Eagerly awaiting your 2021 BHP dividend? Here’s what to look for

Wondering what the BHP dividend will be in FY 2021? Here’s what these analysts are expecting from the mining giant…

| More on:
a business exec making a grab for money

Image source: Getty Images

Later today mining giant BHP Group Ltd (ASX: BHP) will release its highly anticipated full year results and reveal its earnings and dividend for FY 2021.

Ahead of the release, I thought I would look to see what the market is expecting from the Big Australian.

How big will the BHP dividend be in FY 2021?

A couple of leading brokers have recently given their opinions on the size of the BHP dividend in FY 2021 and beyond.

According to a note out of Morgans, its analysts expect BHP to report underlying EBITDA of US$37,144 million and underlying net profit after tax of US$17,674 million in FY 2021. It notes that this would be BHP’s biggest earnings since FY 2011, and a 32% increase year on year.

In light of this, the broker is forecasting full year dividends per share of US$2.81 (~A$3.84). It also expects a similar pay out the following year. Based on current exchange rates and the latest BHP share price of $51.38, this implies a dividend yield of 7.5%.

Morgans has a hold rating and $45.80 price target on the company’s shares.

A big dividend in FY 2021 but an even bigger one in FY 2022

Elsewhere, the team at Goldman Sachs are expecting a big BHP dividend in FY 2021 and then an even bigger one next year.

According to a recent note, its analysts expect the mining giant to report underlying EBITDA of US$37.2 million for FY 2021. This is expected to underpin a US$2.89 (A$3.94) per share fully franked dividend.

Goldman then expects this dividend to increase strongly next year. Its analysts have pencilled in a US$4.46 (A$6.09) per share fully franked dividend in FY 2022. This implies yields of 7.7% and 11.9%, respectively, over the two years.

Goldman Sachs has a buy rating and $57.70 price target on BHP’s shares.

Should you invest $1,000 in BHP right now?

Before you consider BHP, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and BHP wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing