4 ASX companies that own CSL shares (and lots of them!)

smiling health care workers in a medical settingsmiling health care workers in a medical setting

CSL Limited (ASX: CSL) shares are backed by some of the biggest ASX companies in Australia.   

The ASX healthcare share is a biotech giant with a market capitalisation of around $145 billion according to the ASX.

It has done incredibly well for long-term shareholders. Over the past decade, the CSL share price has risen by around 400%. Plus its (relatively small) dividends boost the 10-year return even more.

Despite CSL now being a large company, some of the ASX’s biggest businesses also hold a sizeable position in the healthcare giant, which may suggest they’re confident about its future.

Which ASX companies own CSL shares?

There are four names within the twenty largest shareholders that I’m going to tell you about: Netwealth Group Ltd (ASX: NWL), Australian Foundation Investment Co Ltd (ASX: AFI) (AFIC), Argo Investments Limited (ASX: ARG), and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

Argo and AFIC are two of the ASX’s largest and oldest listed investment companies (LICs). They focus on ASX blue chip shares that can provide a mixture of dividends and capital growth.

At the end of April, CSL shares were the third largest position in the AFIC portfolio, with an 8.1% weighting. CSL was also the third largest position in the Argo portfolio, with a 5.2% holding at the end of April.

Soul Pattinson is the largest investment business on the ASX, with part of its investment strategy focused on large ASX shares. Of its large-cap portfolio, worth $2.9 billion at 31 January 2023, CSL was the third-largest holding with a 6.6% weighting.

Netwealth is slightly different to the other three ASX companies I’ve mentioned. It’s a fintech business that offers ‘wrap’ services for self-managed super funds (SMSFs) and high net worth clients where they can manage their investments (including buying and selling).

It seems Netwealth holds these CSL shares on behalf of other investors, rather than a Netwealth fund manager deciding to become one of the largest CSL shareholders.

Could the biotech giant keep delivering healthy returns?

As I mentioned above, the CSL share price has done very nicely over the last decade. The past five years have been solid, with a rise of around 70% as we can see on the chart below. That’s despite the impacts of the COVID-19 pandemic.

The dividend has also grown from around $1.05 per share in 2013 to $3.18 per share in 2022.

Estimates on Commsec suggest the ASX healthcare share is expected to grow its profit and dividend over the next few years. Certainly, this could be helpful support for the CSL share price.

Using FY23 projections, it’s valued at 38 times FY23’s estimated earnings and could pay a dividend per share of $3.42.

Over the next two years to FY25, it could grow profit by 46%. This would mean the CSL share price is only valued at 26 times FY25’s estimated earnings.

With the business pumping billions of dollars into research and development, it could continue to grow earnings as it launches new health products for patients and healthcare institutions.

The post 4 ASX companies that own CSL shares (and lots of them!) appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Netwealth Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Netwealth Group and Washington H. Soul Pattinson and Company Limited. 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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