Everything you need to know about the BHP dividend

How much is BHP paying its shareholders in FY 2023?

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When it comes to dividends, there are few bigger payers across the world than BHP Group Ltd (ASX: BHP).

Each year, the Big Australian shares billions of dollars of its profits with its shareholders.

And with the mining giant releasing its FY 2023 results this morning, it's time to start talking dividends again.

The BHP dividend

In case you missed it, BHP released its full-year results and reported a 17% decline in revenue to US$53.8 billion and a 31% decline in underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) to US$28 billion.

This was driven by a combination of inflationary pressures on costs and lower prices of key commodities.

In light of this profit decline, it will come as little surprise to learn that the BHP dividend was also under pressure in FY 2023.

The BHP board declared a fully franked final dividend of 80 US cents per share. This brings its total fully franked dividends for FY 2023 to US$1.70 per share, which is a sizeable 48% decline from what it paid in FY 2022.

However, it is still the third largest full-year dividend the company has ever declared, totalling US$9.1 billion.

In addition, the company notes that this is the equivalent of a 64% payout ratio and inclusive of an additional amount of USS$1.9 billion above its minimum 50% payout policy.

When is payday?

If you want to receive the next BHP dividend, you will have to own its shares before they trade ex-dividend.

The ex-dividend date for its final dividend is 7 September, after which eligible shareholders can look forward to receiving this payout later that month on 28 September.

Based on its current share price and the latest exchange rates, this final dividend of 80 US cents (A$1.25) per share, is the equivalent of a 2.9% dividend yield.

Motley Fool contributor James Mickleboro 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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