The clock is ticking for passive income investors who want to bank – or reinvest – the upcoming BHP Group Ltd (ASX: BHP) dividend.
In morning trade today, shares in the S&P/ASX 200 Index (ASX: XJO) mining giant are trading for $66.23 apiece.
That sees the BHP share price up 55.1% since this time last year. And it doesn't include the two fully franked BHP dividends the miner has paid (or shortly will pay) for FY 2026.
BHP currently trades on a 3.7% fully franked trailing dividend yield, or 5.2% grossed up if we factor in those franking credits.
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How do I get the BHP dividend?
When BHP released its full year results on 18 August, the miner reported a 15% year-on-year increase in revenue to US$58.8 billion. And on the bottom line, BHP achieved a 30% increase in underlying profit to US$13.2 billion.
This saw management boost the final dividend to 99 US cents per share. The company said it won't determine the precise Aussie dollar equivalent until "on or around 7 September". But CommSec currently has it listed at AU$1.392 per share. That's up more than 51% from last year's final dividend.
Commenting on the dividend payout on the day, BHP CEO Brandon Craig said:
Alongside unlocking of capital from undervalued assets and investing in growth, net debt fell to below US$9 bn, while returning substantial cash to shareholders through a final dividend of 99 US cents per share…
This brings total cash returns to shareholders announced for the year to US$8.7 billion, which is US$1.72 per share fully franked, the highest in four years. Including this dividend, we will have returned more than US$115 billion to shareholders since the introduction of the CAF [capital allocation framework] in 2016.
If you want to bank the boosted dividend, you'll need to own BHP shares at market close tomorrow, 2 September. The ASX 200 miner trades ex-dividend on Thursday. You can then expect to see that passive income hit your bank account on 23 September.
You can also make use of the company's dividend reinvestment plan (DRP) to receive the payout as new BHP shares instead of cash.
Are BHP shares a good buy today?
Morgans' Damien Nguyen recently issued a buy recommendation for BHP shares (courtesy of The Bull).
According to Nguyen:
BHP offers exposure to a portfolio of high-quality mining assets and remains well positioned to benefit from long term demand for copper and other critical minerals. A strong operating performance, healthy cash generation and a disciplined approach to capital allocation continue to support the investment case. While iron ore remains important, increasing copper exposure provides leverage to electrification and decarbonisation trends.
BHP appeals for potential capital growth, income and for diversified resources exposure. The company posted an attributable profit of US$9.8 billion in full year 2026, up 9% on the prior corresponding period. Revenue of US$58.8 billion was up 15%.
Nguyen also pointed to the boosted BHP dividend.
"BHP recently declared a final fully franked dividend of US 99 cents a share," he noted.
