Hoping to bag the boosted CSL dividend? Time is running out

Here's how you can secure the largest ever CSL dividend.

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Last month, we covered the latest earnings from ASX 200 healthcare share CSL Limited (ASX: CSL). As we reported at the time, CSL's earnings report covering the 2023 financial year was well received by investors. And no doubt the latest CSL dividend was a factor there. 

Last month, CSL revealed that it had brought in a 13% increase in revenues for FY23 to US$13.31 billion. Net profit after tax before amortisation rose by 20% in constant currency to US$2.86 billion, while reported net profits were up 10% to US$2.61 billion.

This all enabled CSL to reveal a final dividend of US$1.29 per share, partially franked at 10%. That's the largest dividend (in US dollar terms) that CSL has ever paid out and a big rise over last year's corresponding payment of US$1.18 per share. It takes the company's full-year dividend payments to a total of US$2.36 per share. That's a 6% rise over FY22's levels.

We don't yet know exactly how much this division will be worth yet in Australian dollar terms. 13 September has been set aside for that determination. But at the current exchange rates, this would equate to a payment worth approximately $2.02 per share.

So this was clearly exciting news for investors. On the day the results were released, the CSL share price climbed a healthy 3.73%. Today, the company's shares remain more than 2% above where they were before the earnings came out, as you can see below:

However, while this new CSL dividend might be an exciting one for investors to contemplate, time is running out if they want to secure it. That's because the ex-dividend date for this payment is fast approaching.

How to bag the next CSL dividend

Whenever an ASX share announces a dividend payment, it also must pick a date preceding the payment day that determines the eligibility of shareholders to receive it. Put simply, if you own CSL shares before the ex-dividend date, you will get the dividend. But if you buy CSL shares on or after the ex-dividend date, you miss out.

As such, we tend to see a large share price drop whenever a share trades ex-dividend, reflecting this loss of value for new investors.

So for CSL's upcoming final dividend, the ex-dividend date has been set for 11 September. That's next Monday. This means that if you want to see the latest CSL dividend arrive in your bank account, you will need to be quick and own CSL shares as of close of trading tomorrow.

Payment day for this dividend will then come on 4 October next month.

Right now, CSL shares offer a dividend yield of 1.14%.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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 Scott Phillips.

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