Do you have $1,000 to invest in the share market? Wondering where to invest it?
Well, let's take a look at BHP Group Ltd (ASX: BHP) shares and see if the miner is a worthy candidate for your hard-earned money.
$1,000 invested in BHP shares
If you were to invest $1,000 into the Big Australian's shares, you would end up with 23 units in your investment portfolio.
Let's now find out what these 23 BHP shares could be worth this time next year.
According to a recent note out of Macquarie, its analysts have an outperform rating and a $47 price target on the mining giant's shares.
If Macquarie is on the money with its recommendation, your 23 units would have a market value of $1,081 next year.
But the returns don't stop there. BHP is one of the biggest dividend payers in the world and Macquarie expects this to remain the case in FY 2024.
Its analysts are forecasting a fully franked $2.05 per share dividend. This represents a 4.7% dividend yield and would lead to a dividend income of $47.15 from your 23 units.
Bigger returns expected from Morgans
The team at Morgans is even more bullish and expects BHP's shares to generate bigger returns.
The broker currently has an add rating and a $51 price target on them, which would value your holding at $1,173.
And with Morgans expecting a $2.66 per share fully franked dividend in FY 2024, you can add in dividend income of $61.18.
Morgans' positivity stems from the miner's ability to defend against cost pressures. It said:
A solid FY23 result from the big miner, with BHP Group defending again broad global cost pressures, and further building its competitive advantage.
All in all, these brokers appear to see BHP's shares as a good place to invest $1,000 today.
