The world's largest mining company, BHP Billiton Limited ( BHP ), on Wednesday reported sharply higher first half profits and unveiled $80 billion worth of expansion plans.
The Melbourne, Australia-based company reported first half net income of $10.52 billion, compared with $6.14 billion in the same period a year ago. Revenue surged 39% from last year to $34.17 billion, helped by rising iron ore and copper prices.
BHP said it would doubled its share buyback plan from its previously-announced $4.2 billion level. It expects to complete the new buybacks by the end of 2011.
Instead of looking to take over smaller firms, BHP said it would pour some $80 billion into expansion plans over the next five years. The company also boosted its semi-annual dividend payout to 46 cents per share, up from a prior level of 42 cents.
BHP Billiton shares fell $1.91, or -2%, in premarket trading Wednesday.
The Bottom Line
Shares of BHP Billiton ( BHP ) have a 1.95% dividend yield, based on last night's closing stock price of $94.56. The stock has technical support in the $87-$90 price area. The shares are trading near all-time highs and have little overhead resistance.
BHP Billiton Limited ( BHP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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