BHP Group Ltd (ASX: BHP) shares are a popular option for Aussie investors.
In fact, the mining giant had a total of 617,115 individual shareholders at the end of FY 2024.
Combined with superannuation funds and index funds, it's fair to say that the Big Australian's fortunes matter for millions of Australians.
But has it delivered the goods for investors over the past five years? Let's see what a $5,000 investment in the miner would have turned into today.
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$5,000 invested in BHP shares
Five years ago we were near the height of the COVID pandemic and share prices were down in the doldrums.
BHP's shares were changing hands for $30.85, which means that investors could have picked up 162 units with their $5,000.
During the past five years, there have been many ups and downs.
In respect to the ups, at one point in late 2023, the miner's shares were trading as high as $50.41. When its shares were at those lofty levels, those 162 units had a market value of $8,166.42. That's a return of $3,166.42 or 63.3%.
But unfortunately, BHP's shares didn't stay at those levels for long. In fact, they have been on a downward trajectory ever since. Though, thanks to a recent rebound, they are now trading off their recent lows.
The Big Australian's shares ended last week at $38.25. This gives those 162 shares a market value of $6,196.50. This is a return of $1,196.50 or approximately 24%.
As a comparison, the S&P/ASX 200 Index (ASX: XJO) has risen approximately 47% over the same period. This means that there is a relative underperformance of 23% compared to the market.
Some shareholders will no doubt be kicking themselves for not selling out at its 2023 high. But hindsight is a wonderful thing.
Don't forget the dividends
It is worth remembering that BHP is more than just its share price. It is one of the most generous dividend payers on the Australian share market.
And that has remained the case over the last five years.
During this time, BHP has paid a total of $15.02 per share in fully franked dividends to its shareholders.
Based on our 2020 buy price of $30.85, this represents a yield on cost of 51% and dividends totalling $2,433.24. This boosts the total five-year return to a much more attractive 75% or $3,629.74.
So, while on paper it may not immediately look like BHP shares were a good investment, when you factor in dividends the story changes.
