CSL has delivered massive returns to investors through capital gains. However, its dividend is well below the market average. Is CSL’s dividend suitable for dividend savvy investors? CSL Dividend Report
CSL Dividend Summary
|DPS (Trailing 12-Month)||$2.8187|
|Gross DPS (Trailing 12-Month)||$2.8187|
CSL Dividend Dates 2021
|Summary||Interim Dividend||Final Dividend|
|Ex-div date||4 March 2021||2 September 2021|
|Pay date||1 April 2021||30 September 2021|
CSL Dividend History Graph
CSL typically announces a dividend with the release of its half-year results in February and full-year results in August as seen in their financial calendar. CSL Dividends are typically paid twice a year, in April (interim dividend) and September/October (final dividend).
CSL has paid dividends every year since 1994. Including the 2008 GFC, and COVID-19 recessionary period. Most dividends do not have franking credits since a majority of income is generated internationally. They do not offer a Dividend Reinvestment Plan (DRP).
CSL Dividend Yield Comparison
The current CSL yield of 0.98% still manages to exceed the Average Term Deposit rate of 0.4%
Net CSL Dividend Yields Over Time
We can see CSL's net dividend yield has averaged a rate of around 1.3%. From this, we can see CSL's current net yield of 0.98% is below its historic average.
We can see the yield spike in 2021 due to an increase in its dividend payments.
CSL Dividend Payout Ratio and Policy
A companies dividend payout ratio is the ratio of the total dividend sum paid out relative to the net income of the company. It is the percentage of earnings paid to shareholders in dividends.
However, the Board has every confidence that CSL’s strong foundations and disciplined execution of strategy will allow us to return to sustainable growth. The Board has increased the total full year dividend to US$ 2.22 per share as a reflection of this confidence.CSL FY21 Report
Based on current averages CSL's payout ratio is around 43%, which we expect to remain constant for the foreseeable future.
We can note that CSL declares its dividends in USD since a large majority of its income is realized in the US. This is also the reason that CSL shares are often only partially franked or unfranked. CSL also declares the AUD equivalent of its dividend which is paid out to Australian holders.
CSL Share Price
CSL Dividend Policy
CSL does not have a recorded dividend policy. But based on its dividend history investors have come to expect a payout ratio of around 40%. CSL dividends are often unfranked or partially franked.
In FY21 the group dividends represented 42.5% of the Group’s basic earnings per share.
When Will my CSL Dividends be Paid?
The Group typically announces a dividend with the release of its half-year results in February and full-year results in August. Dividends are typically paid twice a year, in April (interim dividend) and September (final dividend). Payment dates are listed on the financial calendar.
CSL Dividend Reinvestment Plan (DRIP)
Does CSL Offer a Dividend Reinvestment Plan? CSL does not currently offer a Dividend Reinvestment Plan (DRP).
A DRIP or dividend reinvestment plan allows investors to automatically reinvest their dividends for additional shares in the company. Using this method, the investor will still receive the franking credit and will still be taxed on the cash value of their dividend.
- In Computershare it’s as simple as going ‘my profile’- ‘Reinvestment plans’ and selecting the company and electing to participate in full or partially. That is either the entire amount or a partial amount of your dividend is reinvested.
- On Link you simply click view details of the company of interest and update it in the ‘payments and tax’ section.
For more information check out our ASX DRIP VS NON-DRIP Guide.