When it comes to dividends, BHP Group Ltd (ASX: BHP) is up there as one of the biggest payers in the world.
Over the last few years, the mining giant has distributed tens of billions of dollars to shareholders in the form of dividends.
But what's next for the Big Australian? Are even bigger dividends on the way? Let's see what analysts are saying about the BHP dividend.
Where next for the BHP dividend?
As a reminder, in February, BHP declared and then paid a fully franked 90 US cents interim dividend for FY 2023.
Looking to August, a recent note out of Goldman Sachs reveals that its analysts are expecting a fully franked final dividend of 87 US cents per share.
This will take the BHP dividend to US$1.77 per share for FY 2023. Based on the latest exchange rates and the current BHP share price of $45.52, this will mean an attractive dividend yield of 5.65%.
It is worth noting that the consensus estimate is for a higher dividend of US$1.90 per share in FY 2023. This equates to a 6.1% dividend yield at current levels.
2024 forecast
Unfortunately, as things stand, both Goldman Sachs and the analyst consensus estimate are predicting a cut to the BHP dividend in FY 2024.
Goldman Sachs is forecasting a US$1.26 (A$1.83) per share dividend and the consensus estimate is a US$1.50 ($2.18) per share dividend.
Though, despite the cut, this will still result in an attractive yield for investors. Goldman's estimate implies a 4% yield, whereas the consensus estimate implies a 4.8% yield.
It is also worth remembering that a lot can change in the space of 12 months. For example, if iron ore prices are stronger than expected, then BHP could be in a position to pay even bigger dividends than forecast.
