Is bhp a good buy
11/10/2024 03:00am
**BHP's Investment Considerations**:
1. **Financial Performance and Growth**:
- BHP's financials show a net income of $4.3 billion and a diluted EPS of $2.07 for the quarter ending December 31, 2023. However, specific growth rates for revenue, net income, and diluted EPS are not currently available.
- The company's three-year revenue CAGR is -0.7%, indicating a slight decline over the period.
2. **Dividend Yield**: BHP offers a dividend yield of 5.29% as of November 8, 2024, which is attractive for income-seeking investors.
3. **Market Sentiment and Analysts' Views**: Despite the recent decline in share price, BHP is viewed favorably by some analysts. For instance, Bell Potter is bullish on BHP due to its copper exposure and expects a fully franked dividend yield of approximately 4.5% over the next 12 months.
4. **Strategic Partnerships**: BHP's partnership with ABB is strengthening, focusing on industrial automation, electrification, and digitalization, which supports BHP’s global operations and decarbonization efforts.
5. **Institutional Activity**: There has been significant insider buying, with XY Capital Ltd increasing its holdings by 503.6% during the third quarter. This could be a positive signal for the company's future prospects.
6. **Brazil Settlement**: BHP's settlement with Brazilian authorities regarding the Fundão tailings dam collapse provides a resolution for the company, although it may have financial implications.
**Conclusion**: Considering BHP's strong dividend yield, strategic partnerships, and recent insider buying, the company appears to be an attractive investment for those looking for income. However, the negative impact of commodity price volatility on earnings and the slight decline in revenue over the last three years should be taken into account. Investors should weigh these factors against their investment goals and risk tolerance before making a decision. It is also advisable to monitor BHP's financial performance closely, especially in light of ongoing market fluctuations and geopolitical influences.