Hoping to collect the latest CSL dividend? Here’s how

an older couple look happy as they sit at a laptop computer in their home.an older couple look happy as they sit at a laptop computer in their home.

Perhaps uniquely amongst the top shares of the S&P/ASX 200 Index (ASX: XJO), healthcare giant CSL Ltd (ASX: CSL) is not well known for its dividend payments.

That’s because, unlike the big four banks, and the likes of BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Telstra Group Ltd (ASX: TLS), the CSL dividend yield doesn’t often get above 1%.

Yet CSL still has a long and proud history of paying dividends to its shareholders. In fact, it has upped its dividend quite substantially over the past few years. Back in 2019, investors enjoyed $2.66 in annual dividends per share. But in 2022, this had ratcheted up to $3.18 per share.

This trend seems to be continuing in 2023. CSL’s next interim dividend, and its first for the year, is due on 5 April next month and will come in at US$1.07 per share, unfranked. That’s a decent 2.88% increase over 2022’s interim dividend of US$1.04 cents per share.

You’d better be quick if you want the next CSL dividend

But if you wish to collect this latest dividend from the blood plasma and vaccine company, you’d better be quick. That’s because CSL is scheduled to trade ex-dividend for this next payment in just two days’ time. Yes, CSL will ‘go ex-div’ for its next interim dividend on 9 March – this Thursday.

When a company trades ex-dividend, it cuts off any new investors from receiving its latest dividend payment. So anyone who owns CSL shares by the close of tomorrow’s trading session will receive the company’s upcoming dividend payment. But anyone who buys CSL shares from Thursday onwards will not.

Because of this, we can expect to see a bit of a drop in the CSL share price on Thursday morning. This will reflect the fact that CSL shares will become slightly less viable on Thursday, seeing as the shares will no longer come with the right to receive this latest dividend.

This is what typically happens when an ASX divided share passes its ex-dividend date.

So, as you might have gathered, CSL denominates its dividend payments in US dollars.

The raw amount of US$1.07 per share has been fixed, but ASX investors will only find out exactly how much is coming their way in Australian dollar terms on 10 March, this Friday. On today’s exchange rates though, it will be around $1.59 per share.

Then, it’s less than a month until dividend payday on 5 April.

At today’s pricing, CSL shares are up 4.31% in 2023 so far:

At this share price, CSL shares now have a dividend yield of 0.96%.

The post Hoping to collect the latest CSL dividend? Here’s how appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Telstra Group. 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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