Sydney, Feb 20, 2026, 16:56 AEDT — Market’s final bell has sounded.
- BHP finished Sydney trading up 0.2%, closing at A$53.33.
- Brokers bumped up their targets after BHP’s interim numbers topped estimates, though a few remained wary about iron ore and capital spending.
- Next up: the March ex-dividend date, then an operational update slated for April.
BHP Group Ltd edged up 0.2% to A$53.33, holding close to recent highs after Sydney trading wrapped up Friday. Investors sifted through broker commentary following results and eyed upcoming dividend dates. (BHP)
BHP carries serious weight in Australia’s market, both as a miner and as a go-to name for copper and iron ore sentiment. Once its results land and the share price finds its footing, the stock tends to shape expectations for how much room the wider resources sector might have to move.
Attention has veered sharply. Now traders are eyeing copper’s staying power to offset slumping iron ore, while also weighing if those generous cash returns can hold up after investment plans start to hit the books.
RBC Capital Markets bumped up its price target on BHP’s Australian shares, now seeing them at A$55 instead of A$51, but stuck with its “sector perform” rating. The broker cited BHP’s stronger-than-forecast first-half results and said it sees more visibility on copper expansion. Still, RBC warned that rising capital expenses, along with weaker iron ore, could put the squeeze on the miner’s free cash flow in the medium run — that’s the cash available after operating and investment costs. (London South East)
BHP surprised the market with a half-year underlying profit of $6.20 billion—easily topping the Visible Alpha consensus, which was sitting at $6.03 billion. The company also declared an interim dividend of 73 cents per share, translating to a payout ratio of 60%. “They smashed everyone’s expectations from a dividend perspective,” said Andy Forster, portfolio manager at Argo Investments. On deals, chief executive Mike Henry brushed off any sense of urgency, saying the group was “not feeling any burning need to” chase acquisitions. (Reuters)
This week, BHP doubled down on its capital-recycling strategy, announcing a silver streaming agreement with Wheaton Precious Metals. The arrangement gives Wheaton upfront access to a portion of silver produced at Peru’s Antamina mine, in exchange for cash now. BHP pitched the move as “unlocking capital from a non-core commodity,” while Wheaton boss Randy Smallwood pointed out that “quality silver production is becoming increasingly difficult to source.” (Reuters)
Even with bullish sentiment in the mix, a few valuation red flags have started to show. Morningstar analyst Jon Mills stuck with his A$44 fair value call on BHP, noting that elevated copper prices are the big reason the stock’s now above that mark. But pricier iron ore and a firmer Australian dollar are working the other way, tempering those gains. (Morningstar)
Still, things can shift fast. Iron ore sliding further, copper prices slipping, or a fresh surge in spending—any of these could tighten cash flow and leave a stock that’s already rerated facing a less generous market.
The dividend calendar has taken center stage for now. BHP declared an interim dividend of $0.73 per share, scheduled for payment on March 26. Shares will trade ex-dividend on both the ASX and LSE from March 5—the cutoff after which new buyers aren’t entitled to the payout. (BHP)
Looking ahead, BHP’s next scheduled operations update lands April 22, with the miner set to release its operational review for the nine months through March 31, per its financial calendar. (BHP)
