Exploring Investment Potential: James Hardie and BHP Show Promise

2 min read | March 20, 2025 12:57 PM AEDT | By Team Kalkine Media

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Exploring Investment Potential: James Hardie and BHP Show Promise — Image source: shutterstock

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Highlights

James Hardie (ASX:JHX) exhibits robust growth metrics.

BHP Group (ASX:BHP) maintains a solid dividend track recod

Both companies present a compelling narrative for portfolio consideration.

Despite a modest dip since the beginning of 2025, James Hardie Industries plc (ASX:JHX) remains a standout in the building solutions sector, offering a diverse range of high-demand products like fibre cement and gypsum. With over 5,200 employees and operations across multiple continents, James Hardie's commitment to innovation and safety in building materials makes it a notable candidate for investor watchlists.

Fibre cement's popularity stems from its non-combustible properties, resistance to damage from water and termites, durability, and low maintenance needs. These factors contribute to James Hardie's sustained appeal in the construction industry.

On the other side, BHP Group Ltd (ASX:BHP), a veteran in the natural resources sector, has been a pillar of reliability and a frequent choice for investors seeking stable dividends. Known for its extensive mining operations, which cover essential commodities like copper, iron ore, and coal, BHP has been a fixture in Australian investment portfolios, also buoyed by its historical dividend yield of 6.9% per annum since 2020.

A closer look at James Hardie reveals impressive growth dynamics: a revenue increase of 10.6% annually since 2021, reaching $3,936 million in FY24. This period also saw net profits rise from $263 million to $510 million, with a robust return on equity (ROE) of 29.4%, signaling efficient asset utilization.

BHP, often regarded as a mature, blue-chip company, shows a healthy balance sheet with a debt-to-equity ratio of 45.3%, indicating a stronger equity base relative to debt. Its ROE of 19.7% in FY24 suggests that BHP continues to generate considerable returns on shareholder equity, comfortably above the 10% benchmark for established businesses.

Both James Hardie and BHP Group represent distinct but equally compelling investment narratives within the ASX landscape. James Hardie's growth trajectory underscores its potential in a booming global construction market, while BHP's enduring presence and dividend reliability make it a cornerstone of any diversified investment portfolio. Together, these companies provide intriguing opportunities for those looking to enhance or diversify their investment strategies on the ASX.

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