S&P/ASX 200 Index (ASX: XJO) dividend heavyweight Brickworks Ltd (ASX: BKW) is charging higher today.
Shares in the building products company closed yesterday trading for $26.59 and are currently swapping hands for $26.82 apiece, up 0.9%.
For some context, the ASX 200 is down 0.2% at this same time.
As you can see on the chart above, this puts the Brickworks share price up 7% over 12 months.
Brickworks also paid out two fully franked dividends over the year, totalling 67 cents a share. This gives the ASX 200 dividend stock a fully franked trailing yield of 2.5%. Eligible shareholders can expect to receive the final dividend payout of 43 cents a share tomorrow, November 27.
As for today's outperformance, investor interest looks to have been stirred with Brickworks holding its annual general meeting (AGM) this morning.
Here's what we learned.
Brickworks share price gains amid AGM
Brickworks chairman Robert Millner opened the meeting by noting that in FY 2024, the company "continued to execute on a range of initiatives to deliver long-term shareholder value".
Among those initiatives, the ASX 200 dividend stock achieved "substantial completion" of its Oakdale West Estate, which Millner said, "is now one of the most valuable industrial property precincts in the country".
FY 2024 also saw Brickworks complete its new brick plant in Western Sydney, "the most advanced brick production facility in the country".
The company is also a major shareholder in diversified investment house Washington H Soul Pattinson & Company Ltd (ASX: SOL). Over the past financial year, Brickworks increased the value of its listed investments in Soul Patts and FBR Ltd (ASX: FBR) by $263 million.
But the ASX 200 dividend stock did encounter headwinds over the year.
Millner said:
Despite these notable achievements, Brickworks recorded lower earnings, with underlying NPAT of $61 million and a statutory loss of $119 million recorded in FY24. Earnings were adversely impacted by a non-cash devaluation within Property and a non-cash impairment within Building Products
On the passive income front, Millner said, "This year represents the eleventh year in a row of increased dividends, and we have now maintained or increased dividends for the last 48 years."
He added, "We believe in providing returns through dividends and are proud of our long history of dividend growth, and the stability this provides to our shareholders."
Millner then highlighted Brickworks' strong long-term performance, incorporating both dividends and share price appreciation.
"This means that $1,000 invested in Brickworks in 1999 would be worth over $16,000 at the end of the period," he said.
What's next for the ASX 200 dividend stock?
Brickworks CEO Mark Ellenor took over the podium from Millner.
After reviewing the core FY 2024 results and first quarter trading update, he turned to what's ahead for the ASX 200 dividend stock.
"Our investment in Soul Patts is expected to continue to deliver a stable and growing stream of earnings and dividends over the long term," Ellenor said.
As for the Brickwork's property arm, he said:
Significant growth in rental income is forecast from the Property Trusts over the coming years, as we continue to develop existing Estates and benefit from the significant mark-to-market uplift in rent as existing leases expire.
Over the long term, structural trends towards e-commerce and the digital economy will continue to drive demand for our prime industrial facilities for many years…
On the building products front, he noted, "We expect subdued building activity across our key markets in Australia and North America to persist for the next 12 months."
He also noted that the longer-term outlook for the ASX 200 dividend stock is strong amid the housing undersupply in Australia and easing monetary conditions in North America.
"As conditions improve, our Building Products business is well placed to deliver strong returns, following our recent plant investments, re-structuring and portfolio rationalisation activities," Ellenor said.
Ellenor concluded:
Following a period of significant investment, our short-term priority is to maximise cash generation. With our diversified portfolio of high-quality assets, Brickworks is well placed to meet any future opportunities and challenges and continue to deliver for shareholders.
