How much dividend income will $20,000 worth of CSL shares buy right now?

It’s probably fair to say that most investors don’t associate CSL Ltd (ASX: CSL) shares with dividend income. After all, this is an ASX dividend share with a yield that rarely exceeds 1%.

But CSL actually has a strong and rather impressive history as an ASX dividend share. It paid out its maiden dividend back in 2013, forking out US$1.02 per share over the year.

Since then, CSL has been ratcheting up its annual dividend payments every single year. That includes the COVID-affected 2020.

That’s with the exception of 2022, which has seen CSL pay out the same US$1.22 per share that it did over 2021.  

Even so, this 8-year streak of annual pay rises is about as good a start as a dividend share can get.

But this leads us to our question of the day: how much dividend income will $20,000 worth of CSL shares buy for an ASX investor right now?

What kind of dividend income can one expect from CSL shares?

Well, at the current share price of $293.26 that CSL is asking today (at the time of writing), $20,000 would buy us 68 CSL shares, with some change left over.

So in 2022, CSL has paid out an interim dividend worth US$1.04 per share, and a final dividend worth US$1.18 per share. That was worth $1.4223 and $1.7583 in our local currency respectively. The final dividend came partially franked at 10%, while the interim dividend was unfranked.

So our 68 CSL shares would have yielded us a total of $96.76 when the interim dividend was paid out, and $119.56 for the final dividend. That’s a total of $216.32 for the year. So our $20,000 worth of CSL shares would result in a dividend income worth $216.32, or 1.08% of our cost base.

No doubt investors will appreciate this income in what has been a difficult period for CSL. The CSL share price remains down by 0.8% over 2022 thus far, and down 6% over the past 12 months. The company is still trading below its pre-COVID highs of almost $340 a share.

The post How much dividend income will $20,000 worth of CSL shares buy right now? appeared first on The Motley Fool Australia.

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