Ann: Dividend/Distribution - BHP, page-11

2.87% @ current price (43.52)/ franking credit included is 4.1%

That rate of return would be fine for those who purchased at prices sub $40 but I'm not sure the added risk of demand slowing out of China prior to demand growing out of India would be making that rate of return attractive to new buyers at this price. I'm certainly content waiting for a better deal and will have another six months to pick that point.

I should specify that given I can get 4.35% return on a regular online cash saving account so that is the zero risk comparison up to $250,000. Should market volatility mean 10% movement down then the money made will be eclipsed by the total value diminished.

It puts the target rate of return at 8.7%, which is quite a mountain to get up unless opportunities to buy at sub $30 come around again.