Everything you need to know about the supersized CSL dividend

CSL has just given investors another dividend pay rise.

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published August 15, 2023 12:30 pm AEST

One of the big earnings announcements this Tuesday has been from ASX 200 healthcare giant CSL Limited (ASX: CSL). And income investors will be delighted by what CSL had to say this morning in regard to its dividend.

Yes, before market open today, CSL reported its full-year earnings for the 2023 financial year.

As we covered at the time, these saw CSL reveal a 31% surge in revenues to US$13.31 billion. The company's net profits were also up by 10% to US$2.61 billion, and up 20% on a constant currency basis to US$2.86 billion.

But let's talk about the CSL dividend.

A person is weighed down by a huge stack of coins, they have received a big dividend payout. — Image source: Getty Images

What kind of dividend did CSL announce today?

So CSL has announced that its final dividend for 2023 will come in at US$1.29 per share, partially franked at 10%. That's a healthy rise of 9.32% over last year's final dividend of US$1.18 per share.

We don't yet know what the final amount in Aussie dollar terms will be. But at present exchange rates, it would come in at roughly $1.99 per share. If that does turn out to be the case, it would be a 13.07% rise over last year's final dividend (in Aussie dollar terms) of $1.76 per share.

It's also a big rise over CSL's interim dividend from April this year. That was a US$1.07 per share payment, which ended up becoming a $1.62 per share payment in our local currency.

So all up, CSL has now revealed it will pay out a total of US$2.36 per share in annual dividends for FY2023. That's up 6% from FY2022's total.

This latest final dividend, if currency exchange rates hold, will be the largest dividend the healthcare giant has ever paid out to investors. It continues CSL's strong track record of raising its shareholder payouts. Only five years ago, investors were taking home $2.28 per share from their CSL stock. In 2023, it looks like investors are in line to nab something like $3.61 per share.

When is payday?

This latest dividend will hit CSL owners' bank accounts on 4 October later this year. The ex-dividend date is set for 11 September next month. Two days before, on 9 September, we'll find out exactly how much this dividend will be worth in Aussie dollar terms.

CSL's dividend reinvestment plan (DRP) won't be available for this payment, so all shareholders will be receiving this dividend in cash.

Right now, the current CSL share price gives the company a trailing dividend yield of 1.06%.

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