BHP Group Ltd (ASX: BHP) shares are sliding today.
Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed yesterday trading for $42.54. At the time of writing, shares are changing hands for $42.03 each, down 1.2%.
For some context, the ASX 200 is down 0.4% at this same time.
BHP shares look to be underperforming today following a 1.5% overnight drop in the iron ore price to US$103.45 per tonne. Copper prices retraced too, down 1.8% at US$10,663.50 per tonne.
That's today's price action for you.
Now, is the ASX 200 miner a good buy for the passive income it pays?
Image source: Getty Images
How much passive income does the ASX 200 mining stock pay?
BHP shares have delivered two fully franked dividends a year for more than a decade now.
Those passive income payouts reached record levels in 2021 and 2022 when the iron ore price surged above US$200 per tonne, goosing BHP's revenue and profit margins.
As for the past 12 months, BHP paid an interim dividend of 79.1 cents per share on 27 March and a final dividend of 91.9 cents per share on 25 September, both fully franked.
That brings the full-year passive income payout to $1.71 a share. And at the current share price, it sees BHP trading on a fully franked trailing dividend yield of 4.1%.
BHP shares: Buy, hold, or sell?
Sanlam Private Wealth's Remo Greco recently ran his slide rule over the Aussie mining giant (courtesy of The Bull).
"We have been lukewarm on BHP for some time, but there's fundamental changes happening below the surface," said Greco, who has a buy recommendation on BHP shares.
"The new chairman Ross McEwan appears to be driving positive change, and the prize is a better balanced business with the copper division becoming more prominent," he added.
As for the passive income outlook, Greco expects BHP's dividend payouts to remain near recent levels.
"Dividends are likely to stay around the current level as profits are re-invested," he said. "We're not overly concerned about dividends if the global miner generates share price growth."
As for that share price growth, Greco noted:
This will depend on the company allocating its capital expenditure in a responsible and profitable manner. We believe BHP can achieve this and suggest it's a worthy addition to portfolios at current levels.
With today's intraday dip factored in, BHP shares remain up 5.2% in 2025.
