At time of writing, the share price of CSL Ltd [ASX:CSL] is up 1.18% to $301.78.
On a day when the ASX 200 [XJO] is showing signs of enthusiasm, up 2.29%, CSL shares spent some time in the red before eventually following the market higher.
The CSL share price is now on the verge of snapping a short recent downtrend as you can see in the chart above. The chart also indicates a bullish crossover of its 20- and 50-day moving averages. We look at CSL’s prospects going forward.
CSL is a staple of many portfolios, but its recent pullback could be a concern
You hear many stories of people who have 60% or more of their portfolio in CSL shares.
It’s not uncommon given CSL share price’s long-term performance.
And it doesn’t seem that the blood plasma behemoth is going to wither away anytime soon.
The thing though, is that the CSL share price chart seems to be showing signs of the supposedly inexorable rise coming to an end or at least stalling.
From the start of the year, you could say it’s gone sideways.
And it’s a fair question to ask…
At a market cap of more than $135 billion, how much more can CSL grow?
Shift away from bank stocks may have benefitted some, but CSL’s dividend is small now
We covered the hunt for income recently, in our look at the Woolworth’s share price.
With income investors shifting away from the big banks, like Woolworth’s, CSL may also have benefitted from this trend.
With a sound business model, predictable or solid growth can be its own type of income.
But, after its mighty run up the charts (which appears to be faltering), the CSL dividend yield stands at less than 1% now.
Which doesn’t make it much of a dividend play.
If it snaps the downtrend, then another run could be on the cards, especially if market enthusiasm continues.
But there is a lingering feeling out there that a ‘second peak’ in infections could occur as restrictions ease.
Meaning CSL shares may not be the no-brainer they once were.
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It’s a great way to start thinking about income in a post-pandemic world, and it’s free.
For The Rum Rebellion