When investors start thinking about ASX dividend stocks that bring in a passive income, they usually go straight to classic defensive stocks or the major banks. But BHP Group Ltd (ASX: BHP) shares are another popular choice.
BHP is widely considered a premier blue-chip ASX 200 stock, with a market capitalisation of $319 billion and a strong operational history. At the time of writing, BHP is the largest stock on the Australian sharemarket.
The miner is primarily exposed to iron ore, copper, and other key commodities.
BHP is a cyclical, rather than a defensive stock. While cyclical stocks are closely tied to the broad economic cycle, they usually outperform during periods of economic recovery. And this is good news for income-focused investors.
The low-cost miner has a long history of regular dividend payments, dating back to around 2006. And its commodity exposure is diversified, too. This means it is able to maintain its dividend payouts even when commodity prices fluctuate.
But how much passive income could a $5,000 investment actually generate?
Let's investigate.
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How many BHP shares would you get for $5,000?
At the time of writing, BHP shares are changing hands for $62.61 each.
That means your $5,000 investment would buy around 79 shares in the ASX mining giant.
What does BHP pay its shareholders?
BHP traditionally pays two fully-franked dividends to shareholders each year, in March and September.
The miner most recently paid its shareholders an interim dividend of $1.0385 per share in March, fully franked. This translates to a dividend yield of around 3.3% at the time of writing.
Based on the latest consensus forecasts, BHP is expected to pay a fully-franked dividend of $1.91 per share in FY26 and $1.80 per share in FY27.
Based on the current share price, that translates to a forward dividend yield of around 3% for FY26 and 2.9% for FY27.
It's not the highest dividend yield, but it represents the company's stability and consistency.
So, what's the estimated passive income for FY26 and FY27?
Using the estimated payout figures above, we can calculate roughly how much income you can expect from a $5,000 investment.
If the mining giant were to pay the expected $1.91 per share in FY26, then your 79 BHP shares would generate a total of $150.89.
Assuming the $1.85 dividend forecast for FY27 also comes to fruition, your 79 shares would generate $146.15 in passive income for the year.
