If you're a shareholder of biotherapeutics giant CSL Limited (ASX: CSL), you may be wondering where its dividend is heading in the coming years.
Especially now that its outlook has improved greatly following a recovery in plasma collections, strong demand for immunoglobulins, and its acquisition of Vifor Pharma.
Let's take a look to see what analysts are forecasting for the CSL dividend.
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Where is the CSL dividend heading through to 2025?
Firstly, let's start with the current CSL dividend. Last week the company released its full year results and declared a partially franked US$1.18 (A$1.68) per share final dividend.
This meant the company's full year dividend was flat year over year at US$2.22 (A$3.11) per share.
Looking ahead, according to a note out of Goldman Sachs, its analysts are expecting the company's dividend to return to growth again in FY 2023. Its analysts have pencilled in a US$2.52 (A$3.66) per share dividend. This represents a 13.5% increase over FY 2022's payout. And with the CSL share price currently fetching $288.63, this will mean a modest yield of 1.3%.
In FY 2024, Goldman expects another increase to the CSL dividend. It is forecasting a dividend of US$3.21 (A$4.66) per share for this financial year. This will be a 27% increase and represents a 1.6% yield at today's prices.
Finally, the following year in FY 2025, the broker is expecting another increase. It is estimating a US$3.47 (A$5.04) per share dividend that year. This is an increase of 8.1% and equates to a yield of 1.75%.
While these are admittedly not the biggest yields you'll find today, if CSL carries on this trend over the next decade and beyond, they could grow to be very attractive for income investors in the future.
