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Highlights
- Wesfarmers shares have increased by 21.6% in 2024.
- CSL is 25.9% above its 52-week low, showing recovery.
- Wesfarmers offers a dividend yield of 2.83%, below its 5-year average.
Wesfarmers Ltd (ASX:WES) has experienced strong growth in 2024, with its share price rising by 21.6% since the beginning of the year. Wesfarmers, founded in 1914, is a major Australian conglomerate with a diverse range of businesses spanning retail, chemicals, fertilisers, and industrial safety. Headquartered in Perth, the company operates primarily in Australia and New Zealand.
One of Wesfarmers' core strengths lies in its ability to acquire and develop businesses. A prime example of this is its acquisition of Coles Group in 2007, which it later spun out in 2018. However, a significant portion of Wesfarmers' operating profit—more than 50%—comes from its ownership of Bunnings, Australia's leading hardware and home improvement chain. Wesfarmers initially invested in Bunnings in 1987 and acquired full ownership in 1994 for $594 million.
In addition to Bunnings, Wesfarmers owns other well-known brands such as Kmart, Target, Officeworks, and Priceline Pharmacy. Known for its blue-chip status on the ASX, Wesfarmers is recognized for consistently paying dividends to its shareholders.
CSL Shares Performance (ASX:CSL)
CSL Ltd, a global biotechnology leader, is currently 25.9% above its 52-week low. The company focuses on developing life-saving medicines and treatments for people with serious medical conditions. CSL operates through three main business units: CSL Behring, CSL Seqirus, and CSL Vifor.
- CSL Behring is a key player in the blood plasma product industry, acquired by CSL in 2004.
- CSL Seqirus was formed after acquiring Novartis' flu business and specializes in flu vaccines and pandemic-related services.
- CSL Vifor produces treatments for iron deficiency and kidney-related health issues.
CSL has built a strong reputation among Australian investors for its consistent dividend payments and solid performance, often viewed as a stable part of the healthcare sector as medical costs continue to rise globally.
Wesfarmers Share Price and Dividend Yield
One quick way to assess Wesfarmers' share price is through its dividend yield, which currently stands at 2.83%, slightly below its 5-year average of 3.36%. This lower yield could be a result of either a rising share price or a change in dividend payouts. However, Wesfarmers has demonstrated growth in dividends, with last year's payment higher than the 3-year average.
Meanwhile, CSL offers a historical dividend yield of 1.37%, compared to its 5-year average of 1.50%, reflecting its steady approach to rewarding shareholders.
Both Wesfarmers and CSL have shown resilience in their respective sectors, offering opportunities for those looking at strong and diversified companies on the ASX.
