Down 11% in a year, are CSL shares now a good income buy?

CSL shares have faced headwinds from potential US pharmaceutical tariffs.

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CSL Ltd (ASX: CSL) shares are pushing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed yesterday trading for $264.91. At the time of writing in afternoon trade on Tuesday, shares are swapping hands for $267.68 apiece, up 1.1%.

That leaves CSL shares down 11.1% since this time last year.

Though that's not including the (rounded) $4.25 in unfranked dividends the biotech company paid out over the past 12 months.

At the current share price, this sees CSL trading on an unfranked trailing dividend yield of 1.6%.

As you may know, CSL operates three distinct business divisions.

The company's Seqirus segment is one of the world's largest influenza vaccine businesses. CSL's Behring segment focuses on treating rare and serious diseases, and its Vifor segment, acquired in 2022, provides renal disease treatment.

Now, with a potential rebound on the horizon or already underway (shares are up 11% since 11 July), is the ASX 200 stock a good buy for income?

CSL shares: Buy, hold, or sell?

Fairmont Equities' Michael Gable recently ran his slide rule over the company (courtesy of The Bull).

"This global biotechnology giant provides medicines to patients in more than 100 countries," Gable said.

"The company makes vaccines to prevent influenza. Its medicines treat haemophilia and immune deficiencies, and it offers therapies in iron deficiency and nephrology," he added.

Addressing the potential impact on CSL shares of the 200% tariffs United States President Donald Trump has threatened to place on pharmaceutical imports commencing in 2026, Gable said:

The share price is starting to recover from its lows in response to mixed first half results in fiscal year 2025 and uncertainty surrounding US tariffs.

But Gable isn't quite ready to pull the trigger today. Instead, he has a "solid hold" recommendation on CSL shares, partly with that passive income potential in mind.

"The shares have risen from $234.34 on June 27 to trade at $271.56 on July 31. We view CSL as a solid hold for capital growth and income," he concluded.

What did the ASX 200 biotech stock report on the US tariffs?

After Trump announced the potential pharmaceutical import tariffs, CSL noted in April, "At this stage pharmaceutical products are not subject to the reciprocal tariffs."

The company added:

CSL is continuing to assess the broader impact of the tariffs and will monitor further announcements by the US government. We look forward to working with the US administration to ensure American patients retain access to our lifesaving medicines.

CSL shares will be high on investors' radars on 19 August when the company reports its full-year FY 2025 results.

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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