2022 was a transformative year for the Big Australian after spinning out their Petroleum assets and looking to takeover copper giant Oz Minerals (OZL). It’s one of a number of deals BHP has done over the past decade to refocus it’s assets, going all the way back to the spin out of South 32 (S32) in 2015. The prudent work of management has clearly benefitted shareholders with the stock hitting $50/sh on Monday combined with strong dividend returns. We are underweight resources in the portfolio and will continue to hold BHP as result given the yield investors expect to receive, particularly into the upcoming interim dividend in February with the market looking for a yield of over 6% in the next 12 months, fully franked.
- BHP may be in our short/medium-term sell zone but over the coming years we see the “Big Australian” trading significantly higher while paying a healthy dividend along the way.
MM is bullish towards BHP medium term
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