CSL (ASX:CSL) share price pops on increased dividend

The CSL (ASX: CSL) share price is higher today after the biotech announced a dramatic lift in profits and boosted dividend for the half-year.
The post CSL (ASX:CSL) share price pops on increased dividend appeared first on The Motley Fool Australia. –

medical asx share price represented by doctor giving thumbs up

CSL Ltd (ASX: CSL) shares are trending higher in early trade today following the release of the pharmaceutical giant’s half-year results. At the time of writing the CSL share price is 2.38% higher at $287.89.

Profits in tip-top shape

All eyes were on the CSL share price this morning following the release of the company’s results. Fortunately, the numbers did not disappoint, sending CSL shares higher in morning trade.

The most exhilarating number to come out of the half-year report was the company’s bumper profit. Due to increased margins, CSL managed to deliver a 45% increase to its reported net profit after tax of US$1,810 million.

Additionally, CSL’s revenue grew to US$5,739 million. Although not as substantial an increase in percentage terms, at 16.9%, the top-line growth is significant. The driving force behind the increase was a 9% lift in CSL Behring revenue and a 38% jump in Seqirus revenue.

Importantly, it appears the business segment responsible for the seasonal flu vaccine has contributed largely to the result. Seqirus added US$693 million to earnings before interest and tax – an increase of 112%.

Increased CSL dividend

As a result of the strong numbers, the CSL board increased the interim dividend by 9% to US$1.04 per share. Unfortunately, the weak US dollar to AUD means this payout is 9% lower than the prior corresponding period on a constant currency basis.

By chief executive officer and managing director Paul Perreault’s account, the future for CSL remains rosy: “Demand for CSL’s core plasma, and influenza vaccine products remain robust.”

However, there is expected to be a lift in costs in the next half as the biotech builds its research up again, after falling due to COVID-19 vaccine development efforts.

CSL share price under the microscope

The CSL share price has taken a beating over the last year, down by around 13%. COVID-19 disruptions and vaccine development efforts weighed on the business and its usual operations.

However, in the last month, the share price has experienced a reasonable 7.6% lift as some geographies return to normal.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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.

The post CSL (ASX:CSL) share price pops on increased dividend appeared first on The Motley Fool Australia.

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!