Over the years, CSL Ltd (ASX: CSL) shares have rarely been on the radar of income investors.
That's not because the company doesn't pay dividends.
The biotechnology giant has a long track record of payouts to its shareholders.
However, due to the high earnings multiples that its shares would trade on, the dividend yield has always been very modest.
But due to a significant multiple compression over the past 12 months, that has now changed.
So, rather than being a growth stock, is CSL now an ASX dividend stock? Let's run the numbers and find out.
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CSL dividends
According to a note out of Bell Potter this week, its analysts are expecting the company to pay dividends of $3.97 per share in FY 2026, then $4.25 per share in FY 2027, and finally $4.65 per share in FY 2028.
Based on the current CSL share price of $98.55, this would mean attractive dividend yields of 4%, 4.3%, and 4.7%, respectively.
It is a similar story at Morgans. Its analysts believe CSL shares could provide generous dividend yields in the near term.
The broker is forecasting dividends of approximately $4.42 per share in FY 2026 and then $4.74 per share in FY 2027. This equates to dividend yields of 4.5% and 4.8%, respectively.
Should you buy this ASX stock for dividends?
At present, Bell Potter is sitting on the fence with CSL shares.
In response to its disappointing guidance update, the broker has retained its hold rating with a reduced price target of $100.00. It said:
Earnings decreases drive large reductions to our PE and DCF-based valuations. We increase the PE valuation weighting to 75% and reduced the multiple to 12.0x. This leads to a reduction of our PT to $100 (from $155). We maintain our Hold recommendation. CSL's global biopharma peers trade on a median of 14x FY27 PE.
We think a discount is warranted for CSL considering the declining underlying earnings outlook across FY26-27, the lack of stable management, and series of credibility hits following several disappointing results/trading updates. CSL is trading on ~12x our forecast NPATA for FY27. The difference between NPATA to statutory NPAT remains uncertain given the $5b of additional impairments announced today with unclear spread across FY26-27.
However, Morgans has retained its buy rating with a $147.59 price target. It said:
While forward earnings visibility remains limited, we believe the current valuation increasingly discounts a structurally impaired plasma franchise, which we do not believe the current industry dynamics support. We reduce FY26-28 forecasts and lower our blended DCF, PE and EV/EBITDA-based target price to A$147.59. Given CSL's global leadership positions, structurally growing end markets and operational initiatives, we retain a BUY rating.
