CSL Shares Dividend Forecast till 2028

CSL Ltd (ASX: CSL) is a renowned name in the biotechnology sector, known for its innovative vaccines, blood plasma products and other medical solutions. The ASX healthcare share has proven to be an excellent investment over the last decade, with shares soaring by approximately 300%. However, this article will explore whether investors can expect an optimistic dividend forecast from CSL.

With a market capitalisation of $134.6 billion, CSL is a formidable player in the industry. Over the past decade, it has experienced significant profit growth which has not only bolstered its financial standing but also facilitated impressive dividend growth. In this context, we will look at how far UBS anticipates that the CSL dividend could rise.

In terms of performance for FY24 thus far, CSL's revenue increased by 11% to $8.05 billion during H1 FY24 while net profit after tax (NPAT) grew by 17% to reach $1.9 billion and underlying net profit (NPATA) rose by 11%. For FY24 as a whole, CLS expects its underlying profit to range between $2.9 billion and $3 billion - representing year-on-year growth of anywhere between 13%-17%.

UBS forecasts that CSL can achieve dividends per share amounting US$2.60 in FY24; implying an approximate increase of around 10%. In Australian dollar terms this would translate into an annual dividend payout of A$3.98 per share - yielding about 1.5%.

Moving forward into future years; there are indications that profitability may continue on an upward trajectory – thereby leading dividends higher too.

For instance, UBS projects that net profits could grow substantially by around18 .5%, reaching up-to US$3..6billion with potential increases in dividends extending another estimated10 %toUS$2..86per share.

The projections for subsequent fiscal years remain equally promising. For FY26, CSL’s profits could rise by 19.6% to touch US$4.3 billion, enabling a dividend increase of nearly 10% to US$3.14 per share.

The following year in FY27 may see profit growth hit another high at 20%, thereby pushing dividends up by an estimated 10.2% to reach US$3.46 per share.

In the long term, UBS suggests that by FY28 CSL's profit could witness a steady growth rate of around 10.9%, reaching $5.7 billion - marking almost a staggering surge of about 90% between FY24 and FY28.

If this comes into fruition, it will mean that CSL's dividend per share for FY28 could be as much as US$3..80per share (A$5..82). At the current price levels for CSL shares; this would yield approximately about2 .1%. While not exactly yielding extraordinarily high returns – such estimates still represent healthy growth rates compared with projections for earlier years likeFY24 .

While future predictions are always fraught with uncertainties; the significant investments made by CLS in research and development does suggest strong possibilities for continued expansion and earnings growth in coming years.