A lot of SMSF and institutional investors have done well holding BHP Group Ltd (ASX: BHP) shares over the last 12 months.
Not only is the stock up around 17 per cent but BHP has also paid out A$1.92 per share plus full franking credits to income-hungry investors. That equals a term-deposit thumping 5.1% yield at today's share price of $37.50. In addition it completed a US$5.2 billion share buy-back after it sold its onshore U.S. shale assets to further boost total shareholder returns.
According to an October 30 2019 research note out of Goldman Sachs there could be more upside ahead for BHP, with iron ore prices forecast to average US$86 a tonne over 2020.
While Goldman's expects iron ore to make up around 65% of group EBITDA in 2019 it also suggested BHP could increase total oil production by 50% come FY 2030.
Goldman's has a target price of $39.40 on BHP shares. It also has a buy rating on Rio Tinto Limited (ASX: RIO) shares.
