RBC Raises BHP Group Price Target After FY26 Results, Upside Surprise in Dividend

12:47 AM EDT, 08/19/2026 (MT Newswires) -- RBC Capital Markets increased its price target for BHP Group (BHP.L, BHG.JO) as analysts noted the mining company's higher-than-anticipated dividend payout alongside its fiscal 2026 earnings. "BHP posted a strong FY26 result with a higher-than-expected 66% dividend payout (highest since FY22), delivering a 10% dividend beat. Copper was again the focus, providing a 4% divisional beat and contributing 54% to group EBITDA. BHP is now targeting a self-funded 40% increase in organic Copper production during FY26-35 (5% [compound annual growth rate]) with ~US$12bn of cumulative [free cash flow] from Copper during FY27-31. Consensus assumes ~2.1% CAGR copper growth in FY26-35, with the delta likely due to Copper [South Australia] Phase I. BHP's site visit to Copper SA in November should help close this gap," the research firm said Tuesday. For the 12 months ended June 30, BHP Group reported a 15% year-over-year increase in revenue to $58.76 billion, with a 9% rise in attributable profit to $9.83 billion. The board declared a final dividend of $0.99 per share, up from $0.60 per share in the prior fiscal year. This brings the full-year payout to $1.72 per share, against the $1.10 per share previously. "While BHP is executing well on its strategy and has a solid balance sheet, the stock is not 'cheap'. As the world's largest Copper producer, BHP has also potentially benefited from its proxy status as a relatively defensive AI exposure and the recent rotation from Banks to Resources," the note said. Accordingly, analysts increased their price target to AU$60 from AU$57 and reiterated their sector perform rating on the stock.