Regardless of what the market has in store, it’s set to be a good day for CSL Limited (ASX: CSL) shareholders today.
The time has come for the company to pay its latest final dividend. Here’s what you need to know.
It’s payday for CSL shareholders
In August, CSL lifted the lid on its FY22 results. In the process, the ASX 200 biotech giant declared a final dividend of US$1.18, partially franked at 10%.
For this dividend, CSL has used an AUD/USD exchange rate of 67.11 US cents, so it’s equivalent to around $1.76 in Aussie dollars.
CSL shares went ex-dividend for this payment back on 6 September. Therefore, any CSL shares bought on or after this date won’t be eligible for today’s payout.
CSL hasn’t run a dividend reinvestment plan (DRP) since 2004, so shareholders will be receiving this dividend in cash.
Today’s US$1.18 payment is in lockstep with the final dividend CSL declared in FY21. Total dividends were also in line with the prior year, coming in at US$2.22 per share.
In Aussie dollars, CSL has paid out roughly $3.18 in dividends this year. At current levels, this puts CSL shares on a trailing dividend yield of around 1.1%.
Looking ahead, broker Goldman Sachs is forecasting CSL to raise its annual dividends by 14% in FY23 to US$2.52. This represents a prospective forward dividend yield of 1.3%.
How did CSL fare in FY22?
CSL maintained its annual dividend payouts in FY22 despite its net profit after tax (NPAT) sliding by 6% to US$2.3 billion.
COVID lockdowns put a clamp on CSL’s plasma collections, which are a crucial component for manufacturing its treatments.
As a result, the company’s Behring business delivered muted revenue growth of 4% in FY22. What’s more, collections came at a higher cost, which pushed down gross margins.
CSL’s vaccine business, Seqirus, helped to offset some of this weakness. Seqirus achieved full-year revenue growth of 13%, driven by growth in seasonal influenza vaccines.
Where to next for the CSL share price?
CSL shares have held up fairly well so far in 2022, falling by just 1% to currently sit at $287.40.
They’ve comfortably outperformed the S&P/ASX 200 Index (ASX: XJO), which has tumbled 10% since the beginning of the year.
Taking a look around the grounds, brokers are mostly bullish on the CSL share price.
Citi currently has a buy rating on CSL shares with a 12-month price target of $340, implying potential upside of 18.3%.
Analysts at Morgan Stanley have an overweight rating on CSL shares and a 12-month price target of $323, which implies potential upside of 12.4%.
JP Morgan also has an overweight rating on CSL shares, with a price target of $330. This represents potential upside of 14.8% over the next 12 months.
Meanwhile, analysts at Goldman Sachs aren’t quite ready to press the buy button yet. The broker has a neutral rating on CSL shares and a 12-month price target of $291, roughly in line with where the CSL share price is sitting today.
The post The CSL dividend is being dished out today. Here’s the lowdown appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Wednesday
- Here’s why experts rate these blue chip ASX 200 shares as buys
- Are CSL shares ‘starting to look more attractive’ in October?
- Did CSL shares manage to generate healthy returns in September?
- CSL share price jumps despite JP Morgan’s latest caution
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd., Goldman Sachs, and JPMorgan Chase. 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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