AUS
NZ
UK
CA
USA
IND
The share prices of BHP Group Ltd and CSL Ltd have seen notable movements in 2024, making them intriguing options for those keeping an eye on the market.
BHP Group Ltd (ASX:BHP)
BHP Group Ltd, formerly known as BHP Billiton, has seen its share price decline by 21.4% since the beginning of 2024. Founded in 1885, BHP is a diversified natural resources company with a wide range of operations including mineral exploration, production, and a recent move into fertilizers.
BHP’s operations are categorized into three main focus areas:
- Copper and Related Minerals: Includes gold, uranium, silver, and zinc.
- Iron Ore: A significant part of BHP’s production portfolio.
- Coal: Both metallurgical and energy coal.
Known for its reliable dividend payments, BHP is a staple in many ASX share portfolios. Its strong dividend yield, currently around 6.42%, is higher than its 5-year average of 6.14%, indicating that BHP shares are offering a better return compared to historical norms.
BHP is regarded as a blue-chip stock due to its mature business model and robust financial performance. For FY23, BHP reported a return on invested capital (ROIC) of 28.10%, well above the 10% threshold considered strong for established businesses. Revenue has compounded at 22.7% in recent years, reflecting significant growth and sustainability.
CSL Ltd (ASX:CSL)
CSL Ltd, a leading global biotechnology company, is approaching its 52-week high, with the share price just 1.8% shy of this peak. CSL focuses on developing and delivering innovative medicines that support public health and aid those with severe medical conditions.
The company operates through three primary business units:
- CSL Behring: Specializes in blood plasma products.
- CSL Seqirus: Offers flu-related products and pandemic-related services.
- CSL Vifor: Produces products for iron deficiency and renal care.
CSL has established a strong reputation as a reliable and consistent dividend payer over many years. As healthcare costs continue to rise, CSL’s role in providing critical medicines makes it an indirect beneficiary of this trend.
For a quick assessment of BHP’s share price, examining the dividend yield can be insightful. The current dividend yield of BHP shares is approximately 6.42%, which exceeds its historical average of 6.14%. This suggests that BHP shares are offering a higher yield compared to their historical performance.
Both BHP and CSL offer different strengths for investors. BHP’s significant dividend yield and strong financial metrics make it a key player in the resources sector, while CSL’s proximity to its 52-week high and consistent dividend payouts highlight its solid position in the biotechnology sector.
