S&P/ASX 200 Index (ASX: XJO) dividend stock Brambles Ltd (ASX: BXB) has managed to charge higher over the past month even as the benchmark index tumbled.
The supply chain logistics company counts as the world's largest supplier of reusable wooden pallets and crates. Brambles operates in more than 60 countries, primarily under its Chep brand.
And while the ASX 200 is down 8.4% since market close on 14 February, the Brambles share price has gained 5.3% over that same time to $20.30. This gives the company a market cap just north of $28 billion.
And it sees shares in the ASX 200 dividend stock up 34.5% in a year.
As for that passive income, Brambles has increased its dividend payout every year since 2020.
Over the past 12 months, the company paid out (or shortly will pay out) 59.2 cents a share in partly franked dividends. That has Brambles shares trading on a partly franked dividend yield of 2.9%.
And Catapult Wealth's Dylan Evans expects 2025 will see more strong performance from the company (courtesy of The Bull).
Image source: Getty Images
ASX 200 dividend stock in 'top shape'
"This supply chain logistics giant delivered a solid first half result in fiscal year 2025," said Evans, who has a buy rating on the ASX 200 dividend stock.
"While revenue growth was at the lower end of its target, Brambles offset this by continuing to deliver on efficiency and productivity measures," he noted, which is the first reason to consider buying the stock.
As for the second reason, according to Evans:
These improvements are increasing margins and delivering strong cash flow. This cash flow has enabled Brambles to increase its dividend by 27% on last year's corresponding period and conduct a significant share buy-back of up to $500 million.
Looking ahead to the third reason to be optimistic on Brambles shares, Evans said, "While Brambles is sensitive to economic growth and currency movements, the underlying business appears to be in top shape, with management building a solid track record."
What guidance did Brambles provide for FY 2025?
Brambles shares managed to elude the broader market sell-off this past month, with investors supporting the ASX 200 dividend stock following the release of its half-year results on 20 February.
Atop the strong profit growth achieved for the half year, the company expects to deliver sales revenue growth (on a constant currency basis) of 4% to 6% for the full year FY 2025.
Management forecast underlying profit growth of 8% to 11%. And free cash flow before dividends was upgraded to the range of US$850 million to US$950 million, up from the prior US$750 million to US$850 million.
Commenting on the FY 2025 outlook for the ASX 200 dividend stock, Brambles CEO Graham Chipchase said:
The US$100 million upgrade to free cash flow before dividends announced today reflects lower capital expenditure and is the direct benefit of capital allocation discipline and the improved business fundamentals attributable to the transformation program.
Combined with our sales and profit guidance, which was reconfirmed today, achieving our FY 2025 outlook will see us deliver every component of our investor value proposition.
