The BHP Group Ltd (ASX: BHP) share price is having a strong day on Thursday.
In morning trade, the mining giant's shares are up 4% to $52.61.
This means the BHP share price is now up 24% since the start of the year and trading within sight of its record high of $54.55.
Why is the BHP share price rising on Thursday?
There appears to have been a couple of catalysts for the rise in the BHP share price today.
The first is a positive session for commodity prices overnight on Wednesday. Oil prices rose amid supply concerns and base metal prices pushed higher after the US dollar weakened.
In respect to the latter, according to CommSec, the aluminium price rose 3.5%, the nickel price climbed 3.7%, and the iron ore price rose slightly and sits at a lofty US$150.88 a tonne.
This has helped drive the S&P/ASX 200 Resources index 2.5% higher this morning.
What else?
In other news, this morning a broker note out of Macquarie reveals that its analysts have retained their outperform rating and $61.00 price target. This implies potential upside of 16% even after today's strong gain.
But it doesn't stop there. Macquarie expects a dividend yield of 10% in FY 2022 and 6.9% in FY 2023, making the total potential return on offer even more attractive for investors.
Macquarie believes that sky high iron ore and coal prices will underpin strong earnings, cash flow, and dividends in the coming years.
