BHP Share Price: How Many Shares Do You Need for $1,000 Passive Income?

BHP Group Ltd (ASX: BHP) shares have seen significant growth in the last year, increasing by over 50% at the time of writing. The company's commitment to providing investors with a minimum dividend payout ratio of at least 50% of earnings has resulted in pleasing payouts for shareholders.

The FY26 result reported revenue grew 15% to US$58.8 billion, underlying operating profit (EBITDA) rose 27% to US$32.9 billion, and underlying attributable profit increased 30% to US$13.2 billion. This allowed the business to announce US$8.7 billion of cash returns to shareholders, including a FY26 final dividend per share of US 99 cents.

The current forecast on Commsec suggests a payout of A$2.07 per BHP share in FY27, which translates into a potential grossed-up dividend yield of around 4.5%, including franking credits. The company's increasing focus on copper may lead to rising payouts in the long term due to growing demand and limited supply.

To achieve $1,000 of passive income via BHP shares in FY27, an investor would need to own either 484 shares excluding franking credits or 339 shares with franking credits attached. This high share price may make it worth considering other investment opportunities that offer better value.