BHP Shareholders Reap Rewards of Copper Price Surge
Investors who bought $10,000 worth of BHP Group Ltd (ASX: BHP) shares five years ago have seen significant returns in both capital gains and passive income. At the time, BHP's shares were trading at $34.87 per share, and an investor could have bought 286 shares with $10,000. Fast forward to today, those same shares are now worth $17,266 due to a price increase of over 50%. However, it's not just the capital gains that have been impressive - the BHP dividend payouts have also seen a significant increase in recent years.
The FY 2026 dividend payouts saw a 41.6% increase from 2025, driven by strong iron ore and copper prices. The company's copper division experienced a 48% year-on-year increase in underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) to US$18.2 billion, with copper contributing 54% of BHP's total underlying EBITDA. This surge in earnings is expected to continue, with copper fundamentals remaining attractive due to growing demand driven by traditional economic growth, energy transition, and digital technologies.
As a result, investors who have held onto their BHP shares since September 2021 would have received $13.583 per share from the last 10 dividend payouts, totaling $3,885 in passive income for an initial investment of $10,000. The company's underlying profit also saw a significant increase, climbing to US$13.2 billion, up 30% from the previous year.