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Why BHP is an ASX 200 dividend share to buy today

Many S&P/ASX 200 Index (ASX: XJO) dividend shares are on sale right now. Investors have been spooked by the recent bear market and the economic outlook remains a little cloudy.

However, that means share prices may be disconnected from the underlying value of many companies. In fact, an article in the Australian Financial Review indicates that retail investors were busy buying and selling in February and March.

Now, smart investors know when to hold and when to fold. A period of unprecedented volatility that smashed shares is not the time to fold.

Having said that, here’s one ASX 200 dividend share that could be in the buy zone today.

One ASX 200 dividend share to buy today

I like the look of BHP Group Ltd (ASX: BHP) right now. I think the Aussie large-cap has a lot going for it and could be in the buy zone.

BHP shares have slumped 19.11% lower so far this year. That’s a pretty big fall for a company of BHP’s size. The Aussie iron ore miner currently boasts a market capitalisation of $148 billion, which means when it moves, the ASX 200 moves.

Apart from the size factor, BHP is a solid ASX 200 dividend share. The mining group’s shares are yielding 6.73% right now, although I wouldn’t count on that being maintained.

The current environment is making companies wary of spending additional cash. While shareholders still want to be paid, maintaining business stability throughout the next 6 to 12 months is critical.

You may be wondering why you’d buy an ASX 200 dividend share that may slash its dividend. I think the key here is to remember that us Fools invest for the long-term.

The BHP share price has been hammered in 2020 but I think the fundamental environment looks OK. China’s economy is picking back up and we could see a boost to Aussie infrastructure to help mitigate the impacts of a likely recession.

That means BHP could be an absolute steal for its current $31.67 per share valuation.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.