Short answer: BHP and Codan may suit some beginners, but neither is automatically a safe or suitable first share. Both expose you to the risks of owning an individual company, and their businesses respond to different market forces. Consider either only if you understand the company, can tolerate a fall in value, have an appropriate time horizon and will hold it as part of a diversified portfolio—not because its latest dividend or results look attractive.
This is general educational information, not personal financial advice. Suitability depends on your circumstances, including your financial goals, capacity for loss, risk tolerance and existing investments.
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What owning either share means
A share is an ownership interest in one company. Its market price can fall, and you could lose some or all of the money invested. A dividend is not guaranteed: a company can reduce or stop payments. ASIC’s Moneysmart guidance says that “Shares are not an appropriate investment for everyone” and that “All shares carry risk.” Read Moneysmart’s guidance on investing in shares (updated 1 September 2026).
For a beginner, the central question is not which name sounds safer. It is whether the business risk, possible price swings and investment time horizon fit your circumstances—and how much exposure you already have to similar companies, sectors, countries and asset types.
How BHP and Codan differ
BHP is a diversified resources company, so its earnings are exposed to commodity prices and broad economic conditions. BHP said 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. Its portfolio mix does not remove its exposure to commodity and market movements.
Codan’s FY2026 results show strong reported growth, but those headline numbers alone do not establish how its business may perform in future or whether its shares are attractively priced. To understand its risks and outlook, read its full annual report and current company announcements, including information on business segments, acquisitions, operations and capital allocation.
What the latest reported results and dividends show
The figures below are company-reported FY2026 outcomes, not forecasts. Dividends and operating results can change, and past performance does not establish future returns.
| Company | FY2026 reported information | What it does—and does not—tell you |
|---|---|---|
| BHP | Final dividend: US$0.99 per share. Total dividend distribution for the year: US$1.72 per share. | The 99 US cents is the final dividend; US$1.72 is the total distribution stated by BHP for FY2026. Neither figure guarantees future income. |
| Codan | Revenue: A$875.0 million, up 30%; EBIT: A$244.1 million, up 67%; NPAT: A$175.2 million, up 69%. Annual dividend: 48.5 cents per share, fully franked, up 70% versus FY2025. | These are Codan-reported FY2026 results and dividend information, not independent forecasts or evidence of future returns. |
For BHP’s figures and portfolio context, see its FY2026 annual reporting. Codan’s reported results and investor materials are available through its investor information.
Rank #3
- Comes with secure packaging
- Easy to read text
- It can be a gift option
Strong results do not by themselves show that a share is a good buy. A company can grow while its shares are expensive relative to expected future earnings, or disappoint if conditions change. Review valuation and outlook alongside results rather than treating growth or a large dividend as a recommendation.
Key risks to understand before buying
BHP: commodity and wider market exposure
BHP’s annual report identifies commodity-price volatility and factors that can affect markets and operations, including global economic and geopolitical conditions, trade restrictions and tariffs, industrial activity, technology changes, interest rates and exchange-rate movements. These factors can influence the business and its reported results; they do not make future share-price direction predictable. A diversified portfolio within one resources company is not the same as diversification across investments.
Rank #4
Codan: investigate beyond the headline growth
The FY2026 headline results are only a starting point for understanding Codan. Read the full annual report and current announcements to assess its segment performance, integration of acquisitions, capital allocation, operating risks and outlook. The reported revenue and profit growth does not, by itself, establish the company’s full risk profile or a fair share price.
Both: company-specific risk and changing dividends
Either share can fall for reasons specific to the company as well as broader market conditions. A dividend may be cut or stopped, and a past payment does not tell you what a future payment will be. Moneysmart recommends looking at company results, debt, cash flow and dividend history when assessing shares.
Best Value
Questions to answer before you invest
- Why this company? Be able to explain how its business makes money and what could cause its results or share price to disappoint.
- Can you afford a loss? Consider the amount you could lose without undermining essential spending or financial goals.
- When will you need the money? Shares can fall at a time when you need to sell; avoid investing money you may need soon.
- What do you already own? Check your direct investments and super for overlapping company, sector, country or asset-class exposure.
- Is the price reasonable for the outlook? Review valuation in relation to expected growth and risk; recent growth or a dividend is not enough to judge value.
- What do the accounts and announcements say? Review results, debt, cash flow, dividend history and current outlook, rather than relying on one headline figure.
How diversification fits in
Holding investments across companies, industries, countries and asset types can reduce the effect of one weak holding on your overall portfolio. It cannot eliminate investment risk, prevent every loss or make an unsuitable investment suitable. Before adding BHP or Codan, consider whether it would make your overall investments too dependent on one company or type of business.
If you decide to buy shares directly
Direct share investing generally requires a broker. Compare brokerage and other costs before placing an order: for a small trade, fees can take up a substantial share of the amount invested. Make sure you understand the order and costs before proceeding. Using a broker does not make either share suitable or remove the risks of investing.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
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