BHP Declares Fully Franked USD 0.60 Dividend for H1 2025
BHP Group Limited has updated its dividend notification, confirming a fully franked USD 0.60 per share dividend for the first half of 2025, with detailed currency conversion rates and multiple payment options.
- USD 0.60 per share fully franked dividend for H1 2025
- Dividend payable on 25 September 2025
- Multiple currency payment options including AUD, GBP, NZD, ZAR, and USD
- Dividend Reinvestment Plan (DRP) available with on-market share purchases
- Updated currency exchange rates provided for dividend conversions
Dividend Update and Currency Details
BHP Group Limited has issued an update to its dividend notification originally released on 26 August 2025, providing clarity on the currency exchange rates and local currency conversions applicable to its ordinary dividend for the six months ending 30 June 2025. The company confirmed a fully franked dividend of USD 0.60 per share, payable on 25 September 2025.
This update is significant for shareholders across multiple jurisdictions, as BHP offers dividend payments in a range of currencies including Australian dollars (AUD), British pounds (GBP), New Zealand dollars (NZD), South African rand (ZAR), and US dollars (USD). The announcement includes detailed exchange rates used to convert the USD dividend into these local currencies, ensuring transparency and predictability for investors.
Dividend Reinvestment Plan and Payment Mechanics
BHP’s Dividend Reinvestment Plan (DRP) remains applicable for this dividend, allowing shareholders to reinvest their dividends into additional shares rather than receiving cash. Shares under the DRP will be purchased on-market shortly after the dividend payment date, with the purchase price reflecting the average of actual market transactions. Notably, there is no discount applied to the DRP share price, and there are no minimum or maximum participation limits.
Shareholders who do not participate in the DRP will receive their dividend payments in cash, with the currency determined by their election or default arrangements based on their registered address or banking instructions. Those who have not provided direct credit details will receive their dividends by cheque in Australian dollars.
Implications for Investors
The fully franked nature of the dividend means that it carries Australian franking credits at the corporate tax rate of 30%, which can be valuable for Australian resident shareholders seeking to offset their tax liabilities. The multi-currency payment options and transparent exchange rates reflect BHP’s global shareholder base and its commitment to accommodating diverse investor needs.
Investors should note that the foreign exchange rates provided are estimated and based on benchmark central bank rates as of early September 2025. Actual currency conversions at payment may vary slightly depending on market conditions. The update also underscores the importance of timely currency election submissions to ensure dividends are paid in the preferred currency.
Overall, this dividend update reinforces BHP’s steady commitment to returning capital to shareholders while managing the complexities of a global investor base. The clarity on currency arrangements and DRP mechanics provides a solid foundation for shareholders to plan their investment strategies ahead of the payment date.
Bottom Line?
As BHP prepares to pay its fully franked dividend, investors will watch closely how currency fluctuations and DRP participation shape returns.
Questions in the middle?
- Will actual foreign exchange rates at payment differ materially from the estimates provided?
- How will participation rates in the DRP compare to previous dividend cycles without a discount?
- Could currency election preferences shift significantly given current global economic conditions?