BHP Group Ltd (ASX: BHP) shares are edging lower today.
Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed on Friday trading for $60.50. In morning trade on Monday, shares are swapping hands for $60.45, down 0.1%.
For some context, the ASX 200 is just about flat at this same time.
Longer term, BHP shares have strongly outperformed the 3% one-year gains posted by the benchmark index, with shares in the ASX 200 mining stock up 56.5% in 12 months.
And that's not including the two fully-franked dividends, totalling $1.958 a share, that BHP paid to eligible stockholders over this period
Adding appeal to passive income investors, BHP shares trade on a 3.3% fully-franked trailing dividend yield.
And Catapult Wealth's Blake Halligan believes the Aussie mining giant is well placed to deliver more outperformance in the months ahead (courtesy of The Bull).
Here's why.
Image source: Getty Images
Should I buy BHP shares today?
Citing the first reason he's bullish on the ASX 200 mining stock, Halligan said, "The global miner holds dominant positions in iron ore and copper and is leveraged to increasing demand during the energy transition."
Addressing BHP's recent, costly operational issues at its Canadian potash project, Halligan said:
A review of the Jansen stage 2 potash project in Canada resulted in a cost blowout of about U$S2 billion to US$6.9 billion. Despite the Jansen impairment and the risk of industrial action at iron ore operations in the Pilbara region of Western Australia, near term earnings momentum remains strong.
Despite that cost blowout, Halligan noted, "Elevated copper prices and strong iron ore prices supported performance in full year 2026."
Summarising the second and third reasons you might want to buy BHP shares today, Halligan concluded, "The balance sheet remains robust with low net debt, while a recent dividend yield above 3% adds income appeal. BHP offers cyclical upside and long-term growth exposure to copper."
A slightly less bullish outlook on the ASX 200 mining stock
Sanlam Private Wealth's Remo Greco also analysed the outlook for the mining giant this week.
And while he has a longer-term bullish outlook on the company, he issued a hold recommendation on BHP shares for now.
According to Greco:
Several disappointing events have led us to downgrade BHP to a hold. Cost over-runs at its Jansen stage 2 potash project in Canada lifts the investment cost by about US$2 billion to US$6.9 billion.
Possible industrial action, although averted in June, may re-ignite at the company's iron ore operations in the Pilbara region of Western Australia. Any industrial action may impact stock performance.
Longer term, we like BHP's exposure to copper – the key metal of the future.
