How big will the CSR dividend be in 2022?

Forecasts are interesting.

| More on:
Smiling man holding Australian dollar notes, symbolising dividends.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • CSR has been a consistent source of dividend income for shareholders since 1990 
  • The company looks set to continue this trend, with analysts baking in a fairly robust dividend growth schedule in forecasts 
  • In the last 12 months, CSR shares have spiked 8% 

Shares in CSR Ltd (ASX: CSR) are flat today and holding the line at $6.05 apiece. As we approach the mid-point in April, CSR shares are just 8% higher in the past 12 months.

After trading within a fairly wide sideways channel in that time, shares have recently spiked from a low of $5.54 in March to sit back near 52-week highs.

TradingView Chart

What about the CSR dividend?

Whilst dividend growth has been lumpy over recent years, payment consistency has been a forte of CSR’s for more than 30 years now.

“CSR has paid twice yearly dividends every year since 1990 as well as issuing periodic special dividends,” according to TMF.

“The company’s dividends vary between unfranked, partially franked and fully franked and are typically paid in July and December each year. CSR has also executed a number of share buybacks over the past 15 years.”

Most recently, it paid a fully franked interim dividend of 13.5 cents on 10 December 2021.

Analysts are baking in a fairly stable growth schedule over the coming periods for CSR as well. If there are no hiccups, CSR could recognise a pre-tax profit of $142 million in H2 FY22, up from $126 million in H1, according to Bloomberg consensus estimates.

As a result, consensus forecasts for CSR’s dividend are for a 16.2 cents per share payment in H2 FY22, followed by a 16.3 cents per share payout in H1FY23.

Factoring in last year’s payment, that would bring the FY22 dividend to 29.7 cents per share, with full franking credits available as a taxable offset.

At the current share price, that signifies a forward dividend yield of 4.89%, higher than most investment grade fixed income instruments at the moment.

On a sequential basis, the dividend growth forecasted over the next few semi-annual periods is set to outpace the level of inflation, in real terms.

In the last 12 months, CSR shares have spiked 8% and are now up 3% for the year to date.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Bruce Jackson.

More on Dividend Investing

piggy bank at end of winding road
Dividend Investing

Why is the Transurban share price languishing today?

The Transurban share price is performing rather well today, despite the company going ex-dividend.

Read more »

farm workers examine an agricultural crop
Dividend Investing

Why the Rural Funds share price is falling today

Why is the Rural Funds share price tanking today? It's not as bad as it looks.

Read more »

a woman sits with a concerned look on her face at her computer in an home office environment.
Dividend Investing

Here’s why the Goodman Group share price is sinking today

What's happening with the global property group's shares on Wednesday?

Read more »

Smiling man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Dividend beasts: Here are 2 ASX dividend shares with expected yields over 10%

Brokers have picked out two businesses that could pay gigantic yields in the next financial year.

Read more »

Miner holding cash which represents dividends.
Dividend Investing

How does the Fortescue dividend compare with its peers over the last 5 years?

How much has Fortescue paid in dividends over the last 5 years compared to other big miners?

Read more »

Dividend Investing

Analysts name 2 ASX dividend shares to buy today

Here are two ASX dividend shares to buy according to analysts...

Read more »

A health professional wearing a stethoscope and scrubs shrugs with uncertainty.
Healthcare Shares

Has CSL been growing its dividend?

Is the biotech giant still increasing its dividends in a post-COVID world?

Read more »

A man waking up happy with a smile on his face and arms outstretched representing the hefty Adairs dividend yield
Dividend Investing

Do Adairs shares really boast a 9% dividend yield?

This All Ords retail stock is currently offering a hefty dividend yield.

Read more »