Everything you need to know about the BHP dividend

The mining giant has declared how large its upcoming dividend will be.

The BHP Group Ltd (ASX: BHP) dividend has been announced to investors after the company reported its FY25 results.

The ASX mining share said that its revenue dropped by 8% to US$51.3 billion, and underlying attributable profit fell 26% to US$10.2 billion. Its profit was impacted by a decline in iron ore and coal prices, partially offset by higher coal prices. Pleasingly, the copper operating profit (EBITDA) contributed 45% of the total, up from 29% in FY24.

Based on that profitability, BHP decided on the size of its payout.

One hundred dollar notes blowing in the wind, representing dividend windfall.

Image source: Getty Images

BHP dividend

The BHP board of directors has declared a FY25 final dividend of US 60 cents per share, totalling US$3 billion for shareholders.

This payout translates into a dividend payout ratio of around 60%. For FY25, the business made US$1.78 of earnings per share (EPS) and US$2 of underlying EPS. Added to the interim dividend of US 50 cents, BHP's total dividend for FY25 is US$1.10 per share.

BHP boasted that the FY25 payout extends its track record of strong returns while balancing investment in growth. Including the final FY25 dividend, BHP said it will have returned US$59 billion of cash to shareholders since 1 January 2020.

At the current BHP share price, the final dividend represents a fully franked dividend yield of 2.2% and a grossed-up dividend yield of 3.1%, including franking credits.

When will this dividend be paid?

The first date that investors need to be aware of is the ex-dividend date. This is the date where non-shareholders miss out on the payout.

BHP's ex-dividend date for the ASX and London Stock Exchange is 4 September 2025. Therefore, ASX investors have until the end of trading on 3 September 2025 to buy BHP shares to gain entitlement to the payout.

The payment date for this dividend is 25 September 2025, which is just over a month away.

Shareholders can decide to elect to receive new BHP shares instead of cash with the dividend reinvestment plan (DRP). If they do want to take part in the DRP, the election cut-off is 8 September 2025 at 5 pm.

The allocation dates for the DRP may vary between the different registers, but all allocations will be completed on 9 October 2025.

Commodity demand

Future BHP dividend payments are likely to be influenced by what happens with resource prices, particularly iron ore and copper. So, let's take a look at what the mining company said about the outlook for commodities:

Demand for most of our commodities was stronger than expected in H1 CY25.

Chinese policymakers introduced a range of supportive measures over the last year that have underpinned steel and metals-related manufacturing activity. Chinese grid investment, automotive production, and machinery output all recorded YoY growth exceeding 10% in H1 CY25. China's housing sales also showed some signs of stabilisation in the most populous cities, and the ongoing decline in total housing starts and completions slowed in H1 CY25 compared with CY24. Consequently, Chinese steel end-use demand was resilient, while copper was stronger than expected over the period, supported by robust infrastructure investment and manufacturing activity. Manufacturing exports to emerging economies remained solid and offset weaker direct exports to the United States.

Indian commodity demand continues to grow strongly, though competing imports from China narrowed margins for the steel industry over the last year. We expect the country's economic growth to remain resilient over the next two years, supported by strong structural fundamentals and long-term development momentum.

Over the long term, population growth, urbanisation, rising living standards, and the infrastructure required for digitalisation and decarbonisation are all expected to drive demand for steel, non-ferrous metals and fertilisers. We also believe that China's economic transition is expected to result in an increase in demand for copper and potash.

Time will tell what the future BHP dividend payments will be, though the company seems optimistic.

Motley Fool contributor Tristan Harrison 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 recommended BHP Group. 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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