CSL Limited

(AI video summary)

This video was created on 28 October 2025 for IG audiences by ausbiz.

ASX code: CSL

CSL Limited faces uncertainty amid declining vaccination rates

CSL Limited CSL Limited is under the spotlight as its shares saw a significant drop during its annual general meeting (AGM), reflecting challenges ahead. The company warned of a decline in United States (US) influenza vaccination rates for the financial year (FY) 2026 and adjusted its net profit growth forecast to 4% to 7%, excluding restructuring costs. Uncertainty around US vaccination rates is expected to persist into 2027 and 2028, prompting CSL to lower its after-tax profit expectations to the high single digits.

Dividend yield concerns for income investors

Despite historical growth potential, CSL's current dividend yield remains below 2%, making it a less attractive option for income-focused investors. Challenges include weaker US flu vaccination rates and delays in the Seqirus vaccine unit demerger. Analysts have adjusted growth projections from 7% to 10% down to 4% to 7%.

Investment outlook

CSL traditionally offers dividends, though limited, due to reinvestment strategies. The long-term income growth outlook is a factor for investors in healthcare stocks, which reinvest earnings. Currently, finding alternatives might be prudent while CSL navigates recovery.