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How Will BHP’s USD 0.73 Fully Franked Dividend Impact Shareholders?

Materials By Maxwell Dee 2 min read

BHP Group Limited has announced a fully franked ordinary dividend of USD 0.73 per share for the half-year ending December 2025, with multiple currency payment options and a Dividend Reinvestment Plan available.

  • USD 0.73 per share fully franked dividend declared
  • Ex-dividend date set for 5 March 2026, payment on 26 March
  • Dividend payable in USD, AUD, GBP, NZD, and ZAR
  • Dividend Reinvestment Plan (DRP) offered with no discount
  • Currency election available for shareholders

BHP Announces Half-Year Dividend

BHP Group Limited has declared an ordinary dividend of USD 0.73 per share for the six months ending 31 December 2025. This dividend is fully franked, reflecting the company’s ongoing commitment to returning value to shareholders while maintaining a strong tax position. The dividend will be paid on 26 March 2026, with the ex-dividend date set for 5 March and the record date on 6 March.

Multi-Currency Payment Flexibility

In a nod to its diverse shareholder base, BHP will pay dividends in multiple currencies including US dollars, Australian dollars, British pounds, New Zealand dollars, and South African rand. Shareholders can elect their preferred currency by submitting their choice to the share registrar by 9 March 2026. Those who do not provide currency election details will receive their dividends in Australian dollars by cheque.

Dividend Reinvestment Plan Details

BHP’s Dividend Reinvestment Plan (DRP) remains an option for shareholders wishing to reinvest their dividends into additional shares. Notably, the DRP will operate without any discount, with shares purchased on-market shortly after the dividend payment date. This approach avoids dilution and aligns with market pricing, offering shareholders a straightforward reinvestment mechanism.

Tax and Franking Considerations

The dividend is fully franked at a corporate tax rate of 30%, meaning shareholders receive a credit for the tax already paid by BHP. This can be particularly beneficial for Australian investors, as it reduces the overall tax payable on dividend income. The company has confirmed no additional tax components beyond franking credits apply to this dividend.

Looking Ahead

While the AUD equivalent of the dividend and the exact exchange rates for non-USD payments will be confirmed closer to the payment date, this announcement provides clarity on BHP’s capital return strategy for the first half of 2026. Investors will be watching closely to see how currency fluctuations impact the final dividend value in their local currency.

Bottom Line?

BHP’s fully franked dividend and flexible payment options underscore its shareholder-friendly approach amid a complex currency environment.

Questions in the middle?

  • What will be the AUD equivalent of the USD 0.73 dividend once exchange rates are confirmed?
  • How might currency fluctuations affect dividend income for international shareholders?
  • Will BHP maintain this dividend level or adjust payouts in response to commodity market conditions?