If you've invested in BHP Group Ltd (ASX: BHP) shares, then you might want to read a little further about the company's latest dividend.
The mining giant dropped its full-year results this morning, and it didn't disappoint.
BHP achieved double-digit growth across its key financial metrics on the back of a solid underlying and cost performance.
At the time of writing, shares in the world's largest miner are up 4.59% to $40.70 apiece.
Let's take a look at the latest dividend from the company.
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BHP boosts final FY22 dividend
The BHP board declared a final dividend for FY22 of US$1.75 per share.
This brings the total FY22 dividend to US$3.25 per share, an increase of 8% compared to FY21's full-year dividend.
The company has a 50% minimum payout policy. The cash dividend announced today is equivalent to a 77% payout ratio.
In total, record dividends of US$36 billion (US$7.11 per share) have been determined for FY22.
The ex-dividend date for the final dividend falls on 1 September, with payment following on 22 September 2022.
What about the FY23 dividend?
While BHP didn't give any guidance to its dividend for FY23, we take a glimpse at what one broker thinks.
US-based investment firm Goldman Sachs believes the miner will cut its dividend to US$2.64 in FY23.
This will then be followed by US$2.02 in FY24.
Goldman Sachs' estimates are being driven by the expectation that iron ore prices will decline over the coming years.
This has already been occurring of late, with the steel-making ingredient currently fetching US$109.50 per tonne. That's a significant drop from when it was going for US$160 per tonne in March this year.
BHP share price snapshot
Over the last 12 months, the BHP share price has sunk by 12%, but is up 10% in 2022.
It's worth noting the company's shares touched a year-to-date low of $35.83 on 15 July before sharply rebounding.
Based on today's price, BHP commands a market capitalisation of $205 billion and has a trailing dividend yield of 11.81%.
