A few years ago, this writer penned an article examining the potential of CSL Limited (ASX: CSL) as a dividend growth share. At the time, we looked at CSL's record of raising its dividend every year since 2013, making it an arguable dividend growth share. But that was two years and a pandemic ago.
So, how are CSL shares faring in the dividend stakes today?
CSL has, of course, been an ASX share that has had a share price stall in recent years. At the current price of $249 a share, CSL is still well below the all-time high of almost $340 a share that we saw back in early 2020. The company has been trading sideways ever since, and has had a rough couple of months recently. The CSL share price remains down more than 15% year to date, and down more than 21% since late November.
But all of that is immaterial to this company's dividends. So, let's take a look.
At the time of writing the aforementioned piece on CSL's dividend back in 2019, CSL had just paid out its final dividend for the year. That was a US$1 per share dividend, which took its 2019 total to US$1.85.
So, how did CSL do in the year of the pandemic, 2020? That was a year that saw many ASX 200 blue-chip shares forced to slash their dividends. Those included Commonwealth Bank of Australia (ASX: CBA) and the other big four banks, as well as Woolworths Group Ltd (ASX: WOW).
Well, CSL managed to grow its dividend that year. It paid out two dividends, an interim payment of 95 US cents, as well as a final dividend of US$1.07 per share.
CSL shows its dividend chops
And 2021 was even better. CSL bumped its interim dividend to US$1.04 a share, and its final payment to US$1.18. Unusually for CSL, that final dividend also came with some franking credits, albeit only at 10%.
So that means CSL has now given its investors an annual dividend pay rise every year since 2013. That's starting to become an impressive streak, in the ballpark of other ASX dividend royalty like Washington H. Soul Pattinson and Co Ltd (ASX: SOL).
There is a caveat though. Although CSL has delivered a rising stream of dividends, these are (evidently) denominated in US dollars. The fluctuations ASX investors have seen in the Aussie dollar against the US dollar have not translated into an annual increase in Aussie dollar terms.
To illustrate, ASX investors would have received approximately $2.941 in dividends per share from CSL in 2020, but only $2.939 per share in 2021. Not too much of a difference, but enough to change the trend in Aussie dollar terms.
Even so, CSL arguably has an impressive record of raising its dividends. It will be interesting to see what 2022 throws up for investors. CSL will report its half-year earnings to the market on 16 February.
At the current CSL share price, this ASX 200 blue chip has a trailing dividend yield of 1.18%.
