How to buy BHP shares
Learn about the ASX:BHP share price and dividend payments and follow these four steps to buy BHP shares.
BHP is one of the most popular and most widely held ASX-listed stocks, with an impressive track record of profits and paying dividends to shareholders.
Follow the four steps below to buy BHP shares. Further in the guide you can learn about BHP’s current and historical share prices, its dividend payments and what to consider before buying shares in the company.
Here’s how to buy BHP shares
Follow these easy steps to buy BHP shares. If you already have a share trading account, go straight to step three.
1. Compare share trading accounts.
Use our table below to compare online share trading accounts. Look for one with low brokerage fees and access to the markets you want (eg, the ASX plus any international markets). When you’ve picked one, click “Go to site” to be securely redirected to the online application.
2. Complete the online application.
You’ll need to provide your personal contact details, tax file number and proof of identity (your driver’s licence, Medicare card and passport details will do).
3. Add money to your cash account.
You’ll receive a linked cash account for free when you open your share trading account. Transfer enough money into the linked cash account to buy your shares, remembering to include any brokerage costs. Trades on the ASX must be at least $500 in value.
4. Place your order.
Within your online share trading portal, create a new order to buy BHP shares. You’ll need to fill out the ASX code (BHP), select your target price (or select "Buy at market" if you’re not fussed) and how many shares you’d like to buy.
Once you’ve confirmed your order, your BHP shares will be bought when your price target is hit. If you’ve selected to buy at market, this will happen right away. You’ll receive a confirmation note from the broker when you’ve purchased the shares successfully.
BHP is the biggest mining company in the world by market capitalisation, as well as one of the largest companies in Australia. The mining giant was originally founded in Melbourne, Victoria where its head office still remains today.
- Full name: BHP Billiton Limited
- ASX ticker code: ASX:BHP
- Industry: Metals and mining
- ASX listing date: 1885
- Market cap: $167.11 billion (2018)
- Current CEO: Andrew Stewart Mackenzie (2018)
- Key competitors: Rio Tinto, Newcrest Mining, Alumina Limited
BHP historical share prices
The below table includes BHP share prices for six-month intervals between 2016 and mid-2018. Looking at the price difference between these years, you can see the share price has gradually increased. It’s also helpful to see the high and low price on any given day, as this is a good indicator of how volatile the stock is. Because BHP’s share price doesn’t change too much in a day, it’s not an overly volatile stock, which is often a good thing for new investors.
|Date||ASX:BHP price (AUD high)||ASX:BHP price (AUD low)|
|31 July 2018||$34.98||$34.58|
|2 Jan 2018||$29.75||$29.50|
|25 July 2017||$24.65||$24.43|
|3 Jan 2017||$25.45||$24.96|
|6 July 2016||$18.79||$18.57|
|4 Jan 2016||$18.19||$17.73|
BHP dividend information
BHP has a solid history of paying fully-franked dividends to shareholders. BHP pays dividends twice a year in the form of an interim and final dividend. The interim dividend is announced before the company releases its full-year earnings and the final dividend is announced after. Because the shares are fully franked, it means BHP has already paid tax on those earnings so the investor won’t need to pay tax on those earnings again.
The below table lists the BHP dividend payment information between 2015 and 2018. Note that this is historical dividend information and not an indicator of future dividends.
|Payment date||Dividend per share (AUD)||Franking|
|25 Sept 2018||$0.85||100%|
|27 Mar 2018||$0.70||100%|
|26 Sept 2017||$0.54||100%|
|28 Mar 2017||$0.53||100%|
|20 Sept 2016||$0.19||100%|
|31 Mar 2016||$0.21||100%|
|29 Sept 2015||$0.88||100%|
|31 Mar 2015||$0.81||100%|
Should you buy BHP shares?
Here’s what to consider before deciding to buy BHP shares.
- The BHP share price. Do your research and determine what you think is a fair price for BHP shares and what you’re comfortable paying for them. Read the news, look for expert analysis on the price and consider looking at the price targets set by major brokers. If you think they’re overvalued, you might want to wait for a dip in the price before buying.
- BHP’s dividend. Are you looking for shares that pay a high dividend or do you want to invest for capital growth over time (or are you looking for both)? If you’re purely looking for a high-paying dividend stock, there are others that pay higher dividends than BHP. However, they might be more volatile.
- BHP’s competitors. Do you think BHP’s competitors like Rio Tinto pose a threat to the company? Read the annual reports of some key competitors to see how they compare to BHP and what their growth plans include.
- Future market conditions. Is there an increasing need for mining resources or is this a dying market? Read into BHP’s growth and expansion plans in Australia and international markets.
- BHP’s leadership team. Familiarise yourself with BHP’s CEO, COO, CFO and board of directors. You should be confident that this team has the best interests for shareholders top-of-mind.
If you’re interested in buying shares in other companies but need a bit more help, you can check out our guide for 7 steps to buying shares online.
Or if you’re keen to buy shares in major international brands like Netflix or Google, we have a handy guide for that, too.
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