With mining stocks facing turbulence, BHP stands out as among ASX best long term dividend stocks. Not only does it assure some sort of stability, it is one of the growing companies to invest in.
BHP Group Limited (ASX: BHP)
BHP has delivered a strong start to FY2025, with production increases across key commodities underscoring operational resilience and growth potential. Copper output rose 4%, driven by higher grades and recoveries at Escondida, while Western Australia Iron Ore (WAIO) production grew 3%, supported by port debottlenecking. In steelmaking coal, production (excluding divested Blackwater and Daunia mines) jumped 20%, reflecting stabilization in the business.
The company has bolstered its copper growth prospects with a proposed 50/50 joint venture in Argentina with Lundin Mining to advance a significant global copper discovery. In parallel, the acquisition of Filo Corp. and the development of the Filo del Sol and Josemaria projects, subject to regulatory approvals, further consolidate BHP’s position in copper—a critical metal for electrification and the energy transition. In Canada, the Jansen Stage 1 potash project is 58% complete, with first production expected in approximately two years. Potash is a key pillar of BHP’s strategy to meet growing global demand for food security and sustainable agriculture.
BHP is one of the high quality dividend paying stocks, as it continues to deliver robust shareholder returns. A final dividend of 74 US cents per share (53% payout ratio) reflects the strength of its balance sheet and disciplined capital allocation. For FY2024, total dividends reached $7.4 billion, taking cash returns to over $42 billion since July 2021. This highlights the company’s commitment to sustained shareholder value across cycles. Global trends—including urbanization, infrastructure development, and the energy transition—are driving demand for BHP’s diversified portfolio of critical commodities. The company forecasts a 70% growth in copper demand by 2050, supported by electrification, renewable energy deployment, and digital infrastructure expansion. Iron ore and steelmaking coal will remain essential for steel production, while nickel and potash will gain prominence due to electric vehicles and sustainable agriculture.
BHP’s disciplined exploration efforts continue, with $104 million spent on minerals exploration and evaluation in Q1 FY25. The company maintains a robust portfolio of world-class assets aligned with long-term structural trends and resilient to market volatility. BHP’s total global economic contribution reached $49.2 billion in FY2024, encompassing employment, community investments, supplier payments, and taxes. These contributions underscore BHP’s commitment to delivering social and financial value to stakeholders. Looking ahead, BHP’s strategic positioning, operational excellence, and capital discipline position it to capitalize on the growing demand for critical metals and minerals, driving long-term growth and value creation for shareholders.
Source: Company’s Report
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