BHP and RIO dividend impact
It’s not a pretty picture for the outlook for the iron ore price. If you’re a sandgroper like me, you’re probably thinking about putting your house up for sale and moving East! (No, it could never be that bad!😁)
It might not be so bad for the two major Aussie iron ore producers, though, suggest UBS. BHP’s dividend is likely to be lower than it was in 2023, but it’s still going to pay out a whopping US$3.5 billion in dividends – and that's just for the current June half. Rio’s payout is likely to add around US$3.1 billion to shareholders’ coffers.
BHP’s final FY24 dividend should be US$0.69 cents, says UBS - well down from FY23’s corresponding US$0.80 cents. This means for the whole of FY24, BHP would have paid out a total of US$1.41 or $2.10 Australian at current exchange rates ($0.67). This puts BHP on a dividend yield of 5.0% for shareholders that held through FY24.
In contrast to BHP, UBS tips RIO’s final FY24 dividend is going to increase. RIO is going to pay a final FY24 dividend of US$1.93, the broker says, up from the US$1.77 it paid for the second half of FY23. RIO’s total FY24 dividend therefore would be US$4.51 or $6.73 Australian, putting it on a FY24 dividend yield of 5.9%.
I suggest both dividend yields remain robust compared to the S&P ASX 200 forecast FY24 dividend yield of around 3.5%. Both dividends are also expected to be fully franked. $BHP Group Ltd (BHP.AU)$ $Rio Tinto Ltd (RIO.AU)$
It might not be so bad for the two major Aussie iron ore producers, though, suggest UBS. BHP’s dividend is likely to be lower than it was in 2023, but it’s still going to pay out a whopping US$3.5 billion in dividends – and that's just for the current June half. Rio’s payout is likely to add around US$3.1 billion to shareholders’ coffers.
BHP’s final FY24 dividend should be US$0.69 cents, says UBS - well down from FY23’s corresponding US$0.80 cents. This means for the whole of FY24, BHP would have paid out a total of US$1.41 or $2.10 Australian at current exchange rates ($0.67). This puts BHP on a dividend yield of 5.0% for shareholders that held through FY24.
In contrast to BHP, UBS tips RIO’s final FY24 dividend is going to increase. RIO is going to pay a final FY24 dividend of US$1.93, the broker says, up from the US$1.77 it paid for the second half of FY23. RIO’s total FY24 dividend therefore would be US$4.51 or $6.73 Australian, putting it on a FY24 dividend yield of 5.9%.
I suggest both dividend yields remain robust compared to the S&P ASX 200 forecast FY24 dividend yield of around 3.5%. Both dividends are also expected to be fully franked. $BHP Group Ltd (BHP.AU)$ $Rio Tinto Ltd (RIO.AU)$
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