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Highlights
- BHP Group Ltd shares have declined by 11.5% since the start of 2024, presenting a potential buying opportunity.
- ResMed Inc is just 6.2% away from its 52-week high, showcasing resilience in the healthcare sector.
- Both BHP and RMD shares could be worth monitoring for long-term investment strategies.
The share price of BHP Group Ltd has experienced a notable decline of 11.5% since the beginning of 2024, while ResMed Inc is trading just 6.2% below its 52-week high. This article examines the investment potential of both companies, suggesting reasons to consider adding them to an ASX stock watchlist.
BHP Group Ltd (ASX:BHP)
BHP Group Ltd, originally founded as BHP Billiton in 1885, is a diversified natural resources company. It is involved in the production of commodities essential for energy and manufacturing, and it is expanding its operations into fertilizers. BHP's core business segments focus on mineral exploration and production, particularly in:
- Copper and Related Minerals: This includes gold, uranium, silver, and zinc.
- Iron Ore: A key component of steel production.
- Coal: Both metallurgical and energy coal are produced.
BHP shares are often recognized for their reliable dividend payments and are a staple in many ASX portfolios. For investors with exposure to popular exchange-traded funds (ETFs) or industry superannuation funds, chances are BHP shares are already part of their investment mix.
Insight into ResMed Inc (ASX:RMD)
Founded in 1989 by Peter Farrell, ResMed Inc is a prominent medical equipment company headquartered in San Diego, California, with its roots in Australia. The company specializes in providing cloud-connected continuous positive airway pressure (CPAP) machines for treating obstructive sleep apnea (OSA). Although primarily listed on the New York Stock Exchange (NYSE), ResMed shares are also available on the ASX.
Operating in over 140 countries with a workforce exceeding 10,000, ResMed has two main business units:
- Sleep and Respiratory Care: This division offers leading CPAP machines for sleep apnea treatment and supports patients who require non-invasive or invasive ventilation.
- Software as a Service (SaaS): This unit provides software solutions that enhance out-of-hospital care, improving patient outcomes and reducing healthcare costs.
With a strong digital health network powered by cloud-connected devices, ResMed utilizes its industry-leading hardware, including masks and humidifiers, to drive insights that enhance patient care.
BHP Share Price Valuation
To assess the current valuation of BHP shares, one effective metric is the dividend yield. This yield reflects the cash flow to shareholders and can vary from year to year. As of now, BHP Group Ltd shares offer a dividend yield of approximately 4.89%, which is below the five-year average of 6.86%. This decline may suggest either reduced dividends or an increase in share price. In BHP's case, last year’s dividend was lower than the three-year average, indicating a trend of decreasing dividends.
Given the fluctuations in the share prices of BHP Group Ltd and ResMed Inc, both companies present unique opportunities for investors. With BHP’s diversified portfolio and ResMed’s strong position in the healthcare market, monitoring these stocks could prove beneficial for long-term investment strategies.
