Bought $1,000 of BHP shares 10 years ago? Here's how much dividend income you've received

Have BHP's dividends really bumped its stock's 10-year-return beyond 100%?

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Key points
  • The BHP share price has lifted around 41% over the last 10 years to trade at $45.76 today
  • Meanwhile, the iron ore giant has paid out consistent dividends 
  • In fact, considering its biannual offerings, the stock has returned more than 100% over the last decade 

The BHP Group Ltd (ASX: BHP) share price has had a ripper 10 years amid the company's dominance of the Aussie iron ore industry. And that dominance has only grown.

Indeed, the 'Big Australian' added more than $100 billion to its market capitalisation earlier this year when its global listings united on the ASX.

Right now, shares in BHP are trading at $45.76. That's 8% higher than they were at the start of 2022. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has fallen 4% year to date.

Casting our eyes back further, the BHP share price was around $32.46 10 years ago. That means a $1,000 investment in December 2012 likely would have seen a buyer walk away with 30 BHP shares and $26 change.

The value of that parcel has since grown by around 41%, coming in at $1,372.80 today.

However, when factoring in the ASX 200 giant's dividends, the returns an investor might have realised over the last decade increase exponentially. Let's take a look.

two workers in hard hats and high visibility gear give celebratory fist pumps while checking paperwork at a processing site with equipment in the background.

Image source: Getty Images

How much have BHP shares paid in dividends in 10 years?

BHP shares have been offering dividends to ASX investors since 1984. Below are all the dividends the company has handed out over the last decade:

BHP dividends' pay dateTypeDividend amount
September 2022Final$2.55
March 2022Interim$2.08
September 2021Final$2.71
March 2021Interim$1.31
September 2020Final75.4 cents
March 2020Interim99.4 cents
September 2019Final$1.13
March 2019Interim78.1 cents
January 2019Special$1.41
September 2018Final88.5 cents
March 2018Interim70.6 cents
September 2017Final52.9 cents
March 2017Interim53.2 cents
September 2016Final18.5 cents
March 2016Interim21.4 cents
September 2015Final87.8 cents
March 2015Interim80.8 cents
September 2014Final66.2 cents
March 2014Interim64.7 cents
September 2013Final64.4 cents
March 2013Interim55.6 cents
Total: $20.965

It's been a good 10 years for those who might have bought BHP shares for $32.46 apiece in 2012. Their investment has offered them approximately $20.965 per share in dividends over that time.

That means a $1,000 investment this time 10 years ago likely would have brought in about $628.95 of dividends.

Adding that to the 41% return offered by the BHP share price, a $1,000 investment would boast a $1,027.95 return right now – meaning our figurative investor could have doubled their money.

Additionally, all dividends offered by BHP in that time have been fully franked, meaning they could have brought more benefits at tax time.

On top of that, our imagined investor could have reinvested those dividends using a dividend reinvestment plan (DRP), thereby taking advantage of compounding and potentially further increasing their returns.

The BHP share price offers a 10.1% dividend yield right now.

Motley Fool contributor Brooke Cooper 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 Scott Phillips.

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