BHP Group Ltd (ASX: BHP) shares are one of the most popular picks for Australian investors.
The mining giant features in countless portfolios across the globe.
Sometimes investors use the Big Australian's shares for diversification purposes, adding quality exposure to the mining sector to a portfolio.
But for many, BHP shares are used as a source of income thanks to its strong free cash flow generation and generous dividends.
But what would it take to generate a $1,000 second income from the miner's shares? Let's run the numbers and find out.
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A $1,000 second income from BHP shares
The first step to building a second income is to know how big a company's dividend will be.
According to consensus estimates, BHP is expected to reward its shareholders with the equivalent of a fully franked 96.5 cents per share dividend in FY 2026.
If this proves accurate, investors would need to own 1,036 BHP shares to pull in $1,000 in dividends for a second income.
So, with the BHP share price ending the week at $41.61, it will require a sizeable investment of $43,107.96 to hit this goal.
But it certainly could be worth it according to some analysts, which believe that the miner could be a buy at current levels.
Bullish broker
One bullish broker is Morgan Stanley.
According to a recent note out of the investment bank, its analysts responded to BHP's FY 2025 results by retaining their overweight rating on its shares with a $46.50 price target.
Based on its current share price, this implies potential upside of almost 12% for investors over the next 12 months.
To put that into context, those 1,036 BHP shares would have a market value of $48,174 if Morgan Stanley's recommendation proves accurate.
Throw in the $1,000 of income and an investor would have a total of $49,174, which is a 14% total return on investment. Not bad if you ask me!
And the second income won't stop there, let's not forget.
Those BHP shares will continue to pay out dividends in the years that follow. And according to consensus estimates, this will mean a slightly larger fully franked dividend of 97 cents per share in FY 2027, which represents a second income of $1,004.92.
