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.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Happy miner with his arms folded.

Image source: Getty Images

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.

More on Dividend Investing

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

Why Ord Minnett rates this ASX 200 dividend stock as a buy

The broker has good things to say about this stock.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

1 ASX dividend stock down 56% I'd buy right now

This business could be a compelling opportunity at this lower price.

Read more »

Stacks of coins in a row with each higher than the last, and a person standing on top of each one watching them grow.
Dividend Investing

The ASX dividend share built for long-term wealth

Boring businesses often generate the best cash flow year after year.

Read more »

Increasing white bar graph with a rising arrow on an orange background.
Dividend Investing

$1,000 buys 757 shares in an incredibly reliable ASX dividend stock

This business has a lot to offer income-focused investors.

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Bank Shares

If I invest $10,000 in NAB shares, how much passive income will I receive in 2027?

Can NAB's high yield hold up?

Read more »

A man wearing only boardshorts stretches back on a deck chair with his arms behind his head and a hat pulled down over his face amid an idyllic beach background.
Dividend Investing

How to build a passive income stream with ASX shares

Dividends are the purest form of passive income...

Read more »

A wad of $100 bills of Australian currency lies stashed in a bird's nest.
Dividend Investing

How many Rio Tinto shares do I need to buy for $10,000 a year in passive income?

Rio Tinto shares have a lengthy track record of paying two fully franked dividends a year.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Dividend Investing

I'd buy this ASX dividend stock in any market

I want passive income and this investment is a top option for it!

Read more »