Tom Reese/Paul Rubillo, Dividend.com
BHP Billiton (BHP) just delivered a big quarter in which revenue for the year jumped 25.3% to $59.47 billion. The company gave an upbeat outlook on commodity prices, saying China’s voracious appetite for raw materials can compensate for a global slowdown.
Management stressed its $150 billion hostile bid for Rio Tinto offers tremendous value as well as a great way to minimize cost pressures that would decline if the both companies merged.
The Bottom Line
We had removed the company from our ''Recommended'' list on July 17 at a price of $71.55, based on a drop in commodity prices we felt would begin to accelerate. Our stance there hasn’t changed, and despite BHP’s positive outlook, we would still remain cautious and avoid the shares at this level. The company has a dividend yield of 1.78%, based on Friday’s closing stock price of $65.22.
BHP Billiton Limited (BHP) is not a recommended dividend stock at this time, holding a Dividend.com rating of 3.0 out of 5 stars.
Tom Reese and Paul Rubillo are senior editors at Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news and analysis, including ''Best Dividend Stocks,'' as well as a detailed explanation of the Dividend.com ratings system.
