Short n’ Sweet – Can BHP keep its promises?

Editorial director of Switzer
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There’s a new kid on the yield stock block. Make room for BHP - if CEO Andrew Mackenzie can keep his promises, that is.

Paul Rickard has been following BHP and its increasing dividends for a while now. He reported that he was impressed with its interim result back in February:

  • Underlying EBIT of US$9.2 billion, down 25.5%
  • Capital expenditure of US$6.4 billion, down 23%
  • Free cash flow of US$4.1 billion, up 21%
  • Interim dividend up 5% to 62 US cents per share
  • Net debt down by US$0.8 billion to US$24.9 billion, for a gearing ratio of 22.4%.

Six months ago, Paul pointed out its confidence in its dividend payment and this statement issued by the company - “we remain committed to at least maintain or steadily increase our base dividend in every reporting period”.

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