How to Buy BHP Billiton

BHP Billiton (NYSE Stock symbol BHP) is a global mining, oil and gas company headquartered in Melbourne, Australia and with a major management office in London, United Kingdom. It’s the world’s largest mining company measured by revenue.

BHP Billiton was created in 2001 through the merger of the Australian Broken Hill Proprietary Company Limited (BHP) and the Anglo-Dutch Billiton plc. The result was a dual-listed company. The Australian-registered BHP Billiton Limited, which is the majority partner, has its primary listing on the Australian Securities Exchange and is the largest company in Australia measured by market capitalization.

The UK-registered BHP Billiton Plc has its primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalization of approximately £39.6 billion as of 23 December 2011, making it the 9th-largest company on the London Stock Exchange.

What is BHP Billiton Stock worth Today?

BHP is primarily traded on the London Stock Exchange (LSE) and the Australian Securities Exchange (ASE). When combined together they give a market capital of around $120 billion, making them one of the top thirty largest companies in the world.

BHP Billiton is currently trading in the $75 to $80 dollar range on the New York Stock Exchange (NYSE). This is down from a high of $100 in late 2011 so is showing good value. They have just completed a cost reduction program which resulted In the closure of a number of unprofitable mines.

BHP Billiton Stock History Chart

BHP Billiton Stock Price History

BHP Billiton stock is currently trading a little off its high and showing good value. The price was hit hard during the recession of 2008-09 as all stocks were but they’ve recovered well, largely because of increased consumption of its products from China.

This along with the closure of some less profitable mines and the selling off of others means the company is in fine shape going forward and fully able to capitalize on an upturn in western markets when it materializes.

BHP Billiton Stock Split History

BHP Billiton stock has been split only once in it’s 150 year history. It was a 2:1 split on June 26th, 1996 with the stock trading at $57.63 the day before and $28.50 the day after, resulting in a small loss of -1.09%, but that doesn’t tell the whole story.

Besides stock splits there have been other distributions of value back to shareholders. BHP spun off its steel maker (OneSteel) to shareholders in 2000, and its steel fabricator in 2002. BHP shareholders received one share for each five BHP shares, so you could count that as two 1:5 splits.

Will BHP Billiton Stock Split Again?

With the current share price trading around $80.00 a stock split doesn’t seem to be very likely in the near future. Further sell offs are likely however, BHP is focusing its efforts on a few key minerals, so any mines outside of those are prime targets to be either spun off as separate companies or sold to another buyer.

Does BHP Billiton Stock Pay a Dividend?

BHP Billiton pays a dividend every six months, for the last few years this has amounted to an annual yield of 3.3%. Whilst this is not a great return, it’s much better than you would receive from the bank and ahead of what most other companies are paying at the moment, and don’t forget about the growth you’ll get from owning the stock.

Should You Invest in BHP Billiton Stock?

BHP Billiton is currently undervalued compared to its rivals, which makes them a good buy right now. Asia is a strong market and is showing no signs of slowing down, so growth should continue for the foreseeable future.

They’re a fairly safe unfashionable stock at the best of times, but its stocks like these that recover the most from a downturn. The stock is a good buy to hold bet for the next two to three years and will have no problem delivering if the economy continues its recovery.

Since they’re already considered to be undervalued, now would seem like a good time to buy. With the outlook for Western markets starting to look up there’s sure to be an increased demand for BHP Billiton’s products in the near future which will put even more pressure on prices.