What is the current dividend yield on Brickworks shares?

The ASX 200 staple is currently trading with an attractive dividend yield.

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Key points

  • The Brickworks share price has slumped nearly 29% in 2022 to close at $17.61 on Thursday
  • Though, there is a bright side. Its dip means the company is now trading with a 3.5% dividend yield
  • Additionally, Brickworks' dividends are fully franked

Brickworks Limited (ASX: BKW) shares are an ASX staple. The company’s been listed in Australia for around 60 years and is housed in the S&P/ASX 200 Index (ASX: XJO). Brickworks shares are also a favourite among dividend investors.

But is it currently trading with an eye-catching dividend yield? Let’s take a look.

Do Brickworks shares offer a 3.5% dividend yield?

As of Thursday’s close, the Brickworks share price is $17.61. That’s almost 29% lower than it was at the start of 2022 and 26% lower than it was this time last year.

But despite the company’s falling share price, its dividends have remained strong over the last 12 months.

Brickworks paid investors a 40-cent final dividend for financial year 2021 in November.

It also handed shareholders a 22-cent interim dividend in April after the first half of this financial year saw its profits surge 269%.

Additionally, the company’s dividends are fully franked. That means some investors might see additional benefits from the payouts at tax time.

So, as the company has paid out 62 cents of dividends over the last 12 months, it’s currently trading with a trailing dividend yield of 3.52%.

For those wondering, Brickworks no longer hosts a dividend reinvestment plan (DRP).

It introduced a DRP in 2020 to preserve liquidity during the onset of the COVID-19 pandemic but dropped it in March 2021.

So, what else might pique investors’ interest in the company? Here’s a brief rundown of how it operates.

Brickworks’ revenue comes from its four segments: Building products Australia, building products North America, property, and investments.

The first two are easy to explain. They manufacture building materials for the Australian and North American markets.

Simultaneously, Brickworks’ property division looks to maximise the value of land previously used to craft building products. Sometimes, the land is rezoned and sold for residential property. Other times, it’s transferred to the company’s 50%-owned Joint Venture Industrial Property Trust.

Finally, the company’s investments segment houses Brickworks’ 39.4% interest in fellow ASX 200 dividend share Washington H Soul Pattinson and Co Ltd (ASX: SOL).

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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