The CSL Ltd (ASX: CSL) share price is down 2% in early trading as the ASX healthcare share feels the effects of the ASX stock market sell-off. CSL shares also went ex-dividend today.
On Friday in the US market, there was a sizeable decline in a number of stocks. Nvidia fell 5.5%, Eli Lilly dropped 2.3%, Microsoft declined 0.7%, Tesla fell 1.8% and so on. The S&P/ASX 200 Index (ASX: XJO) is currently down by 1.3%.
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Ex-dividend day
One of the factors that may be impacting CSL shares today is that it went ex-dividend.
An ex-dividend date tells the market when new investors buying shares will miss out on the upcoming dividend. There has to be a cut-off point for deciding who will and who won't receive the dividend.
Anyone who buys today is missing out on the interim dividend payment. Investors who bought CSL shares last week are eligible to receive the dividend, assuming they're still shareholders on the record date (tomorrow).
How much is being paid?
CSL is going to pay a dividend of US$1.19 to shareholders, which at the time of the FY24 first-half result translated into approximately A$1.81 per share (an increase of 12%).
At the current exchange rates, the upcoming payment equates to A$1.80 per share.
CSL is expecting to release information about exchange rates for Australian and New Zealand dollar payments on 14 March 2024.
The ASX healthcare share is planning to pay this dividend on 3 April 2024, which is only a few weeks away.
CSL was able to deliver a bigger dividend after growing net profit after tax (NPAT) by 17% to US$1.9 billion in its FY24 first-half result. It also reported underlying earnings per share (EPS) growth of 11% to US$4.18.
Profit expectations
The company is expecting to report underlying NPATA of between US$2.9 billion to US$3 billion, which would be growth of between 13% to 17%.
Management thinks the business is in a strong position to deliver annualised double-digit earnings growth over the medium term.
On Commsec, the estimates imply the CSL share price is currently valued at 30 times FY24's estimated earnings. It could pay an annual dividend of A$4, according to Commsec, which puts the forecast forward dividend yield at 1.4%.
