Regardless of what the market has in store, it's set to be a good day for CSL Limited (ASX: CSL) shareholders today.
The time has come for the company to pay its latest final dividend. Here's what you need to know.
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It's payday for CSL shareholders
In August, CSL lifted the lid on its FY22 results. In the process, the ASX 200 biotech giant declared a final dividend of US$1.18, partially franked at 10%.
For this dividend, CSL has used an AUD/USD exchange rate of 67.11 US cents, so it's equivalent to around $1.76 in Aussie dollars.
CSL shares went ex-dividend for this payment back on 6 September. Therefore, any CSL shares bought on or after this date won't be eligible for today's payout.
CSL hasn't run a dividend reinvestment plan (DRP) since 2004, so shareholders will be receiving this dividend in cash.
Today's US$1.18 payment is in lockstep with the final dividend CSL declared in FY21. Total dividends were also in line with the prior year, coming in at US$2.22 per share.
In Aussie dollars, CSL has paid out roughly $3.18 in dividends this year. At current levels, this puts CSL shares on a trailing dividend yield of around 1.1%.
Looking ahead, broker Goldman Sachs is forecasting CSL to raise its annual dividends by 14% in FY23 to US$2.52. This represents a prospective forward dividend yield of 1.3%.
How did CSL fare in FY22?
CSL maintained its annual dividend payouts in FY22 despite its net profit after tax (NPAT) sliding by 6% to US$2.3 billion.
COVID lockdowns put a clamp on CSL's plasma collections, which are a crucial component for manufacturing its treatments.
As a result, the company's Behring business delivered muted revenue growth of 4% in FY22. What's more, collections came at a higher cost, which pushed down gross margins.
CSL's vaccine business, Seqirus, helped to offset some of this weakness. Seqirus achieved full-year revenue growth of 13%, driven by growth in seasonal influenza vaccines.
Where to next for the CSL share price?
CSL shares have held up fairly well so far in 2022, falling by just 1% to currently sit at $287.40.
They've comfortably outperformed the S&P/ASX 200 Index (ASX: XJO), which has tumbled 10% since the beginning of the year.
Taking a look around the grounds, brokers are mostly bullish on the CSL share price.
Citi currently has a buy rating on CSL shares with a 12-month price target of $340, implying potential upside of 18.3%.
Analysts at Morgan Stanley have an overweight rating on CSL shares and a 12-month price target of $323, which implies potential upside of 12.4%.
JP Morgan also has an overweight rating on CSL shares, with a price target of $330. This represents potential upside of 14.8% over the next 12 months.
Meanwhile, analysts at Goldman Sachs aren't quite ready to press the buy button yet. The broker has a neutral rating on CSL shares and a 12-month price target of $291, roughly in line with where the CSL share price is sitting today.
