Buy CSL shares for growing dividends and 'compelling long-term tailwinds'

CSL has increased both its interim and final dividend every year since 2021.

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A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.

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CSL Ltd (ASX: CSL) shares derive their revenue from three operating segments.

Namely CSL Behring (the company's blood plasma segment), CSL Vifor, and its Seqirus businesses.

The S&P/ASX 200 Index (ASX: XJO) biotech stock acquired CSL Vifor, a global leader in iron deficiency therapies, in 2022 for US$11.7 billion. Vifor has been struggling to achieve growth over the past two years.

However, with the end of the global pandemic, CSL's Behring division has seen elevated costs come down along with an improving outlook for plasma collections.

Since 2021, CSL has increased both its interim and final dividend every year.

At the current share price of $$279.98, CSL shares trade on a fully franked trailing yield of 1.4%.

Here's what these experts are saying about the Aussie biotech giant.

Why now is a good time to buy CSL shares

Jed Richards, financial advisor at Shaw and Partners, has a 'buy' rating on CSL shares.

According to Richards (courtesy of The Bull), "This well managed blood products company offers compelling long-term tailwinds. CSL is steadily growing its dividend stream."

Richards continues:

The company usually under-promises and over-delivers when it comes to profit. The stock has underperformed on the back of a slower recovery in margins.

Also behind a weaker share price was a phase 3 study which found its CSL112 drug was unable meet its primary efficacy endpoint of reducing the risk of major adverse cardiovascular events in patients at 90 days following a first heart attack.

And with CSL shares down 9% over the past 12 months, Richards believes now could be an opportune time to buy.

"The recent share price presents an attractive entry level for investors," he said.

Emma Fisher, portfolio manager at Airlie Funds Management, is also a fan of the ASX 200 biotech company.

Addressing her investment philosophy more broadly, Fisher said (quoted by The Australian Financial Review):

Investing is not about having epiphanies. It's not lightning-bolt moments in the shower where you realise that some secular megatrend is going to make you all this money. It's about the nuts and bolts – talking to companies, having an open mind, reading widely.

As for CSL shares, she said these "should be in any Aussie portfolio".

How has the ASX 200 biotech stock been tracking?

CSL shares are bucking the wider market sell-down today to be up 0.3% at the time of writing.

As mentioned above, the ASX 200 biotech share is down 9% over the past 12 months.

But in the past months, we have seen a marked uptrend. Since market close on 30 October, shares are up 21%.

Motley Fool contributor Bernd Struben 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.

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