With the iron ore price booming at the moment, Australia's largest miners are swimming in cash.
This bodes well for owners of BHP Group Ltd (ASX: BHP) shares, which could receive some big dividends in 2024.
But how many shares would you need to own if you wanted to receive $10,000 in passive income from the Big Australian this year? Let's find out.
Passive income from BHP shares
According to a note out of Goldman Sachs, its analysts are expecting BHP to reward its shareholders with a fully franked US$1.49 per share dividend in FY 2024.
Based on current exchange rates, this would mean a dividend of $2.26 per share in local currency. It also equates to a 4.75% dividend yield.
Based on this forecast, investors would need to own approximately 4,425 BHP shares in order to generate $10,000 of passive income this year.
Unfortunately, this would mean a rather significant investment. At the current share price, investors would need to put $210,364.50 into BHP shares to receive the desired amount of income.
But Goldman thinks it could be worth it. It has a buy rating and $49.40 price target on the miner's shares. This means that your 4,425 units could have a market value of $218,595 before dividends.
Furthermore, while Goldman is forecasting a dividend cut in FY 2025, a decent payout is still expected.
It has pencilled in a fully franked dividend of US$1.18 per share (A$1.79 per share). If this proves accurate, your 4,425 BHP shares would yield a further $7,920.75 in dividends over the 12 months.
That's a total of almost $18,000 of passive income over the next two financial years.
