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…

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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.

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

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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.

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