BHP Announces USD 0.50 Dividend for H2 2024, Payable March 27
BHP Group Limited has announced a fully franked dividend of USD 0.50 per share for the half-year ending December 2024, payable on March 27, 2025, with multiple currency payment options and a Dividend Reinvestment Plan available.
- USD 0.50 per share fully franked dividend declared
- Dividend payable on March 27, 2025, with ex-date March 6
- Dividend relates to financial period ending December 31, 2024
- Shareholders can elect payment in AUD, USD, GBP, NZD, or ZAR
- Dividend Reinvestment Plan (DRP) available with no discount
BHP’s Dividend Announcement in Context
BHP Group Limited has confirmed a fully franked ordinary dividend of USD 0.50 per share for the six-month period ending December 31, 2024. This payment underscores the company’s ongoing commitment to returning value to shareholders amid a complex global economic backdrop. The dividend will be paid on March 27, 2025, with the critical ex-dividend date set for March 6 and the record date on March 7.
Currency Flexibility Reflects Global Shareholder Base
Notably, BHP offers shareholders the option to receive their dividend payments in multiple currencies, including Australian dollars (AUD), US dollars (USD), British pounds (GBP), New Zealand dollars (NZD), and South African rand (ZAR). This flexibility caters to its diverse international investor base and mitigates currency risk for recipients. Shareholders must submit their currency election by March 11, 2025, to benefit from this option, otherwise, payments default to the currency aligned with their registered address or banking instructions.
Dividend Reinvestment Plan Details
BHP’s Dividend Reinvestment Plan (DRP) remains fully operational for this dividend, allowing shareholders to reinvest their dividends into additional shares without any discount on the purchase price. Shares will be acquired on-market shortly after the dividend payment date, with the DRP price calculated as the average of actual transaction prices. This approach provides a straightforward reinvestment mechanism without diluting existing shareholders.
Franking and Tax Implications
The dividend is fully franked at a corporate tax rate of 30%, meaning shareholders benefit from franking credits that can offset their tax liabilities. This is a positive signal of BHP’s strong earnings and tax position, reinforcing its financial health and capacity to sustain shareholder returns.
Looking Ahead
While the dividend announcement is in line with expectations, the actual Australian dollar equivalent of the dividend will be confirmed on March 11, 2025, once exchange rates are finalized. Investors should monitor currency movements closely, as fluctuations could impact the effective dividend yield for those electing payment in AUD or other currencies.
Bottom Line?
BHP’s steady dividend and currency options highlight its global shareholder focus, but currency volatility remains a watchpoint.
Questions in the middle?
- How will currency fluctuations impact the AUD equivalent dividend for shareholders?
- What is the anticipated shareholder uptake of the Dividend Reinvestment Plan this cycle?
- Could BHP’s dividend policy shift if commodity prices or global economic conditions change?
