The mining stock, among ASX best long term dividend stocks, after being under selling pressure, is now showing signs of gaining strength. Potentially one of the best growth stocks to buy now, could be considered for long term investment.
BHP Group Limited (ASX: BHP)
BHP Group Limited (ASX: BHP) Jansen project exemplifies the company’s strategic positioning for long-term success in an increasingly volatile global landscape. The past year has been marked by geopolitical and macroeconomic challenges, including humanitarian crises in the Middle East, Ukraine, and Sudan, rising protectionism threatening global trade, and significant policy shifts following key elections worldwide. These external pressures, combined with inflation, uneven economic recovery in China, and commodity price volatility, have tested the company’s resilience. Internally, BHP made the difficult decision to temporarily suspend its Nickel West operations and the West Musgrave project, underscoring its disciplined approach to capital allocation. Despite these headwinds, BHP remains committed to creating enduring shareholder value through a portfolio of high-quality, resilient assets operated with exceptional efficiency. The company’s strategic shift toward “future-facing commodities” positions it to benefit from megatrends like decarbonization, electrification, and population growth. BHP has solidified its leadership in copper—a critical material for renewable energy, electric vehicles, and data centers—and is developing a strong position in potash, a key input for sustainable agriculture and food security.
In steelmaking, BHP has focused on higher-quality coals, preferred by customers for decarbonization-aligned steel production. Its iron ore business remains a cornerstone, bolstered by its status as the world’s lowest-cost major producer. These efforts ensure that BHP is well-positioned to meet rising global demand for infrastructure and urbanization. Operationally, BHP continues to deliver robust financial results. FY24 Underlying EBITDA reached US$29 billion, reflecting strong margins and consistent cash flow generation. This marks the eighth consecutive year with margins exceeding 50% and average net operating cash flows surpassing US$20 billion annually. These results highlight the durability of BHP’s portfolio despite sector cyclicality.
Capital allocation remains a cornerstone of BHP’s strategy. The company prioritizes safety, maintenance capital, balance sheet strength, and a minimum 50% dividend payout ratio under its disciplined Capital Allocation Framework. In FY24, BHP, one of the high quality dividend paying stocks, declared dividends totalling US$7.4 billion, contributing to a five-year total shareholder return of approximately 15% per annum and over US$50 billion in cash dividends—more than any other miner globally. Beyond shareholder returns, BHP emphasizes creating value within its operating communities. Its diversified portfolio and operational excellence provide a solid foundation for navigating near-term challenges while capitalizing on long-term growth opportunities driven by global trends. BHP’s deliberate portfolio reshaping underscores its ability to adapt and thrive, ensuring it remains a leader in the evolving resources sector.
Source: Company’s Report
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