Payday? Here's why the CSL share price is sliding this morning…

The CSL share price is underperforming today, but for good reason…

| More on:
a woman looks down at her phone with a look of concern on her face and her hand held to her chin while she seriously digests the news she is receiving.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The ASX 200 has had a rough start to the week so far on Monday
  • But CSL shares are faring even worse
  • CSL shares are trading ex-dividend today

The S&P/ASX 200 Index (ASX: XJO) has had a bit of a topsy-turvy start to the trading week so far this Monday. At the time of writing, the ASX 200 is down by 0.64% after spending time in both positive and negative territory already today. But let's check out what the CSL Limited (ASX: CSL) share price is up to.

At the time of writing, CSL shares are trading for $254.12 each. That's down around 1.62% so far.

So is there any good reason why CSL shares might be trailing the broader market so decisively today?

Well, as it happens, there is.

Today is a big day on the CSL shareholder calendar. It is the day this ASX 200 healthcare company trades ex-dividend for its upcoming interim payment. Last month, CSL delivered its half-year earnings report. Along wth a mixed-bag of results, this naturally included details about CSL's next dividend payment.

This upcoming dividend will be worth US$1.04 per share for investors when it is paid out on 6 April. The final value in Australian dollars is yet to be determined. But it works out to be approximately $1.41 on today's exchange rates. The dividend will come unfranked. At US$1.04 per share, it is also flat on last year's interim dividend.

So the fact that this dividend has now gone 'ex' is probably at least partially why the CSL share price is showing weakness today. When a company trades ex-dividend, the value of the dividend payment in question leaves the company's share price. That's because, from today, no new CSL shareholders will be entitled to receive the company's upcoming payment. This means the shares are effectively worth less today than they were on Friday.

CSL share price snapshot

Like many ASX 200 shares, CSL hasn't had the easiest ride in 2022 so far. This healthcare giant has lost more than 14% year to date. However, the company is still up around 3.5% over the past 12 months, and up more than 102% over the past five years.

At the current CSL share price, the company has a market capitalisation of $124.7 billion, with a dividend yield of 1.14%.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns 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.

More on Healthcare Shares

A young office worker is surrounded by peers who are clapping and congratulating her.
Healthcare Shares

Up 140% in 2024, here's why this ASX 200 healthcare stock is making news again today

It’s yet another positive update for this stock.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 ASX healthcare shares surging on big news

The ASX healthcare sector is higher on Tuesday and these stocks are among the strongest performers.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

The pros and cons of buying CSL shares right now

It’s an interesting time to consider this healthcare giant.

Read more »

Vanadium Resources share price person riding rocket indicating share price increase
Healthcare Shares

Why did this ASX biotech stock explode 52% higher on Monday?

Shareholders of this stock were smiling today. What happened?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why is everyone talking about ResMed shares?

It’s been a good year for ResMed shareholders. Let’s find out why.

Read more »

Male doctor in a lab coat working at laptop looking serious.
Healthcare Shares

This bombshell for ASX healthcare shares could hit 6 million Australians

This could have a large impact.

Read more »

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.
Healthcare Shares

2 ASX healthcare shares having a stellar run today

The ASX healthcare sector is down today but these two stocks are bucking the trend.

Read more »

A company manager presents the ASX company earnings report to shareholders at an AGM.
Healthcare Shares

Why this $13 billion ASX 200 healthcare stock is surging today

A change in sentiment for the healthcare player.

Read more »