BHP Group Ltd (ASX: BHP) shares are a very popular option for income investors and it isn't hard to see why.
Twice a year, the mining giant rewards its shareholders with big dividends.
For example, earlier this week, the Big Australian released its full year results and declared a fully franked final dividend of 74 US cents per share. This represents a return of US$3.8 billion.
For the full year, this brought its total dividends to US$1.46 per share fully franked, which means total cash returns to shareholders of US$7.4 billion in FY 2024. That's the equivalent of a A$10.9 billion return at current exchange rates.
To put that into context, this is more than the current market capitalisation of AGL Energy Limited (ASX: AGL) or Qantas Airways Limited (ASX: QAN).
The good news is that it isn't too late to qualify for BHP's latest dividend. Its shares will trade ex-dividend on 12 September. After which, pay day is coming the following month on 3 October.
But what's next for the BHP dividend? Let's see what analysts are forecasting for the miner's payouts.
BHP dividend forecast through to 2029
According to a note out of Goldman Sachs, its analysts believe that FY 2024's dividend may be the peak for the foreseeable future.
In FY 2025, its analysts are expecting a cut to 116 US cents (171 Australian cents) per share. Based on the current BHP share price of $40.76, this equates to a 4.2% dividend yield.
The following year, the broker expects another dividend cut to 113 US cents (167 Australian cents) per share. This would mean a fully franked 4.1% dividend yield in FY 2026.
Moving onto FY 2027, another cut is expected. Goldman has pencilled in a 106 US cents (156 Australian cents) per share dividend. This represents a 3.8% dividend yield at current prices.
In FY 2028, Goldman believes the dividend cut trend will continue. It is forecasting a 99 US cents (146 Australian cents) per share dividend for the year. This would mean a dividend yield of 3.6% for investors.
Finally, in FY 2029 the broker thinks the BHP dividend will be increasing at long last. Its analysts have pencilled in a 108 US cents (159 Australian cents) per share dividend for the 12 months. This would mean a 3.9% dividend yield.
In summary, the broker expects the following dividends:
- FY 2025 – 116 US cents (171 Australian cents) per share
- FY 2026 – 113 US cents (167 Australian cents) per share
- FY 2027 – 106 US cents (156 Australian cents) per share
- FY 2028 – 99 US cents (146 Australian cents) per share
- FY 2029 – 108 US cents (159 Australian cents) per share
