Insights

CSL (ASX:CSL) dividend boosted 10%. Shares slide regardless

CSL shares are falling despite a larger payout to shareholders.
The post CSL (ASX:CSL) dividend boosted 10%. Shares slide regardless appeared first on The Motley Fool Australia. –

The CSL Limited (ASX: CSL) share price is falling despite the biotech business announcing a hefty increase to the CSL dividend.

What’s happening to the CSL share price?

At the time of writing, CSL shares are down 2% after the healthcare business released its FY21 result.

That was despite the business telling investors that its net profit was strong in the financial year that recently finished.

CSL reported that net profit after tax (NPAT) grew by 10% in constant currency terms to US$2.375 billion. This was driven by revenue growth of 10%.

The ASX share boasted of strong growth for its HIZENTRA product as well as its HAE product, HAEGARDA.

CSL’s new distribution model in China is now fully operational, with sales of albumin now normalised.

As readers might imagine in the current environment, there was an “exceptionally strong” performance by its influenza vaccine business, Seqirus.

CSL dividend

The board of CSL decided to declare a final dividend of US$1.18 per share, which would be approximately A$1.61.

That brings the full year dividend to US$2.22 per share. This represents growth of 10% compared to FY20.

Operational highlights

The company said it opened 25 new plasma collection centres during the year. It’s planning to open up to 40 new centres in FY22.

It highlighted collaboration with Terumo to deliver a new plasmapheresis platform.

A new ‘state of the art’ immunoglobulins facility has been completed in Bern, Switzerland. A new $900 base fractionation facility at Broadmeadows is “well advanced”. New global headquarters in Melbourne are also well underway. Seqirus fill and finish expansion projects at Liverpool and Holly Springs are also well advanced. CSL is doing a lot of capital projects.

What is the outlook for CSL and the dividend?

The company said that demand for its core plasma products remains robust. Plasma collections are expected to continue to improve following multiple initiatives that the company has implemented.

CSL is confident of a global recovery, with vaccinations leading to greater social mobility and more normalised conditions.

Increasing collections today underpins its expectation of an increase of supply of therapies to patients. However, increased plasma costs are expected to continue into FY22.

The vaccine business Seqirus is expected to continue to perform well.

CSL sees FY22 as a transitional year as it continues to invest and deliver against its long-term strategy.

FY22 net profit after tax is expected to be between US$2.15 billion to US$2.25 billion at constant currency. That means profit is currently expected to decline a little.

Using the current estimate on Commsec, the CSL dividend (in Australian dollars) is expected to be $3 per share in FY22, which would be small increase on FY21. But then the FY23 CSL dividend is projected to jump to $3.53 per share.

The post CSL (ASX:CSL) dividend boosted 10%. Shares slide regardless appeared first on The Motley Fool Australia.

Should you invest $1,000 in CSL right now?

Before you consider CSL, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CSL wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 midday update: BHP sinks, CSL outperforms guidance, Coles rises

CSL (ASX:CSL) share price in focus after outperforming FY21 guidance
5 things to watch on the ASX 200 on Wednesday

CSL (ASX:CSL) share price slumps despite new board appointment
How did the CSL (ASX:CSL) share price respond last earnings season?

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. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!