Own CSL shares? You're receiving a healthy dividend boost today!

The bank accounts of CSL shareholders are about to receive a healthy payment.

| More on:
Man holding out Australian dollar notes, 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 can feel a bit richer today because a dividend is on its way.

It was recently ASX reporting season and CSL was one of the companies to release its FY24 half-year report.

In that result, we learned that revenue increased by 11% to US$8.05 billion in constant exchange rate terms.

Companies pay their dividends from the net profit after tax (NPAT) they generate. CSL reported that its statutory NPAT rose 17% to $1.9 billion, underlying net profit (NPATA) rose by 11% to $2.02 billion and NPATA earnings per share (EPS) increased by 11% to $4.18.

With that double-digit profit growth, CSL's board felt confident enough to deliver a pleasing increase to the interim dividend.

CSL dividend

The ASX healthcare share decided to declare an interim dividend per share of US$1.19. When converted into Australian dollars, the CSL half-year dividend is going to be AU$1.799 per share.

This dividend is entirely unfranked, so there are no franking credits attached to the dividend.

At the current CSL share price, that payment translates into a dividend yield of around 0.6%.

Of course, we shouldn't think about the dividend yield as just one payment – shareholders usually receive two dividends over the course of 12 months.

According to the forecast on Commsec, owners of CSL shares are predicted to receive an annual dividend of $4 per share, which translates into a dividend yield of 1.4%.

That's not exactly a huge yield, but it's small partly because the dividend payout ratio is only expected to be 42.7% – that means the ASX healthcare share is forecast to retain a majority of its net profit generated.

The company has a history of investing billions of dollars into research and development to create the next vaccines and treatments.

Profit guidance

CSL is expecting its underlying profit (the NPATA) to be in the range of US$2.9 billion to US$3 billion in current exchange rate terms. That profit would represent year over year growth of between 13% to 17% compared to FY23.

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

The company also said the strong growth of its immunoglobulins franchise is "expected to continue as patient demand remains strong". CSL also has a number of initiatives underway in plasma collections that are "improving efficiencies and processing times, supporting continued expansion in CSL Behring's gross margin".

CSL share price snapshot

Over the last six months, CSL shares have risen around 15%.

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 Healthcare Shares

smiling health care workers in a medical setting
Healthcare Shares

'Critical unmet need': Why everyone is talking about this ASX 200 healthcare stock

This healthcare stock has been given a boost from the US FDA today.

Read more »

Senior woman with caregiver in the garden
Healthcare Shares

Why this ASX 200 stock is a retiree's dream

I think this is a very healthy and resilient stock.

Read more »

A doctor appears shocked as he looks through binoculars on a blue background.
Healthcare Shares

3 ASX 200 healthcare stocks that could deliver big returns for investors

Analysts see a lot of value in these stocks at current levels.

Read more »

A team of people giving the thumbs up sign representing APA and Wesfarmers doing a deal to study green hydrogen transport using an APA gas pipeline
Healthcare Shares

Why are so many top fundies overweight on CSL shares?

This is a healthy opportunity, according to a number of fund managers.

Read more »

Scientist looking at a laptop thinking about the share price performance.
Share Fallers

Why did this ASX All Ords stock just crash 16%?

Investors are punishing this ASX All Ords stock on Thursday. But why?

Read more »

woman in lab coat conducting testing representing biotech
Healthcare Shares

Can the CSL share price really reach $500 in just 3 years?

Leading analysts are expecting big returns from CSL shares in the months ahead.

Read more »

Two businesspeople walk together in an office, smiling as they enjoy a good business relationship.
Healthcare Shares

Why two brokers have named this ASX 200 stock as a best buy

Investors may want to pounce on this high-quality stock before it's too late.

Read more »

A young man goes over his finances and investment portfolio at home.
Healthcare Shares

What could $5,000 invested in CSL shares become in 1 year?

Let's see what sort of returns analysts are tipping for this ASX giant.

Read more »