BHP vs COL: Which ASX Share is Better for Passive Income?

Here is a detailed comparison between BHP Group and Coles Group for investors assessing passive income, growth potential and risk according to their investment objectives.

BHP Group Limited (ASX: BHP)

BHP Group Limited (ASX: BHP), on 18 August 2026, announced its June-ending FY26 results, reporting 2Mt of copper production for the second consecutive year, further strengthening its position as the world’s largest copper producer.

Revenue for the year increased to US$58.8 billion in FY26, while attributable profit increased by 9% to US$9.8 billion.

The copper segment delivered the strongest results, with record underlying EBITDA of US$18 billion. This represented 54% of the group’s underlying EBITDA, along with an underlying EBITDA margin of 70%.

WAIO remained the company’s lowest-cost major producer for the seventh year, while BMA has also shown production growth over the past two years, increasing the strategic importance of both operations.

Looking ahead, BHP’s main focus is on expanding production, with copper at the centre of its growth strategy. The company is targeting copper production of 2.5 Mtpa by the mid-2030s.

This gives BHP exposure to potential long-term growth in copper, although its performance can also be affected by global uncertainties and commodity price volatility.

Coles Group Limited (ASX: COL)

Coles Group Limited (ASX: COL), on 25 August 2026, published its June-ending FY26 results, reporting revenue growth of 2.8% to $45.6 billion.

Group EBIT excluding significant items increased 9.9% from the previous year to $2.3 billion, while NPAT excluding significant items increased to $1.25 billion.

The company operates a network of supermarkets and liquor stores across Australia, with its e-commerce platform emerging as another growth driver.

Net capital expenditure for FY26 stood at $1.4 billion. This included the renewal of 71 supermarkets and 141 liquor outlets, along with 13 new supermarkets and 16 new liquor stores established during the year.

Coles entered FY27 with strong momentum across its supermarket and liquor segments, while placing greater focus on e-commerce as a key growth driver for the year.

For investors comparing Coles with other income-focused ASX companies, best dividend stocks to buy in 2026 can provide a broader look at shares offering passive-income potential.

BHP vs COL: Which One to Buy?

BHP Group and Coles Group are both large-cap ASX stocks, but their businesses and risk profiles are quite different.

BHP has a market capitalisation of $304.03 billion and a fully franked dividend yield of 4.04%, while Coles Group has a market capitalisation of $31.34 billion and a fully franked dividend yield of 3.33%.

BHP’s ROE for FY26 stood at 24%, with a P/E ratio of 22.02, compared with Coles Group’s ROE of 28.12% and P/E ratio of 28.55%.

Coles Group offers relatively stable growth potential due to its defensive retail operations. Its supermarket and liquor businesses provide an established operating base, while e-commerce is becoming an increasingly important growth driver.

BHP, meanwhile, provides greater exposure to commodity-driven growth, with copper becoming an increasingly important part of its future production strategy. However, the company is also more exposed to global uncertainties and commodity price volatility.

For investors looking for stable, long-term returns, Coles Group might be a better fit for a more defensive passive-income approach. Investors with a higher risk appetite and seeking stronger return potential may consider BHP Group.

Investors focused on growing their income over time can also explore dividend growth stocks, where increasing shareholder payouts form an important part of the investment case.

Overall, BHP and Coles provide two different approaches to passive income: Coles combines its dividend profile with a defensive retail business, while BHP combines dividend income with greater exposure to commodity-driven growth.