BHP Group Ltd (ASX: BHP) shares are in the red today.
Shares in the S&P/ASX 200 Index (ASX: XJO) iron ore miner are down 1.01% in midday trading, currently changing hands for $43.19 apiece.
That puts the BHP share price down 9% over the past 12 months, as iron ore prices have come off the boil.
Of course, this doesn't include the two juicy dividend payments the ASX 200 miner made over the past full year.
As you may be aware, BHP shares have attracted growing interest from passive income investors for the company's recent, outsized, fully franked dividends.
How outsized?
On 22 September, BHP paid a final dividend of $2.552 per share. The interim dividend of $1.364 per share will have landed in investor bank accounts on 30 March.
That rounds out to a full-year payout of $3.92 per share, 100% franked.
At the current share price of $43.19, that equates to a trailing yield of 9.1%. Or a handy $91 in annual passive income from a $1,000 investment, with potential tax benefits.
But some ASX 200 investors will be earning a significantly higher dividend yield.
Now before moving on, please note we're discussing trailing dividend yields here. Future dividend payments will rely on numerous factors.
Dividends from BHP shares in 2023 and 2024 may be higher or lower, depending on various company-specific and macroeconomic factors.
With that said…
Did you buy BHP shares on the July dip?
Buying a company's shares after they've been falling for more than a month can take a cast iron stomach.
After all, there are no guarantees the share price won't go a lot lower.
But with quality stocks, like BHP shares, buying in after a large retrace has the potential of delivering some outsized share price gains along with a significantly higher passive income stream.
July offered one such opportunity.
Brave – or perhaps well-advised – investors could have bought BHP for $36.10 per share on 15 July.
Those investors will be sitting on a tidy 19.4% share price gain today.
But perhaps even more importantly, they'll also be earning a 10.8% yield from those shares. Fully 1.7% more than investors who bought at current prices.
That equates to $108 in annual passive income, with franking credits, from a $1,000 investment in BHP shares.
