CSR Limited (ASX: CSR) has been a very long and steady presence on the S&P/ASX 200 Index (ASX: XJO). After all, this company was founded back in 1855. It is also known as a bit of an ASX dividend heavyweight since it has paid a biannual dividend every year since at least 1990 (with the exception of the COVID-dominated 2020).
As it stands today, CSR shares offer investors a substantial trailing dividend yield of 4.91%. That comes with full franking credits too, so that yield grosses up to an impressive 7%.
But for CSR shareholders, is receiving dividends in cash the only option? After all, many ASX 200 dividend shares also offer a dividend reinvestment plan (DRIP) to their investors. A DRIP means shareholders have the option of receiving their dividend in the form of new shares rather than cash. Many investors prefer this, as it can help to remove the hassle of organising a reinvestment of funds received in cash. Instead, the investment is put on ‘autopilot, and compounds away in the background.
Most ASX 200 blue-chip shares offer a DRIP. But does CSR?
Cash or cheque: Do CSR shares allow a dividend reinvestment plan?
Well, the answer is yes. At least it has been until this point. CSR currently does run a DRIP. The company last paid out a dividend back in December last year. At the time, investors were given the option to receive the interim dividend in cash, or to “reinvest all or part of their dividend entitlements in more shares”. Like most DRIPs, this reinvestment was not available with a discount.
Given CSR’s DRIP has been in operation for almost all of the past decade (again, with that 2020 exception), we can probably assume investors will continue to enjoy its availability into the future.
CSR shares have closed at $5.69 each, down 2.4%, today. At this share price, CSR has a market capitalisation of $2.76 billion.
Should you invest $1,000 in CSR right now?
Before you consider CSR, you’ll want to hear this.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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