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The share price of CSL Ltd, an ASX blue chip stock, has risen by 4.1% since the beginning of 2024, while Pro Medicus Ltd is currently just 1.1% shy of its 52-week high. This article delves into why both CSL and Pro Medicus could be interesting additions to an ASX investing watchlist.
CSL Share Price (ASX:CSL)
CSL is a global biotechnology leader, known for developing and delivering innovative medicines aimed at improving lives, protecting public health, and supporting individuals with life-threatening medical conditions. The company operates through three major divisions:
- CSL Behring: Focuses on the manufacturing and distribution of blood plasma products. This division was acquired in 2004 and continues to play a significant role in CSL's portfolio.
- CSL Seqirus: Formed by the rebranding of BioCSL and the acquisition of Novartis' flu business in 2015, Seqirus specializes in flu vaccines and pandemic-related services, often working with government bodies.
- CSL Vifor: Provides products that target iron deficiency and renal care, further expanding the company’s reach in the healthcare industry.
CSL has established itself as a reliable company for Australian investors, especially given its consistent dividend payouts over the years. Many view an investment in CSL as a way to indirectly benefit from the rising costs of global healthcare, particularly as demand for specialized medical treatments continues to grow.
Pro Medicus Shares in Focus (ASX:PME)
Founded in 1983, Pro Medicus Ltd is a global leader in radiology IT software, providing innovative solutions to hospitals, imaging centers, and healthcare groups worldwide. The company’s core product offerings include:
- Radiology Information Systems (RIS): Supports the management of medical imaging operations, including patient scheduling and billing.
- Picture Archiving and Communication Systems (PACS): Enables healthcare providers to store, retrieve, and share medical images efficiently.
- Visage Software: Pro Medicus' flagship product that allows radiologists to view large medical image files remotely on mobile devices. This technology facilitates faster and more accurate diagnostic decisions, ideally leading to improved patient outcomes.
Pro Medicus has garnered global attention due to its ability to streamline radiology workflows and improve patient care through advanced visualization and mobile diagnostic solutions.
CSL Share Price Valuation
One way to gauge CSL’s current share price is by examining its dividend yield over time. The dividend yield represents the return a shareholder receives in the form of dividends, though it can vary based on payments and share price changes. At present, CSL shares offer a dividend yield of 1.32%, slightly below the company’s 5-year average yield of 1.50%. This indicates that CSL shares are currently trading at a level below their historical average in terms of dividend yield.
Both CSL Ltd and Pro Medicus Ltd are noteworthy ASX healthcare stocks, with CSL recognized for its consistent dividend payouts and leadership in biotechnology, and Pro Medicus known for its innovative radiology IT solutions. As the global healthcare sector continues to grow, these two companies could present interesting opportunities for investors to monitor.
