S&P/ASX 200 Index (ASX: XJO) stock Brambles Ltd (ASX: BXB) has delivered some benchmark smashing gains over the past 12 months. And some handy passive income to boot.
One year ago, on 29 July 2024, you could have bought Brambles shares for $15.38 each.
On Monday, shares in the supply chain logistics company – which counts as the world's largest supplier of reusable wooden pallets and crates – closed trading for $23.20 apiece.
That sees the Brambles share price up 50.9% in a year.
And that's not including dividends.
The ASX 200 stock is among a select handful of Aussie companies to have increased its dividend payout every year since 2020.
Over the past 12 months, the company paid eligible investors 59.2 cents a share in partly franked dividends. At Monday's closing price, that sees Brambles shares trading on a partly franked dividend yield of 2.6%.
Of course, those gains, and that welcome passive income, have all come and gone.
The question now is, can Brambles shares keep outperforming in the months ahead?
For some greater insight into that question, we defer to EnviroInvest's Elio D'Amato (courtesy of The Bull).
Image source: Getty Images
Should I buy the fast-rising ASX 200 stock today?
"Brambles is an original circular economy stock," said D'Amato, who has a buy recommendation on the ASX 200 stock. "Its CHEP pallet and container pools are re-used globally, cutting down on single use waste in supply chains."
From an ESG perspective, that could mark the first reason to buy Brambles shares today.
If your focus is on turning a profit, the first reason would be Brambles' solid financial growth metrics.
According to D'Amato:
The company delivered a strong first half fiscal year 2025 result in February, with sales revenue up 4% and underlying profit up 10%, followed by a solid third quarter trading update.
Despite a strong share price rally in calendar year 2025, Brambles remains well positioned as major multinationals look to reduce scope 3 emissions.
The second and third reason you may want to own this surging ASX 200 ESG stock is for its dividends and share buybacks.
"Carbon neutral in its own operations amid buybacks and dividends, BXB continues to be an appealing offering," D'Amato said.
What's the latest from Brambles?
Brambles released its third quarter trading update on 28 April.
The company amended it full year FY 2025 guidance on the day, forecasting year on year sales revenue growth of 4% to 5%, down from the prior guidance of 4% to 6%, citing the "impact of macroeconomic uncertainty on consumer demand".
Positively, the ASX 200 stock left its FY 2025 underlying profit growth forecast unchanged at 8% to 11%.
And management upgraded the outlook for the company's free cash flow before dividends to US$900 million to US$1.00 billion, up from the prior US$850 million to US$950 million.
Management said the improved free cash flow forecast primarily reflects "lower pooling capex given softer like-for-like volumes and better asset efficiency".
