If I'd invested $20,000 in BHP shares at the start of 2023, here's how much I'd have now

How has the Big Australian performed for investors this year?

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BHP Group Ltd (ASX: BHP) shares are a popular option for investors.

The mining giant features in countless portfolios across the country and is also likely to make up a large part of many superannuation accounts.

But have BHP shares been a good place to invest this year? Let's take a look and see what a $20,000 investment at the start of the year would be worth today.

Have BHP shares delivered the goods in 2023?

Firstly, the Big Australian's shares finished last year at $45.63.

Today, the miner's shares are currently fetching $45.40, which represents a small 0.5% decline year to date.

While this isn't a great start, it is worth remembering that the ASX 200 index has been out of form this year.

The benchmark index is currently down almost 1.5% in 2023, which means BHP shares are outperforming by approximately 1% this year.

In addition, BHP is traditionally one of the biggest dividend payers in the world and this has remained the case this year.

The miner paid the equivalent of a $1.364 per share fully franked dividend in March and then a $1.251 per share fully franked dividend in September. That's total dividends of $2.615, which equates to a generous yield of 5.75%.

This means that if you had invested $20,000 into BHP's shares at the start of the year, you would have received $1,150 in dividends.

If these dividends were reinvested, then our BHP investment would currently be worth $21,049 after accounting for the aforementioned year to date decline.

But the returns may not stop there. Morgans currently has an add rating and a $50 price target on its shares last month. This implies a 10% upside and would bring the value of our investment to $23,065.

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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