The BHP Board has determined to pay an additional amount of 14 US cents per share or US$0.7 billion, taking the interim dividend to 65 US cents per share or US$3.3 billion. This is the second highest ordinary dividend announced and is equivalent to a 63 per cent payout ratio (31 December 2018: 75 per cent).
The dividend policy provides for a minimum 50 per cent payout of Underlying attributable profit at every reporting period. The minimum dividend payment for the December 2019 half year period is 51 US cents per share or US$2.6 billion.
The dividend reflects the solid cash flow generated in the period, caution due to near term market volatility driven by the 2019 coronavirus disease outbreak, trade policy and geopolitics, and their preference for net debt to be at the bottom end of the US$12 to US$17 billion target range.