- Even though BHP's true dividend yield is likely closer to 4.4-8.8%, rather than the 11.27% calculated by some sources, these shares still offer an excellent return versus risks.
- Over half of BHP's revenues come from iron ore. Iron ore prices spiked in summer 2021, but have since declined over 70%, to around 2019-2020 levels.
- While iron ore prices could easily fall further, and drag another year of BHP's earnings with it, I see inflationary monetary policy providing a long-term tailwind to BHP dividend.
For further details see:
BHP Group: Get Paid >4% Waiting For Inflation