How does the CSL dividend compare to its competitors?

We look at how the CSL dividend measures up against its ASX rivals.

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Key points

  • CSL offers the lowest dividend yield compared to Sonic Healthcare and Ramsay Health Care
  • The Ramsay Health Care share price has gained 22% over the past 12 months while CSL and Sonic Healthcare shares are flat 
  • CSL traditionally invests its profits into the business to drive shareholder value, however the business has been impacted by the pandemic

The CSL Limited (ASX: CSL) dividend has remained unchanged following the company’s mixed financial performance in the first half of FY22.

Despite navigating a challenging environment dominated by the COVID-19 pandemic, the company’s results were in line with expectations.

The global biotech’s CSL Behring revenue stood the same compared to the prior corresponding period. However, its Seqirus business delivered robust results, achieving a 17% increase in revenue over H1 FY21.

Overall, CSL recorded a 2.8% drop in net profit after tax (NPAT) to US$1,760 million.

Nonetheless, the board opted to return the company’s profits to shareholders, reflecting a consistent dividend policy.

But let’s see how the CSL dividend stacks up against its rivals.

How does the CSL dividend stack up?

CSL paid an unfranked interim dividend of US$1.04 (A$1.42) per share to eligible investors last month.

When combined with its previous dividend of US$1.18 (A$1.58) apiece, this brings the total dividends over the last 12 months to US$2.22 (A$3.00). It’s worth noting that the final dividend paid in FY21 was the highest in the company’s history.

Based on the current CSL share price of $265.83, this gives a trailing dividend yield of 97%.

What about its competitors?

CSL’s largest direct competitors are internationals, namely the Spanish company Grifols and Japanese-owned Takeda Pharmaceutical Company. However, as neither are listed here in Australia, let’s compare the CSL dividend against ASX-listed Sonic Healthcare Ltd (ASX: SHL) and Ramsay Health Care Ltd (ASX: RHC).

Sonic Healthcare rewarded its shareholders with a fully franked interim dividend of 40 cents per share on 23 March. Including the prior final dividend of 55 cents equates to 95 cents per share over the 12 months.

The Sonic Healthcare share price is currently trading at $36.54, which gives it a dividend yield of 2.60%.

Ramsay Health Care distributed an interim dividend of 48.5 cents per share to shareholders late March. The company’s prior final dividend for FY21 came to $1.03 a pop, translating to a 12-month dividend of $1.515.

The Ramsay Health Care share price is trading at $82.05 at the time of writing, offering a dividend yield of 1.85%.

While comparing a dividend yield against sector peers is one point to consider when investing, it is also important to examine the total shareholder return for the past 12 months.

CSL shares have remained flat for the period, while Sonic Healthcare and Ramsay Health Care shares have climbed 1% and 22%, respectively.

CSL commands a market capitalisation of roughly $129.74 billion, making it the third largest company on the ASX.

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

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