If you're lucky enough to have $10,000 available to invest, would it make sense to buy CSL Limited (ASX: CSL) shares?
Well, with the biotherapeutics giant widely regarded as one of Australia's highest-quality companies and its shares down 9% over the last 12 months, it certainly is an attractive proposition.
Let's dig deeper into things and see what that $10,000 could be worth in 12 months.
$10,000 invested in CSL shares in 12 months
At present, CSL shares are changing hands for $267.10. This means that an investment of $10,000 would see you end up owning 37 units.
The good news is that brokers are overwhelmingly positive on the company and see plenty of upside for its shares over the next 12 months. This could potentially mean investors are getting a bit of a bargain at current prices.
For example, both Citi and UBS currently have buy ratings on the company's shares with a $340 price target.
If CSL shares were to rise to this level over the next 12 months, your 37 shares would be worth $12,580. That's a return of almost 26% or $2,580 on your original investment.
In addition, Citi is expecting CSL to pay dividends per share of $4.21 in FY 2024. This would add a further $155.77 of income to your return that could be reinvested or withdrawn.
All in all, if Citi is on the money with its recommendation, a $10,000 investment in CSL shares when the market reopens could lead to a total return of a touch under 27.5% or $2,750.
That's almost triple the average annual total return of 9.6% for ASX shares over the last 30 years.
