The Brickworks (ASX:BKW) share price is now trading on a forecast 2.5% fully franked dividend yield

Investors will be eyeing the company’s upcoming dividend…
The post The Brickworks (ASX:BKW) share price is now trading on a forecast 2.5% fully franked dividend yield appeared first on The Motley Fool Australia. –

The Brickworks Limited (ASX: BKW) share price has gained more than 35% since this time last year. This comes as the building products company continues to navigate its way around the COVID-19 pandemic.

During Tuesday’s market session, Brickworks shares finished 2.12% higher to $24.10.

Why is the Brickworks share price pushing higher?

Investors are pushing the Brickworks share price up despite no market-sensitive news coming from the company since August.

According to its last update, Brickworks noted that operations had been curtailed at a number of its facilities in New South Wales. This is due to the latest outbreak, which has affected brick sales by up to 80% in July.

The partial recommencement of construction activity in August resulted in some improvement. Brick sales remained at 50% when compared to pre-lockdown levels. The knock-on effect is that its storage yards have reached capacity.

The business update sent Brickworks shares south from the time of the release and in the following weeks.

However, with vaccination rates accelerating across Sydney, the state government has signed a partial reopening of businesses. In turn, this would allow Brickworks to resume its operations and service the construction market.

How much is Brickworks forecast to pay in dividends?

With the company scheduled to report its full-year results on 23 September, investors may be wondering about the dividend payments.

Brickworks paid a fully franked dividend of 21 cents per share in April for the first half of FY21. This was slightly above the 20 cents recorded in the prior corresponding period (1H FY20).

Goldman Sachs is forecasting a total FY21 dividend payment of 61 cents, implying a 40 cents per share final dividend payment. This would give Brickworks a fully franked current dividend yield of 2.53%. Not a bad return when including the strong Brickworks share price rise.

It’s worth noting that the company has either maintained or increased its dividend payments consistently over the last 45 years.

Brickworks has a price-to-earnings (P/E) ratio of 11.60 and commands a market capitalisation of roughly $3.6 billion.

The post The Brickworks (ASX:BKW) share price is now trading on a forecast 2.5% fully franked dividend yield appeared first on The Motley Fool Australia.

Should you invest $1,000 in Brickworks right now?

Before you consider Brickworks, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Brickworks wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why the Brickworks (ASX:BKW) share price has beaten the ASX 200 in the last year
2 ASX dividend shares that could provide steady income in retirement

Why the Brickworks (ASX:BKW) share price could still be a buy
Brickworks (ASX: BKW) share price down 5% as operations curtailed
Brickworks (ASX:BKW) share price on watch with US acquisition

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!