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Highlights
- Mining companies have performed on a strong note globally in the recent past.
- Rising commodity prices have helped these companies appear attractive to investors.
- This article discusses how BHP, FMG and RIO have fared on the dividend front in the past three years.
ASX-listed mining companies are among the best dividend players across the world. BHP is, in fact, the world’s biggest dividend payer. The mining major has paid record dividends in the past year or two, making it one of the most attractive shares for investors. Rising commodity prices have also helped these companies to increase their earnings.
On this note, let’s see how BHP, FMG and RIO have fared on the dividend front in the past three years:
NOTE: - High dividend-paying shares are not good always. A stock’s dividend yield might be on the higher side due to a significant fall in its stock price, implying financial trouble that could impact its ability to deliver future dividends.
BHP Ltd (ASX:BHP)
In the first half of FY2022, BHP Group declared a record dividend. BHP last paid an interim dividend of AU$2.08 per share on 28 March 2022.
The company’s board recently decided to give its shareholders an in-specie dividend in the form of Woodside Petroleum shares on account of the merger of BHP’s oil and gas portfolio with Woodside. The in-specie dividend was paid on 1 June 2022 and was fully franked.
The company paid fully franked interim dividends worth 99.4 cents per share and 75.46 cents per share on 24 March 2020 and 22 September 2020, respectively.
BHP paid fully franked interim dividends worth AU$1.31 per share and AU$2.72 per share on 23 March 2021 and 21 September 2021, respectively.
Fortescue Metals Group (ASX:FMG)
In the first half of FY22, FMG Metals Group paid an interim dividend of 86 cents per share. It is 70% of 1HFY22 net profit after tax (NPAT) dividend payout.
The company paid fully franked interim dividends worth 76 cents and AU$1 on 6 April 2020 and 2 October 2020, respectively.
Next year, FMG paid fully franked interim dividends worth AU$1.47 and AU$2.11 on 24 March 2021 and 30 September 2021, respectively.
Rio Tinto Ltd (ASX:RIO)
In its half-yearly report for the financial year 2022 (1HFY22), Rio Tinto announced its highest ever dividend to its shareholders.
On 21 April 2022, the ASX-listed miner paid a final dividend of AU$6.63 per share.
The company paid fully franked interim dividends worth AU$3.50 and AU$2.16 on 16 April 2020 and 17 September 2020, respectively.
The mining giant hiked its dividend in 2021, with RIO paying fully franked interim dividends worth AU$5.17 and AU$7.60 on 15 April 2021 and 23 September 2021, respectively.
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