BHP: Iron Ore Spin-Off Might Bring Growth, But Dividends Are Good Enough

  • BHP is undervalued at 14x forward PE with a 5% dividend, offering solid returns even without divestment of iron ore and coal. A potential spin-off of iron ore and coal could unlock significant shareholder value, shifting BHP's focus to copper and potash for future growth. Copper demand is set to rise, and BHP's ramp-up in copper production and new discoveries like Vicuña position it well for long-term upside.