That's what makes the following ASX dividend stocks stand out. They combine reliable businesses with long track records of growing shareholder income, making them worth a closer look for investors seeking rising passive income.

APA Group (ASX: APA)

Among Australia's leading ASX dividend stocks, APA Group has built an enviable reputation for income investors.

The company owns critical energy infrastructure, including gas pipelines, electricity transmission assets, and renewable energy connections. Much of its revenue is backed by long-term contracts, creating stable cash flows that support regular distributions.

APA has increased its annual distribution every year since 2004, an impressive record spanning more than two decades. Management expects to pay a FY26 distribution of 58 cents per security, while Bell Potter forecasts this will rise to 59 cents in FY27. Based on the current share price, that implies a forward yield of around 5.6%.

Although APA carries significant debt and faces the long-term energy transition, its growing investment in electricity and renewable infrastructure could help support future distribution growth.

Argo Investments Ltd (ASX: ARG)

Investors looking for diversified ASX dividend stocks should also consider Argo Investments.

Rather than operating a single business, Argo owns a broad portfolio of leading Australian companies, including Commonwealth Bank of Australia (ASX:CBA), BHP Group Ltd (ASX: BHP), and Rio Tinto Ltd (ASX: RIO). That diversification helps smooth returns while reducing company-specific risk.

Argo has paid dividends every year since 1946 and has delivered fully franked dividends since 1995.

The company recently lifted its interim dividend by 8.8% to 18.5 cents per share. Combined with its previous payment, shareholders have received 38.5 cents per share over the past year, equating to a grossed-up yield of roughly 4.3%, including franking credits.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Few ASX dividend stocks can match Washington H. Soul Pattinson's remarkable consistency.

The diversified investment company has increased its annual dividend every year since 1998, putting it within reach of three decades of consecutive dividend growth.

Its portfolio spans resources, energy, telecommunications, agriculture, financial services, industrial property, and many other sectors. That diversification allows Soul Patts to generate cash flow from multiple sources while reducing reliance on any single industry.

Importantly, management reinvests part of its earnings rather than distributing every available dollar. That disciplined approach has helped grow both the business and its dividends over time.

Based on its two most recent payments, the ASX dividend stock offers a grossed-up yield of around 3.4%, including franking credits. While the yield isn't the highest on the market, its long history of increasing dividends may prove even more valuable for long-term investors.

Foolish takeaway

The best ASX dividend stocks don't simply offer attractive yields today. They keep rewarding shareholders year after year.

Companies with durable businesses, dependable cash flow, and a commitment to growing dividends can help investors build an income stream that keeps rising long after the initial investment.

The post Want a pay rise? These ASX dividend stocks could deliver one appeared first on The Motley Fool Australia.

Many Aussies think that they need to invest millions of dollars to make it worth it. But those with more experience know that you can earn a good passive income off any-sized portfolio if it's invested wisely.

But how much dividends could you actually earn?

Let's break it down, using a $400,000 portfolio as an example.

How much could I earn off a $400,000 ASX share portfolio?

To calculate your passive income, you need to multiply your total portfolio value by your dividend yield.

The tricky part is that the answer varies widely depending on your portfolio's dividend yield.

For example, $400,000 x 3% = $12,000 per year in dividend payments.

But if you double your portfolio yield to around 6%, your passive income will be double the size too. That's because $400,000 x 6% = $24,000 per year in dividend payments. 

That's some decent passive income!

Then, as your dividend yield increases, the passive income you can earn from your $400,000 portfolio also increases.  

These figures are based on cash dividends before any tax or franking credits.

Of course, this type of money isn't going to become a primary income stream, but it'll certainly help turbocharge your wealth.

Which ASX shares could earn me $12,000 per year in dividends?

To earn an annual passive income of around $12,000, your portfolio will need to yield around 3%.

A 3% dividend yield is very achievable, and there is a huge range of high-quality ASX dividend shares that pay out around that level. 

Macquarie Group Ltd (ASX: MQG), Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are all stable ASX shares that yield around 3%.

What ASX shares could help me earn around $24,000 per year in dividend payments?

To earn an annual passive income of around $24,000, your portfolio will need to yield around 6%.

This is slightly higher than the index average, but there are still plenty of options available.

I'd look at ASX shares like Origin Energy Ltd (ASX: ORG), Graincorp Ltd (ASX: GNC), or Harvey Norman Holdings Ltd (ASX: HVN), which all yield around this level.

What about if I wanted to earn $28,000 per year in dividends, or even more? Is that possible?

Yes, it's possible, although your portfolio would need to average a dividend yield of 7% or higher.

There are options around this level, but remember, the higher the yield, the more risk those ASX shares have.

For ASX shares yielding around 7%, I'd look at Orora Ltd (ASX: ORA), Atlas Arteria Ltd (ASX: ALX), and Dexus Industria REIT (ASX: DXI). Abacus Group (ASX: ABG) pays a little higher, closer to 9%.

Of course, it's important to note that, ideally, you want to build a portfolio comprising a mix of different yielding shares for diversification, rather than a portfolio of just one stock.

The post How much could a $400,000 ASX share portfolio pay in dividends? appeared first on The Motley Fool Australia.

The mining giant regularly returns billions of dollars to shareholders through dividends, although the size of those payments can change considerably from year to year.

So, what income could a $100,000 investment produce at the current BHP share price?

Why income investors like BHP

BHP owns a collection of large mining operations that can generate enormous profits when commodity markets are favourable.

I think its scale is a major attraction. The company can invest in its operations, strengthen its balance sheet, fund new projects, and return surplus money to shareholders.

Dividends have been an important part of that capital allocation.

However, BHP is not the type of company I would expect to pay an identical dividend every year. Earnings are influenced by commodity prices, production volumes, operating costs, exchange rates, and demand from major economies.

That means the income can be generous during strong periods and lower when market conditions become less favourable.

As a result, I think investors need to accept that variability before buying BHP shares primarily for passive income.

What are analysts expecting?

BHP shares are currently trading around $59.15.

According to CommSec consensus estimates, the company is forecast to generate earnings per share of $3.49 in FY26 and $3.61 in FY27.

Those earnings are expected to support fully franked dividends per share of $2.17 in FY26 and $1.93 in FY27.

The forecasts imply dividend payout ratios of approximately 62% and 53%, respectively.

I like that the expected dividends leave some earnings inside the business. BHP still needs money to maintain its operations, develop future production, and protect the balance sheet through weaker commodity cycles.

How much passive income could $100,000 produce?

At $59.15 per share, a $100,000 investment could purchase approximately 1,690 BHP shares before brokerage.

Based on the FY26 dividend forecast of $2.17 per share, those shares could generate around $3,667 of annual passive income.

The forecast FY27 dividend of $1.93 per share would produce approximately $3,262.

That represents forward dividend yields of around 3.7% and 3.3%, respectively.

Both forecasts are fully franked, which could increase the value of the income for eligible Australian investors.

Should I buy BHP shares for passive income?

I think BHP could be a good income investment for someone comfortable with changing dividends.

The forecast dividend yields are not exceptionally high at the current share price. However, investors are also gaining exposure to a financially strong global miner with the ability to return substantial amounts of money when conditions allow.

Foolish takeaway

A $100,000 investment in BHP shares could generate approximately $3,667 in FY26 passive income, falling to around $3,262 in FY27 based on current forecasts.

That may not be enough for investors chasing the highest possible yield, but I think BHP offers more than the next dividend payment.

For investors prepared to accept a variable income stream, the mining giant could still be a strong long-term share to own.

The post How much passive income would $100,000 of BHP shares make? appeared first on The Motley Fool Australia.

For me, the difference comes down to the price investors are being asked to pay for their future earnings.

Here is my buy, hold, and sell verdict.

Buy: BHP shares

BHP is my buy at around $60.18.

Based on CommSec consensus estimates, the shares trade on a PE ratio of approximately 17.2 times FY26 earnings and 16.7 times FY27 earnings.

I think that is a reasonable price for a miner with BHP's scale, high-quality operations, and ability to generate substantial cash when commodity markets are favourable.

What I like is the range of options available to management when its cash flow is strong. BHP can invest in its existing operations, develop new sources of production, strengthen the balance sheet, or return excess cash to shareholders.

Speaking of which, CommSec consensus forecasts are for fully franked dividends per share of $2.17 in FY26 and $1.93 in FY27. Those estimates imply dividend yields of around 3.6% and 3.2%, which I think are attractive.

The earnings and dividends will remain sensitive to commodity prices. But at the current valuation, I think the potential return is attractive enough to justify buying.

Hold: Wesfarmers shares

Wesfarmers is an ASX share I would feel comfortable owning for many years.

Its strength extends beyond the key Bunnings and Kmart brands. I also like the company's culture, disciplined approach to capital allocation, and willingness to move away from investments that no longer offer attractive returns.

OnePass, customer data, digital channels, healthcare, and lithium could all support further growth.

My hesitation now is entirely to do with valuation. At approximately $90.61, Wesfarmers trades on around 35.5 times forecast FY26 earnings and 33.1 times FY27 earnings, according to CommSec consensus estimates.

I think Wesfarmers can continue growing, but the current share price already reflects considerable confidence in that outcome.

I would happily hold the shares if I already owned them. But I would wait for a more attractive entry point before adding substantially, making Wesfarmers a hold for me.

Sell: Westpac shares

Westpac remains a large and profitable bank with a strong customer base and fully franked dividends.

At around $37.94, I think investors are paying too much for the expected growth.

The shares trade on approximately 17.9 times FY26 earnings and 17.7 times FY27 earnings. Analysts expect earnings per share to increase only slightly from $2.12 to $2.14 across those years.

Forecast dividends of $1.54 and $1.55 per share imply yields of approximately 4.1%.

The income may still attract some investors, but Westpac faces a difficult environment. Higher interest rates can place more pressure on borrowers, while strong mortgage and deposit competition could restrict margins and earnings growth.

I do not think Westpac is a bad business. I simply think there are better combinations of growth, quality, and valuation available elsewhere.

Foolish takeaway

BHP offers the most attractive balance between valuation and long-term potential, making it my buy.

Wesfarmers remains an excellent company, although I think its premium valuation makes holding the better choice today.

Westpac still has positive qualities, but limited forecast earnings growth and a relatively full valuation make it my sell.

The post Buy, hold, sell: BHP, Wesfarmers, and Westpac shares appeared first on The Motley Fool Australia.

At the time of writing, the ASX mining stock is up around 1% over the past month, and is nearly 50% higher than this time last year.

For context, the S&P/ASX 200 Index (ASX: XJO) is up around 2.5% over the past month, and 4% higher than 12 months ago, at the time of writing.

Can BHP shares climb higher in August? Or has the mining stock now reached a ceiling?

What happened to BHP shares in July?

BHP suffered from some investor profit-taking early in July after hitting record highs the month prior, in mid-June, but the BHP share price quickly recovered. 

The mining heavyweight's shares were supported by renewed investor appetite for mining stocks in July. After a period of weakness driven by concerns around geopolitical uncertainty and commodity demand, investors have started to rotate back into diversified miners.

But improved sentiment was offset by an operational update out of the miner mid-month.

In mid-July, the miner posted an operational update. It announced record iron ore production over the year to the end of June, up 1% to 264.7 million tonnes. Copper, however, was 3% lower than the previous year at 1.95 million tonnes.

The company also announced that while the company has several growth projects underway, BHP is guiding lower copper output this year, with a forecast of 1,650,000 to 1,800,000 tonnes of copper. Iron ore is expected to stay largely flat at 260 to 272 million tonnes.

Copper output has been impacted by a conveyor belt failure at the Carrapateena mine, impacting output at the company's South Australian operations for up to eight weeks.

Here's what the experts expect next.

Should I buy BHP shares in August?

If broker analysis is anything to go by, it looks like the shares are now trading around fair value.

Market Index data shows the majority of brokers have a hold rating on BHP shares. The average $62.30 target price implies a potential 3% upside, at the time of writing.

TradingView data shows the same sentiment. The majority of analysts (14 out of 21) have a hold rating on BHP shares. Another five rate the mining stock as a strong buy, and two rate the shares as a sell.

The average $63.06 target price implies a potential 5% upside over the next 12 months, at the time of writing. But the range between the maximum and minimum target prices is huge. Some forecast the shares to fall around 27% to $44.05. Meanwhile, others are bullish that BHP shares could soar 55% higher to $93.42 over the next 12 months, at the time of writing.

Morgan Stanley is one of the more bullish brokers among the bunch. The investment bank recently reaffirmed its buy rating on BHP shares and maintained a 12-month price target of $67.50. The broker likes that BHP is exposed to surging copper demand. It also thinks the company's iron ore operations are performing well.

The team at Morgans has a hold rating and $60.20 target price on the miner's shares. The broker said the mining giant ended FY26 on a good note, with an operational result largely in line with consensus and a touch ahead of estimates in places.

BHP is expected to announce its full-year results for FY26 on the 18th of August.

The post Should I buy BHP shares in August? appeared first on The Motley Fool Australia.

The bulk of the market opens its books over the next four weeks.

Amongst all of that, Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are the names investors will be watching most closely.

Between them they account for a substantial slice of the S&P/ASX 200 Index (ASX: XJO), which means their results tend to shape the index return regardless of what the rest of the market delivers.

The ASX shares that go first

CBA will release its full year results and final dividend on 12 August, whereas BHP is expected to follow with its FY26 numbers roughly a week later.

The final CBA dividend goes ex on 19 August, with payment due on or around 29 September.

Both companies are index heavyweights, so their results tend to move the broader market on the day.

That makes them a useful barometer for what the rest of reporting season might deliver.

CBA's most recent earnings result

CBA reported its half-year results for the six months to 31 December 2025 on 11 February.

In those results, cash net profit after tax came in at $5.45 billion, up 6% on the prior corresponding period. Meanwhile, the net interest margin held steady at 2.04% on an underlying basis and return on equity rose 10 basis points to 13.8%.

The Common Equity Tier 1 capital ratio finished the half at 12.3%, comfortably above APRA's minimum requirement. What I found really encouraging was that loan impairment expense fell to $319 million as home loan arrears declined.

The board declared a fully franked interim dividend of $2.35 per share, equal to roughly 72% of cash profit.

Chief executive Matt Comyn said the bank's balance sheet settings "remain resilient with strong levels of capital, deposit funding and provisioning".

BHP's most recent earnings result

BHP delivered its half-year result in February, with revenue up 11% to US$27.9 billion. Underlying EBITDA rose 25% to US$15.5 billion at a margin of 58%. Copper generated record EBITDA of US$8 billion, accounting for just over half of group earnings.

The interim dividend came in at 73 US cents per share, a 46% lift on the previous half.

Its recent operational review carried a warning, though: BHP guided FY27 copper production to between 1,650 and 1,800 kilotonnes, down from 1,953 kilotonnes in FY26.

That step down is driven largely by a forecast grade decline at Escondida, where concentrator feed grade has already slipped to 0.90% from 1.02% a year earlier.

Why these ASX shares could set the tone

Morgan Stanley has flagged estimate dispersion across the ASX 300 at 10.6, up from 9.7 in February and above the 20-year average of 10.

Close to 30% of companies carry analyst forecasts that are 80 days old or more, while 53% are working from estimates of at least 50 days.

Equity strategist Chris Nicol warned that "widening dispersion suggests consensus forecasts may be becoming increasingly stale", which lifts the scope for sharp share price reactions on results day.

For CBA, the questions are margin direction and the size of the final dividend.

For BHP, it is whether the market looks through a softer FY27 copper outlook to the growth pipeline beyond it.

Given both companies together represent more than 20% of the broader ASX 200, should both results outperform expectations, investors can reasonably expect the ASX 200 to outperform accordingly.

Foolish takeaway

These two ASX shares may not tell the whole story of August for the ASX.

But given that they represent more than 20% of the market, they will tell investors plenty about the health of the banks and the miners.

Those two sectors still drive the bulk of returns on the Australian market, and that makes the second and third weeks of August worth marking in the diary.

The post Reporting season starts next week. Here are the ASX shares to watch appeared first on The Motley Fool Australia.

Of course, the two S&P/ASX 200 Index (ASX: XJO) titans – the biggest two companies on the ASX by market cap – don't directly compete against each other. And they're not at war!

But there are distinct advantages to holding a dominant position on the ASX, including attracting greater inflows from index-tracking funds.

Here's what's been happening.

CBA shares closing the gap

Heading into 2026, CBA had held the title of biggest ASX share for almost 18 months.

But Australia's biggest bank relinquished that crown back to BHP on 27 January. Over the next few weeks, the two ASX juggernauts handed that title back and forth as one stock alternately outperformed the other.

But by March, BHP had taken a commanding lead, with the miner's shares buoyed by an iron ore price of around US$110 per tonne and surging copper prices.

That boost came as CBA shares struggled amid persistent analyst warnings over the ASX bank stock's overvaluation relative to its peers. CommBank also faced headwinds from rising investor concerns that ongoing elevated inflation and higher interest rates could lead to lower home loan volumes and higher default rates.

Over the last six weeks, however, BHP's commanding lead has shrunk considerably.

Currently trading for $60.05 apiece, BHP shares have slipped 1.2% since market close on 11 June.

Over this same time, CBA shares have leapt 16.8% to be changing hands for $175.23 at the time of writing on Monday.

This sees CommBank stock commanding a market cap of around $292.9 billion, or just $12.2 billion shy of BHP's current $305.1 billion valuation.

Why is the race back on?

CBA shares are closing the gap on BHP's biggest ASX stock title following a strong year of outperformance from the Aussie mining giant.

Indeed, BHP shares have gained 49.1% over the past 12 months, while CBA stock is up a meagre 0.2%.

That divergent performance has prompted more retail and institutional investors to reevaluate their allocations to the mega-cap ASX shares, with some analysts believing BHP's share price has outpaced its fundamentals.

BHP has also come under pressure with the iron ore price falling back below US$100 per tonne. The industrial metal is currently fetching US$98 per tonne.

And BHP's share came under selling pressure on the heels of the company's June quarter results (Q4 FY 2026).

Fourth-quarter copper production of 491,900 tonnes was down 5% from Q4 FY 2025. And iron ore production of 68.1 million tonnes was down 3% year on year.

The post Game on! CBA shares tighten the race with BHP for biggest ASX stock crown appeared first on The Motley Fool Australia.

It's not hard to see why.

The banking giant is the largest ASX bank on the Australian sharemarket, and the second-largest ASX 200 stock behind BHP Group Ltd (ASX: BHP) by market capitalisation.

CBA is a cyclical stock, but it has strong defensive qualities. Scarcity of quality stocks on the ASX also means investors tend to put major players, like CBA, on a pedestal. The bank's sheer size and market dominance means investors generally consider it a safe haven, even when markets are choppy. 

CBA's huge scale and consistent operational performance have enabled the bank to pay regular passive income to its shareholders.

But what if you wanted to generate $12,000 of passive income from CBA shares every year? What exactly would that entail?

Let's investigate.

What passive income does CBA pay its shareholders?

First, we need to understand what dividends the banking giant pays its shareholders.

CBA's huge scale and consistent operational performance have enabled the bank to generate a long history of paying regular fully-franked dividends in March and September every year, dating back to 1992. 

Its latest payment was a fully-franked interim dividend of $2.35 per share in late-March.

Looking ahead, the bank is forecast to pay a total dividend of $5.15 per share to shareholders in FY26. It is then expected to pay around $5.45 per share in FY27.

At the time of writing, this translates to a forward dividend yield of around 3% for FY26. For FY27, the forward dividend yield is about 3.1%.

Ok, so how many CBA shares do I need to buy to generate $12,000 in passive income?

Assuming CBA pays the expected $5.45 per share dividend in FY27, investors would need to buy 2,201 shares in order to generate $12,000 per year in passive income.

How much would that cost?

At the time of writing, CBA shares are changing hands for $173.78 each.

This means that in order to buy the 2,201 shares needed for $12,000 of passive income, you would need to invest around $382,000.

That's certainly not a small amount of money. But it could be worth it in the long run.

Not only could investors earn a nice passive income every six months, but there is potential for capital returns too.

And also don't forget, that entire amount wouldn't need to be invested all in one go. Let compounding do some of the work for you.

The post How many CBA shares do I need to buy for $12,000 of passive income? appeared first on The Motley Fool Australia.

The company reports its full year numbers next month. This reporting season is shaping up as an unusually nervous one for the wider market.

But after a strong run, BHP shares in particular are under a lot of pressure to perform.

Why BHP shares ran so hard in FY26

The BHP share price soared 62% in FY26 to finish at $59.40 on 30 June.

That was part of a broader resources boom that delivered the sector its strongest year since 2006.

Copper did most of the heavy lifting, as the metal became the centre of BHP's investment case.

Shares have eased back since that June peak and now trade near $58 following the market-wide sell-off late last week.

The most recent earnings result

BHP delivered its half-year results for the six months to 31 December 2025 in February. In those results, revenue climbed 11% to US$27.9 billion. Underlying EBITDA rose 25% to US$15.5 billion, at a margin of 58%, and underlying attributable profit increased more than 20% to US$6.2 billion.

BHP generated US$9.4 billion in operating cash and finished the half with net debt of US$14.7 billion, comfortably mid-range against its US$10 billion to US$20 billion target.

That strength funded an interim dividend of 73 US cents per share, a 60% payout ratio and a 46% lift on the previous half.

However, the result was defined by one number above all others.

Copper generated record EBITDA of US$8 billion at a margin of 66%, accounting for just over half of group earnings. Management noted that copper's share of earnings has risen 30 percentage points in three years, becoming the primary source of earnings for the company.

The risk hanging over BHP shares

The recent operational review for the year to 30 June 2026 carried a warning for investors.

Total copper production fell 3% to 1,953 kilotonnes across FY26. More importantly, BHP guided FY27 copper production to between 1,650 and 1,800 kilotonnes.

That is a material step down, driven largely by a forecast grade decline at Escondida.

Concentrator feed grade has already slipped to 0.90% from 1.02% a year earlier, and capital expenditure guidance of roughly US$11 billion per annum for both FY26 and FY27 adds further pressure on near-term free cash flow.

Investors will also be watching for the first real commentary from BHP's new chief executive, who took the role on 1 July.

Foolish takeaway

The bull case for BHP shares rests on copper, and specifically on whether the market looks through a softer FY27 to the growth pipeline beyond it.

Jansen, Resolution Copper and Vicuña are all long-dated projects that will not contribute this year or next.

BHP's balance sheet gives management room to keep investing while still returning cash to shareholders.

What's more, the result itself should be strong, given commodity prices through the second half.

However, like always, the share price reaction will hinge a lot on what management says about FY27 rather than what it reports about FY26.

The post Why BHP shares could be an ASX 200 highlight this reporting season appeared first on The Motley Fool Australia.

The Reserve Bank has left the cash rate at 4.35% after three increases since January, which means cash is a competitor again.

That raises the bar for any shares bought primarily for income.

The three blue chips below are not the highest-yielding names on the market, but they are, in my view, among the most dependable.

Commonwealth Bank of Australia (ASX: CBA)

Commonwealth Bank of Australia is the default income holding for millions of Australians.

Analysts expect a total dividend of $5.15 per share in FY26, rising to roughly $5.45 in FY27.

That works out at a forward yield of around 3%, or about 4.3% once franking credits are included.

The yield is modest, however, the consistency is not, with the bank paying a fully franked dividend every year since 1992.

The caveat is valuation. CBA trades on a forward earnings multiple in the mid-20s, and most brokers currently see downside from here.

For long-term investors, time in the market is more important than timing the market. However, for those seeking short-term gains, CBA shares carry significant valuation risks.

BHP Group Ltd (ASX: BHP)

BHP offers a very different kind of income.

The company's dividend is explicitly variable, tied to a payout ratio rather than a fixed target, so it tends to rise and fall with commodity prices.

CommSec estimates a FY26 dividend of $2.10 per share, a yield of around 3.6%, with copper being the swing factor.

For the first time in BHP's history, copper contributed more than half of the group's underlying EBITDA in the first half of FY26.

Partly as a result, BHP shares soared 62% across FY26, which is why brokers now see only single-digit upside, with the consensus target sitting near $61.44.

Telstra Group Ltd (ASX: TLS)

Telstra is the most defensive of the three.

Mobile and broadband connections are tied to non-discretionary spending, which gives the telco unusually stable earnings through the economic cycle.

Analysts forecast a FY26 dividend of 21 cents per share, equating to a grossed-up yield of about 5.3%.

One change income investors should note is franking. Telstra's interim dividend was 90.5% franked rather than fully franked, marking the first time since 1999 that it has not paid a fully franked dividend.

The company also lifted its on-market buy-back from up to $1 billion to up to $1.25 billion, which should support earnings per share alongside the dividend itself.

A closer look at recent earnings

All three companies delivered growth in their most recent half-year results.

CBA reported cash net profit of $5,445 million, up 6%, and lifted its interim dividend 4% to $2.35 per share.

BHP grew revenue 11% to US$27.9 billion, underlying EBITDA 25% to US$15.5 billion, and attributable profit 28% to US$5.6 billion. The company declared a fully franked interim dividend of US 73 cents per share, up 46% and equivalent to a 60% payout ratio.

Telstra grew total income 0.2% to $11.8 billion, with operating profit up 4.7% to $4.4 billion and net profit up 9.4%. Telstra also provided FY26 underlying EBITDA guidance of between $8.2 billion and $8.4 billion.

Foolish takeaway: building income from ASX dividend shares

None of these three will out-yield a term deposit on cash alone over the next 12 months.

What they offer instead is franking credits, dividend growth, and ownership of businesses that should be considerably larger in a decade.

Held together, they also spread that income across banking, resources and telecommunications.

Each company responds differently to the same interest rate cycle. ASX dividend shares like these still deserve a place alongside cash for long-term investors.

The post 3 ASX dividend shares for income while the cash rate sits at 4.35% appeared first on The Motley Fool Australia.

The real difference appears when those purchases continue for years, and the returns start earning returns of their own.

So, what could that monthly habit eventually become?

Building towards a 9% return

For this example, I will assume the portfolio earns an average return of 9% per annum, with dividends reinvested.

That figure is not guaranteed. Share market returns can vary significantly from year to year, and investors will experience falls along the way.

Still, I think 9% is a reasonable long-term target for a portfolio built around diversified exchange-traded funds (ETFs) and quality ASX shares.

I would consider making a broad fund such as the iShares S&P 500 ETF (ASX: IVV) a core holding. It gives investors access to hundreds of major US companies across technology, healthcare, financial services, consumer goods, and industrials.

The Vanguard Diversified High Growth Index ETF (ASX: VDHG) could provide an even broader foundation by spreading money across Australian shares, international markets, emerging economies, and a smaller allocation to defensive assets.

Investors comfortable with greater volatility could add the Betashares Nasdaq 100 ETF (ASX: NDQ), which places more weight on companies benefiting from artificial intelligence, cloud computing, semiconductors, software, and digital commerce.

Which ASX shares could help?

I would also consider selected ASX shares capable of growing earnings over many years.

Breville Group Ltd (ASX: BRG) has room to expand its premium appliance brands across international markets, while Goodman Group (ASX: GMG) is building data centre infrastructure in locations where land and power are difficult to secure.

Nextdc Ltd (ASX: NXT) offers another route into rising demand for computing capacity. Its facilities support cloud services, artificial intelligence, cybersecurity, and the increasing volume of data moving through the economy.

Cochlear Ltd (ASX: COH) could add healthcare exposure through a business serving people with hearing loss, while BHP Group Ltd (ASX: BHP) provides access to iron ore, copper, potash, dividends, and the resources required for global development.

I would not expect every holding to return exactly 9%. The aim would be for the portfolio as a whole to reach that average over time.

What could the portfolio become?

With $500 invested at the end of every month and an average annual return of 9%, the portfolio could grow to approximately $95,000 after 10 years.

After 20 years, it could reach around $320,000.

The effect of compounding becomes much clearer from there. After 30 years, the balance could rise to approximately $860,000.

Continuing for 40 years could produce around $2.1 million, while 50 years could take the portfolio to roughly $5.1 million!

These estimates assume monthly compounding and exclude brokerage, fees, and tax.

The later figures look so much larger because the portfolio eventually contributes far more growth than the monthly deposits. Time allows each earlier investment to keep compounding while new money continues entering the market.

Foolish takeaway

Investing $500 a month in ASX shares could create a substantial portfolio, but the biggest results require patience.

I would build around diversified ETFs, add quality companies with clear growth opportunities, reinvest the income, and continue buying through both strong and weak markets.

The first decade may feel gradual. But over longer periods, compounding can completely change the outcome.

At an average return of 9%, a regular $500 investment could eventually grow into several million dollars.

The post What could $500 a month in ASX shares actually turn into? appeared first on The Motley Fool Australia.

From 1 July 2026, the annual non-concessional contributions cap rose from $120,000 to $130,000.

This change flows through to the bring-forward rule, lifting the maximum three-year contribution from $360,000 to $390,000.

For anyone planning a large one-off contribution, an extra $30,000 of headroom is something to take advantage of.

What changed in superannuation on 1 July

Three numbers moved at the same time.

The concessional cap increased from $30,000 to $32,500, the non-concessional cap rose to $130,000, and the general transfer balance cap rose to $2.1 million.

All three increases are indexed to wages or prices, which is why they tend to move together rather than in isolation.

So, what is the transfer balance cap? The transfer balance cap sets the total superannuation balance thresholds that determine whether you can make after-tax contributions at all.

How the bring-forward rule actually works

The bring-forward rule lets eligible people under 75 use up to three years of non-concessional cap in a single financial year.

Rather than being held to $130,000, you can contribute up to $390,000 at once.

That is useful if you have sold an investment property, received an inheritance, or are making a final push in the years before retirement.

You do not apply for the arrangement. Instead, it triggers automatically the moment your non-concessional contributions exceed the annual cap in one financial year, which is why some people trigger it without meaning to.

Once triggered, the clock runs for three financial years regardless of whether you use the full amount.

The superannuation balance test that sets your limit

How much you can bring forward depends on your total superannuation balance at 30 June of the previous financial year.

The ATO sets out the tiers as follows: If your balance was below $1.84 million, you can access the full three years and contribute up to $390,000.

Between $1.84 million and $1.97 million, you get two years and a $260,000 limit.

Between $1.97 million and $2.1 million, you are held to the standard $130,000 annual cap.

At $2.1 million or above, your non-concessional cap is nil.

Those thresholds moved up alongside the transfer balance cap, which means some people who were locked out entirely last financial year are eligible to contribute again this year.

The trap that catches people out

Indexation does not apply once you are already inside a bring-forward period.

Your cap is locked at the amount that applied in the year you triggered it.

So, if you started a three-year arrangement in 2024-25 or 2025-26, you remain capped at $360,000 until that period expires.

It is an easy assumption to get wrong, and exceeding your cap means dealing with excess contributions tax and an amended assessment.

One further change is worth noting.

Division 296 also commenced on 1 July 2026, applying an additional tax to earnings attributable to total superannuation balances above $3 million.

Anyone contributing large sums while sitting near that threshold should factor this into their decision.

Foolish takeaway

Rather than investing in ASX blue chips like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), investors should pay attention to how they can optimise their superannuation.

Bigger caps are good news, but they reward planning rather than enthusiasm.

The two questions to answer before contributing are the following: What was your total super balance on 30 June, and have you already triggered a bring-forward period?

Get both right and the new limits give you meaningfully more room to compound wealth inside super.

Earnings there are generally taxed at 15% rather than at your marginal rate, great news for investors serious about their retirement.

The post The bring-forward rule just got bigger. Here's what that means for your superannuation appeared first on The Motley Fool Australia.

Brokers have indicated continuing confidence in several ASX 200 shares this week.

Let's check them out.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $55.06, up 2.7% today.

Mineral Resources was among the 5 best ASX 200 mining shares of FY26 for share price growth.

Morgans reiterated its buy call on the miner with a 12-month price target of $68.

This suggests a potential 24% upside ahead.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is $15.24, down 0.9% today.

UBS reiterated its buy rating on Lynas Rare Earths shares with a price target of $22.75.

This implies potential capital gains of 47% ahead.

BHP Group Ltd (ASX: BHP)

The BHP share price is $60.62, up 1.4% today.

Morgan Stanley reaffirmed its buy rating on the market's largest ASX 200 mining share.

The broker has a 12-month target of $67.50, which suggests a potential 12% upside ahead.

Charter Hall Group (ASX: CHC)

The Charter Hall share price is $22.80, up 1.4% today.

Jefferies reiterated its buy rating on the real estate investment trust (REIT) yesterday.

The broker has a 12-month price target of $33.82.

This implies a potential near-50% upside ahead.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is $8.46, up 0.2% today.

UBS renewed its buy rating on IAG shares with an $8.80 target.

This implies potential capital growth of 4% for the ASX 200 financial share.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $32.34, down 4.5% today.

Wisetech shares were among the 5 biggest fallers on the ASX 200 in FY26.

Bell Potter reiterated its buy rating on WiseTech shares today with a $71.75 target.

This implies potential capital gains of more than 120% ahead.

Westgold Resources Ltd (ASX: WGX)

The Westgold Resources share price is $4.83, down 0.5% today.

UBS reaffirmed its buy call on the ASX 200 gold share with a 12-month target of $7.75.

This suggests a potential 60% upside ahead.

Zip Co Ltd (ASX: ZIP)

The Zip share price is $2.71, down 2.5% today.

UBS renewed its buy rating on Zip shares this week.

The broker raised its 12-month price target from $3.10 to $4.10.

This suggests more than 50% upside ahead.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is $10.15, down 0.1% today.

Citi reiterated its buy rating on Qantas shares and increased its target price from $10.40 to $11.40.

This implies a potential 12% upside ahead for the ASX 200 airline share.

The post 9 ASX 200 shares with refreshed buy ratings this week appeared first on The Motley Fool Australia.

A common misconception is that investors need to invest millions of dollars (or more) to make it worth it.

The reality is that you could earn a good passive income off a portfolio of around $100,000.

But what could that passive income actually look like?

Let's break it down.

How much could I earn off a $100,000 ASX share portfolio?

The easiest way to calculate your passive income is by multiplying your total portfolio value by your dividend yield.

The tricky part is that the answer varies widely depending on the dividend yield of your portfolio.

For example, $100,000 x 3% = $3,000 per year in dividend payments.

But if your portfolio has a dividend yield of around 6%, your passive income will be double the size. That's because $100,000 x 6% = $6,000 per year in dividend payments. 

And so on. As your dividend yield increases, the passive income you can earn from your $100,000 portfolio also increases.  

These figures are based on cash dividends before any tax or franking credit benefits.

Of course, this type of money isn't going to become a primary income stream, but it'll certainly help create an extra buffer.

Which ASX shares could earn me $3,000 per year in dividends?

To earn an annual passive income of around $3,000, your portfolio will need to yield around 3%.

A 3% dividend yield is very achievable, and there is a wide range of high-quality ASX dividend shares that pay out around that level. 

For example, major blue chips like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) pay around the 3% mark. As do long-standing ASX dividend players like Washington H. Soul Pattinson and Co Ltd (ASX: SOL), ASX healthcare giant CSL Ltd (ASX: CSL), and Coles Group Ltd (ASX: COL).

What ASX shares could help me earn around $6,000 per year in dividend payments?

To earn an annual passive income of around $6,000, your portfolio will need to yield around 6%.

This is a little higher than the average across the index, but there are still plenty of options available.

For example, long-standing ASX dividend payer APA Group Ltd (ASX: APA) pays around 6%. Metcash Ltd (ASX: MTS) also pays around a 6% yield, as does energy provider AGL Energy Ltd (ASX: AGL).

What about if I wanted to earn $10,000 per year in dividends? Is that possible?

Technically, yes, although your portfolio would need to average a dividend yield of around 10%. 

There are options around this level, but they generally come with higher risk.

Some good high-yielding ASX shares are IPH Ltd (ASX: IPH) and non-bank lender Liberty Financial Group Ltd (ASX: LFG). Meanwhile, GQG Partners Inc (ASX: GQG) yields even higher, at around 16%.

Of course, it's important to note that, ideally, you want to build a portfolio comprising a mix of different yielding shares for diversification, rather than a portfolio of just one stock.

The post How much could a $100,000 ASX share portfolio pay in dividends? appeared first on The Motley Fool Australia.

But even at the current price, I think the mining giant still has plenty going for it.

Here are three reasons I would buy BHP shares today.

The valuation still looks good

BHP shares are trading around $59.76.

According to CommSec consensus estimates, the company is expected to generate earnings per share of $3.51 in FY26 and $3.63 in FY27.

That puts the shares on a price-to-earnings ratio of approximately 17 times FY26 earnings and 16.5 times FY27 earnings.

BHP is no longer the bargain it was when commodity sentiment was weaker and the shares were trading much lower. At current levels, I still think investors are paying a fair price for a business with high-quality assets and a positive long-term outlook.

The dividend adds another reason to consider the shares.

CommSec forecasts dividends per share of $2.18 in FY26 and $1.95 in FY27. Based on the current price, that represents forward dividend yields of around 3.6% and 3.3%.

Those dividends will move with commodity prices and earnings, so I would not treat them as guaranteed. Even so, they could provide a solid income contribution while investors wait for BHP's growth investments to deliver.

The outlook is increasingly tied to copper

BHP's earnings mix is changing.

Copper contributed more than half of the company's underlying earnings during the first half of FY26, showing how important the commodity has already become to the group.

I think that exposure could become even more valuable over the next decade.

Copper is needed for electricity networks, renewable energy, data centres, transport, manufacturing, and the continued digitalisation of the global economy. Developing new mines can take many years, which gives established producers with large, low-cost operations a strong starting position.

BHP produced around 2 million tonnes of copper for the second consecutive year in FY26 and continues to progress growth options across Escondida, Spence, South Australia, and other regions.

Iron ore should remain a major source of cash flow, supported by BHP's large Western Australian operations. That cash can help fund future copper developments and the company's move into potash.

The Jansen project in Canada is expected to begin potash production in 2027. Costs and project execution will require close attention, although the commodity could eventually give BHP exposure to rising food demand and agricultural productivity.

BHP can improve portfolio diversification

I think owning some resources exposure can strengthen a long-term ASX portfolio.

Mining shares respond to commodity prices, global industrial activity, currency movements, and infrastructure investment. Those forces can produce returns that look very different from banks, supermarkets, healthcare companies, or technology shares.

That does not mean BHP will perform well during every market downturn. Commodity cycles can be brutal, and earnings can change quickly when prices fall.

However, a measured resources allocation can give a portfolio another source of growth and income.

If I were choosing one ASX mining share for that role, BHP would be my first choice. Its scale, asset quality, balance sheet, and growing copper exposure make it a stronger all-round option than relying on a smaller producer tied to one project or commodity.

Foolish takeaway

At $59.76, BHP shares are no longer priced like an overlooked bargain, although I still think the valuation provides room for attractive long-term returns.

The company's earnings base is gradually shifting towards copper, while iron ore continues generating cash and potash could open another substantial source of growth.

For investors wanting resources exposure as part of a diversified portfolio, I think BHP shares are worth buying today and holding through the commodity cycle.

The post 3 key reasons to buy BHP shares today appeared first on The Motley Fool Australia.

When the bell rang on the ASX at 4pm, the shares were up around 2.5% at $59.76 each.

The increase means the ASX mining giant's shares have now risen nearly 31% over the year-to-date, and are up around 44% from 12 months ago.

BHP's share price gains over the past couple of years is one thing attracting many investors.

But the shares are also a very popular option for investors searching for passive income.

It's not hard to see why. The blue-chip major is currently the largest stock on the ASX by market capitalisation, it has a consistently strong operational performance, and therefore, a long history of paying fully-franked dividends to shareholders.

But what if you wanted to generate $10,000 of passive income from BHP shares every year? What exactly would that entail?

Let's crunch the numbers.

What passive income does BHP pay its shareholders?

First, we need to understand what dividends the mining giant pays 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. 

Based on the latest consensus forecasts, BHP is expected to pay a fully-franked dividend of A$2.148 per share in FY26. Based on the current share price, that translates to a forward dividend yield of around 3.6%.

It's not the highest dividend yield, but it represents the company's stability and consistency.

How many BHP shares do I need to buy to generate $10,000 in passive income?

Using the figures above, in order to generate $10,000 in passive income from BHP shares alone, an investor would need to buy 4,655 shares.

How much would that cost?

At the time of writing, BHP shares are changing hands for $59.76.

This means that to buy the 4,655 shares I need for $1,000 of passive income, I would need to invest around $278,000.

That's certainly not a small amount. But it could be worth it in the long run.

Not only would I be getting a nice paycheck every six months, but there is potential for capital returns too.

And also don't forget, that entire amount wouldn't need to be invested all in one go. 

Is this a good time to buy into BHP? Expert analysts are on the fence. According to Market Index data, eight out of 10 brokers currently have a hold rating on the ASX bank shares. 

The post How many BHP shares do I need to buy for $10,000 of passive income? appeared first on The Motley Fool Australia.

But could Australia's largest mining company repeat that performance and triple in value again by 2036? While predicting a decade of share price returns is impossible, BHP has several powerful long-term trends working in its favour.

Here are three reasons the mining giant could potentially deliver another market-beating run.

Demand for copper could drive the next growth phase

BHP has historically been known as a major iron ore producer, with its Western Australian operations generating billions of dollars in profits during periods of strong steel demand.

However, the future growth story of BHP shares is increasingly linked to copper. Copper is a critical commodity for electrification, renewable energy, electric vehicles, artificial intelligence infrastructure, and global power networks. As economies transition towards lower-carbon energy systems, demand for copper is expected to rise significantly.

The mining giant has been positioning itself for this trend, including its acquisition of OZ Minerals in 2023, which strengthened its exposure to copper and other future-facing commodities.

If copper prices remain elevated and BHP successfully expands production, the commodity could become a major earnings driver over the next decade.

The asset base could keep generating cash

One of BHP's biggest advantages is the quality and scale of its global operations. The company owns some of the world's largest and lowest-cost mining assets, including its Western Australian iron ore operations, Olympic Dam copper-gold project, and Jansen potash development in Canada.

Low-cost producers typically have a major advantage through commodity cycles because they can remain profitable when weaker competitors struggle.

That financial strength has allowed BHP shares to consistently return billions of dollars to shareholders through dividends and share buybacks.

If commodity demand remains healthy, BHP's ability to generate strong free cash flow could continue supporting shareholder returns well into the future.

Long-term resource demand could provide a tailwind

The world is becoming increasingly resource-intensive. Population growth, urbanisation, infrastructure investment, artificial intelligence, and energy security are all expected to support demand for commodities.

Even as the global economy changes, the need for raw materials remains essential. Data centres require enormous amounts of electricity and copper wiring, while renewable energy projects require significant quantities of metals. BHP's scale means it is positioned to benefit from these long-term structural trends.

Of course, there are risks. Commodity prices are cyclical, China remains a major source of demand uncertainty, and large mining projects require significant capital investment.

A threefold return over 10 years would also require strong execution from management and favourable commodity conditions.

However, BHP has already demonstrated its ability to create substantial shareholder wealth over long periods. If copper demand accelerates, its growth projects deliver, and commodity markets remain supportive, another decade of strong returns may not be out of the question.

The post BHP shares have tripled in the past 10 years. Could history repeat itself over the next decade? appeared first on The Motley Fool Australia.

BHP has been an excellent dividend pick over the last decade, with the ASX mining share benefiting from various times of higher iron ore prices. Even an iron ore price of US$100 per tonne can allow it to make good earnings.

The company's main commodities are iron ore and copper, though it also produces coal and is building a potash project in Canada called Jansen.

Following the company's recent valuation decline, I think it's worthwhile to consider the ASX mining share.

Dividend projection

According to the forecast on Commsec, the business could deliver a relatively pleasing dividend payout for shareholders.

The business is projected to pay an annual dividend per share of A$2.148 in the 2026 financial year. At the time of writing, this translates into a forward grossed-up dividend yield of 5.4%, including franking credits.

That's not the biggest dividend yield on the ASX and the BHP dividend yield has been higher in recent years. That's partly because the BHP share price has gone up so much in recent times, it's (still) up 25% this year and up 47% in the past 12 months.

The higher the share price goes, the lower the dividend yield, assuming the dividend payment stays the same.

Is the BHP share price a buy?

There's much more to the appeal of a business than just the passive income on offer.

The valuation also needs to make sense; otherwise, capital losses could offset the passive dividend income.

The latest update from the ASX mining share was its operating update for the period ending 30 June 2026.

Its most important commodities are iron ore and copper, so I'll focus on those.

In the three months to June 2026, copper production was 491.9k, up 3% quarter-over-quarter but down 5% year-over-year. Iron ore production was 68.1mt, up 8% quarter-over-quarter, but down 3% year-over-year.

What was perhaps even more interesting was the guidance it gave. BHP produced 1.95mt of copper in FY26, but only expects between 1.65mt to 1.8mt of copper in FY28 – a sizeable decline. FY27 iron ore production is expected to be between 260mt to 272mt, down from 264.7mt in FY26.

Lower copper production is not ideal, given its plans to ramp up production in the coming years to take advantage of strong demand.

Even so, both the copper price and iron ore price are at strong enough levels that the business can generate strong profits. However, at the current elevated BHP share price, I'm not sure it's an attractive buy.

Broker analysts seem to have a similar view. According to CMC Invest, of 14 recent ratings on the ASX mining share, two were buys and 12 were holds. The average price target is $59.08, suggesting only a slight rise (at the time of writing) over the next 12 months.

There are quite a few other ASX shares I'd rather buy for dividends.

The post Is the BHP share price a buy for its 5% dividend yield? appeared first on The Motley Fool Australia.

The BHP share price soared 62% in FY26 to finish at $59.40 on 30 June.

That was a spectacular run for the Australia's largest company.

The question now is whether the shares can keep climbing in FY27.

Let's take a look.

What drove BHP shares higher in FY26

Two forces did most of the heavy lifting.

First, commodity prices ran hot: the copper price rose 18% over FY26 and hit a record US$6.60 per pound in May.

Iron ore prices also climbed by around 7%.

Second, investors rotated heavily into mining stocks.

That combination pushed BHP shares to a new high in FY26.

Yet there is a bigger story here: BHP is now the world's largest copper producer.

Copper made up more than half of the company's underlying EBITDA in the first half of FY26. Copper is essential to electrification, data centres, and the broader energy transition. All of these are global megatrends that can be expected to only intensify in future years.

For the first time in BHP's history, copper earnings exceeded those of iron ore.

Can BHP shares keep climbing?

After such a big run, the easy gains may be behind us.

Most brokers are now sitting on the fence.

Morgans recently reiterated a hold rating and lifted its target from $54.90 to $59.80. Macquarie also has a hold rating with a $60.20 target. Overall, the broker consensus target sits near $61.44.

Based on recent prices, that implies only modest single-digit upside.

The dividend still appeals, though. CommSec estimates dividends of $2.10 per share in FY26, a yield of around 3.6%.

BHP's balance sheet also remains strong, with low net debt.

However, not everything is smooth sailing. A review of the Jansen potash project in Canada resulted in a hefty cost blowout.

There is also the ongoing concern around industrial action at BHP's Pilbara iron ore operations.

Investors will get more clarity when the company reports its FY26 results on 18 August.

Foolish takeaway

BHP shares have had a brilliant run.

Copper's growing role in the global economy also gives investors a long-term tailwind.

But after a 62% gain, brokers see only limited near-term upside.

For patient investors, the dividend and copper leverage may still appeal.

Just don't expect BHP shares to repeat their FY26 heroics every single year.

The post BHP shares soared 62% in FY26. Can they keep climbing? appeared first on The Motley Fool Australia.

Prices move, projects disappoint, and yesterday's market favourite can quickly lose its shine.

Even with those uncertainties, one ASX miner stands above the rest for me. That is BHP Group Ltd (ASX: BHP).

A strong foundation in iron ore

BHP still earns substantial cash from its Western Australian iron ore operations.

Iron ore may lack the excitement attached to newer commodities, yet it provides BHP with a huge production base, established infrastructure, and assets capable of generating strong margins when market conditions are favourable.

That cash flow supports dividends, funds new projects, and gives management more flexibility during weaker commodity markets.

Scale alone does not guarantee good returns, especially when mining companies become too enthusiastic with capital. However, BHP can invest through cycles that may force smaller competitors to slow down or abandon projects.

I think that financial strength provides a solid foundation for everything else the company is building.

Copper is changing the business

The most exciting part of BHP's portfolio in my opinion is copper.

During the first half of FY26, copper contributed 51% of underlying earnings before interest, tax, depreciation, and amortisation, making it the group's largest earnings contributor.

That is a significant change for a company traditionally associated with iron ore.

Copper demand could keep rising as electricity networks expand and investment flows into renewable energy, data centres, transport, manufacturing, and urban infrastructure. Bringing new supply online can also take many years, which may support attractive economics for established producers with large, low-cost assets.

BHP already owns interests in major operations such as Escondida, Spence, and its South Australian copper assets. It is also working on expansion pathways and future options that could increase production through the 2030s.

I prefer that position to betting on a junior miner that still needs to finance, permit, construct, and successfully ramp up its first major project.

BHP gives investors copper growth from a much stronger starting point.

Potash adds another direction

The Jansen project in Canada will move BHP into potash, a fertiliser ingredient linked to crop yields and global food production.

First production from Stage 1 is expected in mid-2027.

Jansen could eventually become a large, long-life operation, giving BHP an earnings stream driven by different forces from iron ore and copper.

The project has also reminded investors that large mining developments rarely follow a perfect plan. Costs have increased, while Stage 2 has been delayed and become more expensive.

Management will need to show that the finished operation can justify the amount of shareholder capital being committed.

Even with those concerns, I like the strategic logic. A successful potash business would broaden BHP's portfolio and give it another area where scale could become a lasting advantage.

Why BHP shares are my pick

Every mining investment comes with commodity, operational, political, and project risks.

For me, BHP offers the best balance. It has iron ore assets generating cash today, copper operations becoming increasingly central to earnings, and a potash business that could support growth for decades.

The company also has the balance sheet, technical expertise, infrastructure, and global relationships needed to develop large projects that would be beyond the reach of many competitors.

Foolish takeaway

I would choose BHP shares because its future is becoming broader at the same time as its existing assets continue supporting the business.

Iron ore gives the company financial strength, copper provides an attractive growth runway, and potash could open another substantial source of earnings.

There will be disappointing projects and weaker commodity markets along the way. That comes with owning any miner.

Across a full cycle, I think BHP has the strongest collection of assets and growth options available to ASX investors. That is why it remains my preferred ASX mining share.

The post Why I think BHP is the best ASX mining share appeared first on The Motley Fool Australia.