BHP Group Ltd (ASX: BHP) shares are climbing higher in early morning trade on Tuesday, after the ASX mining giant posted a record FY26 earnings result.
The group posted a strong operational performance across all its key segments and an impressive 27% increase in its underlying EBITDA.
Investors are clearly thrilled with the results and many are rushing to snap up the mining shares.
At the time of writing, BHP shares are trading at $64.44. That's around a 4% increase for the day so far and around 41% higher for the year to date.
A strong financial result and climbing share price isn't the only reason investors are interested in the stock. Investors are also thrilled with the miner's higher-than-forecasted FY26 dividend and opportunity for passive income.
But what if you wanted to receive $1,000 of passive income from BHP shares every single month? How achievable is it? And what exactly would it entail?
Let's take a look.
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What dividends does BHP pay to its shareholders?
BHP has a history of paying reliable and consistent fully-franked dividends to its shareholders every year, in March and September.
As part of its FY26 earnings announcement this morning, BHP declared a total fully-franked FY26 dividend of US$1.72 per share. This includes a US$0.73 interim and a US$0.99 final dividend.
The exact Australian dollar equivalent won't be fixed by BHP until the currency conversion period concludes on the 7th of September. But at the time of writing, US$1.72 per share equates to around AU$2.41.
Based on the current share price, this estimated converted dividend translates to a dividend yield of around 3.7%.
How many BHP shares do I need to generate $1,000 per month in passive income?
A $1,000 per month passive income totals $12,000 for the year. Using the figures above, in order to generate $12,000 per year in passive income from BHP shares alone, an investor would need to buy roughly 4,979 shares.
How much would that cost me today?
At the time of writing, to buy the 4,979 shares needed for $1,000 per month (or $12,000 per year) of passive income, you would need to invest close to $321,000.
It's not a small investment, but it could be worth it in the long run. BHP shares offer both a consistent passive income and also the opportunity for capital returns thanks to its healthy business financials and growing share price.
Also note that you don't need to invest that entire sum in one go. Start small and let compound growth do some of the work for you.
