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Australia’s BHP could be in like Flynn

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BHP Group Limited (BHP)

Aussie stocks have been taking over the EasyResearch channel this week and BHP is another cracker of a resource stock to make the Queensland Wagyu taste even better! – EasyResearch

BHP is an extremely well diversified resource play. Personally, I don’t have any investments in resources, so maybe it’s a good option to consider.

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Backdrop and Fundamentals

BHP was founded back in 1885, so they are 135 years old! Talk about standing the test of time while leading the pack in producing copper, iron ore, nickel, metallurgical coal, petroleum and potash. The company is an extremely well diversified resource play. Personally, I don’t have any investments in resources, so maybe it’s a good option to consider.

  • Share price (ASX) = $34.28
  • P/E ratio= 15.35
  • Dividend yield of 5.10%
  • Market cap of $157 Billion.

Nickel is my favorite commodity that BHP Billiton Limited produces. Let’s not forget Elon Musk’s tweet a few months back, “Please mine more nickel.” Nickel is a naturally occurring metallic element and a key ingredient in stainless steel. It’s also a major component in the lithium-ion batteries that are helping the electric vehicle revolution.

Electric vehicles are taking the world by storm, especially in the US, China and European nations and I think that this trend towards EV’s will continue.

I also like Potash as it is most often used in fertilizers, strengthening plants. The global population is increasing, the demand for food is increasing as well, so we need “good plants”.

Petroleum is the only commodity that Billiton produces that does not really attract me.

There is also opportunity in their other commodities as I expect infrastructure spending to increase over the next few years to get the global economy going.

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Informed decisions and opinion

I really like BHP at these levels as a diversification option to commodities, as well as a dividend play. The company is well diversified which is also a big factor luring me in to buy BHP shares along with paying attractive dividends which is a bonus.

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Higgo van Biljon

Easy user, Founder & CEO FinMeUp 

Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Higgo van Biljon, Founder and Chief Executive Officer of FinMeUp as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information (i) contained within this research and (ii) received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.

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