pre 2017 BHPs yield was quite poor. We had the mining crash in 2016, so that year doesn’t count. However pre 2016, profits were spent on significant expansion and takeovers. BHP learnt the lessons of the past and now run its existing tier 1 assets at optimal levels and maximise dividends to us, which I much prefer.
The issue is we don’t know where commodity prices will be, that’s my point. I have a huge amount of shares, so I personally believe this will continue to be a stellar investment. However unlike defensive companies you can’t reliable predict dividends. What if iron ore was USD$50? Our dividends would be shot.
BHP Price at posting:
$45.73 Sentiment: Buy Disclosure: Held
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