The BHP Group Ltd (ASX: BHP) share price is edging higher amid the company's eligible shareholders being rewarded today.
The mining company's shares are currently up 1.24% to $50.39 apiece. This means its shares have surged almost 10% in the past week, and 13% in a month.
In context, the S&P/ASX 200 Index (ASX: XJO) is climbing higher during Monday's morning trade. The benchmark index is up 0.2% to 7,421.3 points.
BHP pays out record interim dividend
BHP reported strong growth across key metrics in its results for the first half of the 2022 financial year.
In summary, profit from continuing operations rose 57% year-on-year to US$9,715 million. Higher sale prices across commodities, new record production at Western Australian Iron Ore (WAIO) and favourable exchange rate movements underpinned the result.
Management noted that despite the strong performance, this was partially offset by a number of factors. This includes planned maintenance across its assets, expected copper grade decline at Escondida, significant wet weather at Queensland Coal, and inflationary pressures.
Nonetheless, the board declared a record fully franked interim dividend of US$1.50 per share to be paid on 28 March (today). This represents a significant increase on the H1 FY21 dividend of US$1.01 and more than double the H1 FY20 dividend of US 65 cents.
When calculating against the current share price, BHP is trailing on a forecast fully franked dividend yield of 5.46%. In addition, the payout ratio is calculated to be 78% of the mining outfit's profits, or US$7.6 billion.
It's worth remembering that the company has paid relatively consistent dividends over the last 18 months, totalling US$22 billion.
BHP share price snapshot
Adding to its impressive gains, the BHP share price has surged around 11% in the last 12 months. When looking specifically at year to date, its shares are up 21%.
BHP has a price-to-earnings (P/E) ratio of 26.03 and commands a market capitalisation of roughly $251.95 billion.
