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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Short answer: BHP and Codan may suit some beginners, but neither is automatically a safe or suitable first share. Each is a stake in a single company, so its price can fall and its dividend can be reduced or stopped. Suitability depends on your time horizon, ability and willingness to absorb losses, and how either holding fits with your other investments.
This is general educational information, not personal financial advice. ASIC’s Moneysmart guidance says shares are not appropriate for everyone and that all shares carry risk (Moneysmart, updated 1 September 2026).
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What is different about BHP and Codan?
They are not interchangeable investments. BHP is a large mining company whose earnings are exposed to commodity prices and global conditions. Codan’s FY2026 results provide evidence of strong recent growth, but those results alone do not establish how its earnings or share price will perform next. To compare them, start with how each business makes money and what could cause its results to change.
BHP: mining and commodity exposure
BHP reported that copper contributed more than half of underlying EBITDA for the first time in FY2026, and that it produced approximately 2 million tonnes of copper for the second consecutive year. The company describes its portfolio as deliberately diversified. That mix does not remove exposure to changing commodity markets: BHP’s annual report identifies commodity-price volatility and wider influences such as global economic conditions, geopolitics, trade restrictions and tariffs, industrial activity, technology changes, interest rates and exchange rates (BHP annual reporting).
These are risk factors, not a formula for predicting BHP’s share price. A beginner should understand that strong production or a diversified portfolio does not guarantee stable earnings, dividends or returns.
Codan: examine results and outlook, not growth alone
Codan reported FY2026 revenue of A$875.0 million, up 30%; EBIT of A$244.1 million, up 67%; and net profit after tax (NPAT) of A$175.2 million, up 69%. These are company-reported results, not forecasts and not proof that the shares are attractively priced. Review Codan’s full annual report and current announcements for segment performance, acquisition integration, capital allocation, operating risks and outlook (Codan investor information).
Revenue and profit growth describe what happened in a reporting period. They do not, by themselves, tell you whether the current share price fairly reflects expected future growth and risk.
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Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Do their dividends make them beginner-friendly?
No. A dividend is not guaranteed income, and a recent payment should not be treated as a promise of future payments. Companies can reduce or stop dividends; Moneysmart recommends checking a company’s dividend history alongside its results, debt and cash flow.
Rank #3
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| Company | FY2026 dividend reported | How to interpret it |
|---|---|---|
| BHP | US$0.99 per share final dividend; US$1.72 per share total dividend distribution for the year | These are BHP’s reported FY2026 figures, not a forecast or guaranteed future income (BHP annual reporting). |
| Codan | 48.5 Australian cents per share for the year, fully franked, up 70% versus FY2025 | This is Codan’s reported FY2026 dividend. The increase is historical, not evidence that the rate will recur (Codan investor information). |
Dividend yield also depends on the share price, which can move. Before relying on a dividend, examine its history and whether cash flow and the company’s financial position support it. Tax treatment depends on your circumstances and should not be assumed from the “fully franked” description alone.
Which one is less risky?
The available company figures do not support a reliable ranking of BHP and Codan by risk or value. Their business exposures differ, and a fair comparison would need current, comparable information about valuation, balance sheets, cash flow, earnings outlook and capital allocation. Recent growth or a larger dividend is not enough to identify the safer share.
Rank #4
Compare them using the questions that matter to your portfolio:
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- Business and earnings: What drives revenue and profit, and how sensitive are they to commodity markets, customers, industry conditions or geopolitical events?
- Financial position: What do the latest reports show about cash flow, debt and capital allocation?
- Price and expectations: What growth and risks appear to be reflected in the current valuation?
- Dividend resilience: How variable has the dividend been, and how well is it supported by the business?
- Portfolio fit: Would buying the share add exposure you lack, or concentrate you further in one company, sector or country?
How to judge whether either share fits your situation
A single-company share can lose value, so consider both your financial capacity to take a loss and your emotional tolerance for seeing one. Money you may need soon is generally a poor match for an investment that could fall when you need to sell. Your existing investments matter too, including holdings through superannuation.
Best Value
Before deciding, make sure you can answer these questions plainly:
- Why do I want this particular share rather than a more diversified investment?
- What business or market developments could make my investment thesis wrong?
- How much could I afford to lose without jeopardising near-term needs?
- When might I need this money?
- How would this holding change my exposure across companies, industries, countries and asset types?
- Have I checked the latest company results, debt, cash flow, dividend history, announcements and valuation?
Diversification across companies, industries, countries and asset types can reduce the impact of one weak holding, but it does not eliminate investment risk. If you are unsure whether direct shares fit your needs, consider obtaining advice suited to your circumstances.
If you decide to buy direct shares
Direct share investing generally requires a broker. Compare brokerage and other costs before placing an order; for a small trade, fees can take a relatively large share of the amount invested. The account process and charges vary by provider, so check the broker’s current terms.
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Before buying, check the latest official reports and announcements for both companies. Company outlooks, dividends, prices, valuations and risks can change after FY2026 reporting, and those historical figures should not substitute for current information.
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