Everything you need to know about the supersized CSL dividend

A very healthy payout is headed to shareholders.

| More on:
Different Australian dollar notes in the palm of two hands, 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

Owners of CSL Ltd (ASX: CSL) shares may not be overjoyed by the CSL share price's fall in reaction to the FY24 first-half result, but the bigger dividend may be a very pleasing silver lining.

For readers that haven't read my colleague James Mickleboro's coverage yet, revenue rose 11% in constant currency terms to US$8.05 billion and net profit after tax (NPAT) jumped 17% to US$1.9 billion. The underlying net profit after tax (NPATA) rose by 11% to US$2.02 billion, while NPATA earnings per share (EPS) went up 11% to US$4.18.

CSL dividend

That profit growth has given the board enough confidence to declare an interim dividend per share of US$1.19. When converted into Australian dollars, the interim dividend is approximately A$1.81 per share, an increase of 12%

If we look at the dividend payout ratio, CSL has decided to pay out 28.5% of underlying net profit and 30.3% of statutory EPS.

The dividend is going to be unfranked, meaning there are no franking credits.

When will this dividend be paid?

Before we get to the dividend payment date, investors need to know about the ex-dividend date. If an investor wants to receive the dividend, they need to own shares before the ex-dividend date – buying on that date means missing out.

The CSL ex-dividend date is 11 March 2024, so investors need to own CSL shares by 10 March 2024 (which is a Sunday) if they want to receive this payment. Therefore, 8 March 2024 (a Friday) is the last trading day to invest.

This upcoming dividend will be paid on 3 April 2024, which is less than two months away.

What's the outlook for more payout growth?

CSL said it's expecting underlying net profit to be between US$2.9 billion to US$3 billion in constant currency terms, which would be annual growth of between 13% to 17%.

Management said the company is "in a strong position to deliver annualised double-digit earnings growth over the medium term".

This profit growth may be promising for the CSL dividend in the coming reporting periods.

Motley Fool contributor Tristan Harrison 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 recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Dividend Investing

Analysts say these high-yield ASX dividend stocks are buys

Big yields are expected from these dividend stocks. But how big?

Read more »

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Dividend Investing

Everything you need to know about the Rio Tinto dividend

Shareholders are getting a big dividend.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

Buy these ASX 200 dividend shares for a big income boost

Analysts are saying good things about these income options.

Read more »

A woman in hammock with headphones on enjoying life which symbolises passive income.
How to invest

3 ASX 100 and ASX 200 shares I'd buy now for a $1,820 passive income in 2024!

These three ASX dividend shares offer investors market beating passive income.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Technology Shares

WiseTech increases dividend for 15th time in a row. Here's what you need to know

WiseTech's latest dividend continues a remarkable trajectory.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Consumer Staples & Discretionary Shares

Everything you need to know about the Woolworths dividend

Woolworths will pay out its largest interim dividend in three years in 2024.

Read more »

Man with rocket wings which have flames coming out of them.
Earnings Results

4 All Ords ASX dividend shares going gangbusters on results

All Ords investors are sending these ASX dividend shares soaring on the back of their earnings results.

Read more »

Happy dad watching tv with kids, symbolising passive income.
Dividend Investing

How I built $5,000 of passive income starting with $0

My intake of dividends is continuing to grow.

Read more »