BHP Stock: Is This ASX Blue Chip Still a Buy for Investors?

BHP’s exceptional financial performance and exposure to lucrative commodities support its long-term growth potential backed by its current valuation and healthy fully franked dividend yield.

BHP Group (ASX: BHP)

One of Australia’s largest and most important mining companies and its large scale of operations and high-quality assets support its ability to generate high returns on capital. Such strengths make BHP a good choice for long-term investors who seek exposure to global commodities and the infrastructure needed for economic growth.

BHP has a current market capitalisation of $303.83 billion and its current annual fully franked dividend yield is 4.05% and its Price/Earnings ratio is 22.05. BHP has a dividend policy to pay a minimum of 50% of underlying attributable profit at each reporting period.

Impressive FY2026 financial performance

The company in FY2026 reported revenue of US$58.76 billion which was a 15% increase from US$51.26 billion in FY2025. Profit after tax attributable to BHP shareholders also rose by 9% to US$9.83 billion.

BHP’s underlying attributable profit increased from US$10.16 billion to US$13.20 billion and underlying EBITDA rose 27% from US$25.98 billion to US$32.95 billion over the same period. Underlying basic earnings per share improved from 200.2 US cents to 260.0 US cents and underlying return on capital employed also increased from 20.6% to 26.1%.

The company achieved an underlying EBITDA margin close to 60% helped by the fact that its copper business recorded an underlying EBITDA margin of approximately 70%. BHP also reported that its average margin has been above 50% for more than two decades.

Copper has played a particularly important role in FY2026 as it for the first time contributed to more than half of the group’s underlying EBITDA. BHP produced approximately 2 million tonnes of copper for the second consecutive year and copper revenue increased by US$6.5 billion to US$29 billion.

Higher realised copper prices were the main reason for this improvement and copper South Australia increased production to 321,000 tonnes. Antamina also achieved record copper production of 152,000 tonnes.

Promising growth opportunities:

BHP’s growth rationale is backed by copper as it is expected to benefit from electrification, renewable energy, electric vehicles, digital infrastructure and urbanisation. The company expects global copper demand to rise from approximately 34 million tonnes per year today to more than 50 million tonnes by 2050. BHP is already the world’s largest copper producer and its existing operations provide a strong base for further production growth. Potash could also become a major contributor to BHP’s earnings over the next decade. The Jansen Stage 1 project in Canada was 84% complete and is on track for first production in mid-2027. Potash also can provide diversification because its demand drivers are different from those of copper and iron ore which can potentially create a more balanced earnings base.

The company has a plan to invest more across Minerals Americas and Copper South Australia. Projects such as the Escondida Growth Program and concentrator upgrades could also support future output.

(Source: Company Announcements)