The BHP Group Ltd (ASX: BHP) share price has been a positive performer on Tuesday.
At the time of writing, the mining giant's shares are up 1.5% to $38.40.
Where next for the BHP share price?
The good news for investors is that one leading broker believes the BHP share price gains are only just getting started.
According to a recent note out of Morgans, its analysts have an add rating and $48.00 price target on the Big Australian's shares.
Based on the current BHP share price, this implies potential upside of 25% for investors over the next 12 months.
But it gets better. The broker is forecasting a fully franked ~$3.97 per share dividend in FY 2023. This equates to a yield of 10.3%, which stretches the total return on offer with BHP's shares to over 35%.
What did the broker say?
Morgans likes BHP due to the diversity of its operations, which it believes make the miner a lower risk option for investors in the mining sector.
In fact, it is thanks to these qualities and its attractive valuation that the broker has put the company's shares on its coveted best ideas list again this month.
Its analysts commented:
We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP's operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.
All in all, this could make BHP a top option for investors looking for dividends or mining sector exposure right now.
