BHP Group Ltd (ASX: BHP) shares are one of the most popular ASX dividend options because of the company's strength, market leading position, dividend yield and passive income payouts.
The ASX mining share typically has a good dividend yield, though sometimes Rio Tinto Ltd (ASX: RIO) and often Fortescue Ltd (ASX: FMG) have a higher dividend yield.
BHP's dividend has bounced around over the last decade with significant shifts in resource prices over time.
In the company's FY26 half-year result, the business hiked its annual dividend per share by 46% to US 73 cents following a 28% rise of the net profit to US$5.6 billion.
In this article, we're going to look at the potential annual FY27 dividend, which will be paid during 2027.
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2027 dividend projection for owners of BHP shares
According to the projection on Commsec, the ASX mining share is projected to pay an annual dividend per share of A$2.113 in the 2027 financial year.
At the time of writing, this forecast translates into a dividend yield of 3.5% excluding franking credits and 5% including franking credits.
If someone were to invest $8,000 in BHP, they would be able to buy 133 BHP shares (with a little bit of money left over).
With those 133 BHP shares, investors could receive $281.03 of cash and perhaps $120.44 of franking credits.
Is this a good time to invest in the ASX mining share for passive income?
According to CMC Invest, there have been 15 recent analyst ratings calls on the business in the last three months.
Of those 15 ratings, one was a buy and the other 14 were holds. So, the investment professionals are almost entirely neutral on the company's valuation right now.
The average price target of those 15 analyst ratings is $57.43. That means, collectively, those analysts are predicting the BHP share price will (at the time of writing) fall a little over the next year.
Over the past year, the BHP share price has been below $36 and above $64, so analysts are expecting the company to hold onto its gains from the last year, but not deliver any more. The dividend could play an important part in whether BHP shares deliver a positive return or not in the next 12 months.
However, with low/negative returns on offer (at the time of writing), according to the price target, there seem to be more compelling ASX shares out there to buy.
