There are a number of S&P/ASX 200 Index (ASX: XJO) shares that are known for being dividend shares. One leading name is about to go ex-dividend, but it's not one of the biggest dividend payers around. I'm talking about Brickworks Limited (ASX: BKW) shares.
Brickworks is probably best known for being the largest brickmaker in Australia. It also sells other construction-related goods like concrete products and roofing supplies through Bristle Roofing.
As well, there are other divisions of the business, including an investments segment and industrial property trusts in a joint venture with Goodman Group (ASX: GMG).
The growing cash flow from all of those divisions leads to the business being able to fund higher dividend payments to investors.
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FY22 final dividend payment
After seeing underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rise by 133% to $1.06 billion and underlying profit go up 159% to $746 million, Brickworks decided to grow its dividend again in FY22.
The final dividend went up 3% to 41 cents per share. This brought the total year dividend to 63 cents per share, also an increase of 3%. This compared to underlying earnings per share (EPS) of $4.92, a rise of 158%.
The ex-dividend date is 1 November 2022, which means that today is the last day that new investors can buy shares to be entitled to that dividend. From tomorrow onwards, investors buying new Brickworks shares won't receive the final dividend.
Long-term record
This recent increase to the Brickworks dividend is the latest in a long history of dividend consistency for shareholders.
Brickworks said that its normal dividend has been maintained or increased every year since 1976. In other words, it has been 46 years since the normal dividend was last lowered.
On top of that, the ASX 200 dividend share has grown its dividend almost every year over the past decade.
The Brickworks managing director Lindsay Partridge said:
We are proud of our long history of dividend growth, and the stability this provides to our shareholders.
Over the past 20 years we have increased our dividend at a compound rate of 7.1% per annum.
Outlook
Management is aware of the instability facing the economy but believes that the ASX 200 dividend share is well-positioned. Partridge commented:
Although we are facing an increasingly uncertain outlook, including rising interest rates and recessionary fears, we are confident that Brickworks' diversified portfolio of assets is well-placed to meet any future challenges and continue to deliver strong performance for shareholders. Over the past 12 months, we have built the asset base considerably and paid down debt, resulting in a conservative level of gearing.
There is a significant development pipeline within the industrial JV trust, and the continued development of Oakdale West will drive asset growth over the coming years. The anticipated sale of the balance of Oakdale East into the trust in FY23 will support continued growth over the medium term.
We continue to explore property opportunities in North America, and have recently executed a non-binding heads of agreement with Goodman, to investigate the development of the mid-Atlantic site in Pennsylvania.
Brickworks share price snapshot
Over the last month, Brickworks shares are up around 4%.
