Invested $3k in BHP shares in 2020? Here's how much dividend income you've realised

Here's how much passive income the iron ore giant has provided since it rose from its COVID-19 low.

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Key points

  • The BHP share price has gained 23% over the last three years to trade at $42.75 as of Friday's close
  • Meanwhile, the iron ore giant has provided investors with consistent dividends
  • Each BHP stock has yielded $10.76 of dividend income in that time 

If we were to rewind to May 2020, we would find the BHP Group Ltd (ASX: BHP) share price just beginning to lift off its COVID-19 low.

Stock in the mining giant bottomed out at $24.05 amid the onset of the pandemic, before rebounding to $34.64 by the end of May 2020.

That means an investor sinking $3,000 in the iron ore icon exactly three years ago would have walked away with 86 shares.

Today, that holding would be worth $3,676.50. The BHP share price last traded at $42.75 – 23% higher than it was back then.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen 24% in that time.

Meanwhile, BHP has been providing those who invested in its shares with consistent dividends. Let's dive into the passive income that someone who bought into the stock three years ago has likely realised.

All dividends BHP shares have provided since 2020

Here are all the dividends offered to those holding BHP shares since May 2020, rounded to the nearest cent:

BHP dividends' pay dateTypeDividend amount
March 2023Interim$1.36
September 2022Final$2.55
March 2022Interim$2.08
September 2021Final$2.71
March 2021Interim$1.31
September 2020Final75 cents
Total: $10.76

As the above chart shows, each BHP share has provided $10.76 of dividend income over the last three years.

That leaves our figurative parcel having yielded $925.36 over its lifetime.

Considering both capital gains and dividend income, the ASX 200 mining giant has provided a total return on investment (ROI) of 54%. That's certainly nothing to scoff at!

Just imagine how that return might have been compounded if one were to have reinvested their dividends.

And that's before considering the franking credits offered alongside BHP's dividends. They might have brought extra benefits for some investors come tax time.

Right now, BHP shares offer a very respectable 9.16% dividend yield.

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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