BHP will pay its lowest interim dividend in eight years and the bare minimum allowed under its shareholder returns policy as weakness in the Chinese property sector drove down demand for steel.

Shareholders will receive a US50¢ interim dividend after a weaker-than-expected $US5.08 billion ($7.98 billion) underlying half-year profit on Tuesday. The result was 23 per cent lower than underlying profits for the same period last year and below the $US5.38 billion expected by the market.