This hasn't been a good year for mining stocks so far, and both Rio Tinto (RIO) and BHP Group (BHP), formerly known as BHP Billiton, are in the red. BHP, which is the world’s largest mining company. is trading close to its 52-week lows, and its dividend yield has risen to around 5.5%. While the yield is still below what rival RIO offers, it's also much higher than the broader market average, as well as pure-play copper miners like Southern Copper (SCCO) and Freeport-McMoRan (FCX).
But is BHP a buy for its fat dividend yield? We’ll explore in this article.
