If you have your retirement savings in one of the big managed Aussie super funds, you likely own BHP Group Ltd (ASX: BHP) shares.
But is now a good time to buy more shares in the S&P/ASX 200 Index (ASX: XJO) mining giant for your personal portfolio?
Looking at the past year's performance, BHP shares are down 7.7% over the 12 months and currently trade for $39.20 apiece.
That loss has been somewhat abated by the $1.90 a share in dividends the big Aussie miner has paid out over this time. If we add those back in, then the accumulated value of BHP stock is down a lesser 2.0% in a year.
The miner has come under pressure amid cost inflation and a weakening iron ore price, with some support from a relatively strong copper price.
But with shares now down almost 8% in a year and down almost 15% from the recent 30 September highs, is now a good time to buy BHP shares?
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The case to hold
Red Leaf Securities' John Athanasiou recommends not pulling the trigger on buying more BHP shares just yet (courtesy of The Bull).
"This global miner remains a hold due to its high-quality assets, solid balance sheet and a fully franked dividend yield of about 4%," said Athanasiou.
"It's widely regarded as the most popular choice among large resource stocks, benefiting from diversified exposure across iron ore, coal, copper and other commodities."
But with an eye on the ongoing uncertainty surrounding Chinese steel output alongside other supply and demand factors that could impact the iron ore price in 2025, Athanasiou said:
However, near-term uncertainty surrounding iron ore prices and weakening demand from China poses risk. While BHP is a well-managed company with an enviable cost position, the lack of immediate catalysts leave it as a hold rather than a buy or sell at current levels.
Broker tips BHP shares as a buy
Bell Potter counts among the prominent brokers who believe BHP shares now present good long-term value.
The broker is optimistic about BHP's increasing exposure to copper and the outlook for further Chinese stimulus measures to boost iron ore demand.
According to Bell Potter:
BHP presents an attractive investment proposition, providing exposure to both copper and the potential upside from further Chinese stimulus measures.
BHP is one of the top three global producers of copper and has the largest copper endowment of any company globally. BHP operates the Escondida mine in Chile, where they have a 57.5% ownership stake.
