The CSL Limited (ASX: CSL) share price is dipping in morning trade on Thursday, down 0.9%.
Shares in the S&P/ASX 200 Index biotechnology company closed yesterday trading for $297.10. Shares are currently swapping hands for $294.31.
So why is the CSL share price on the slide today?
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CSL share price drops as stock trades without its dividend
CSL reported its half-year results on 14 February (H1 FY23). The CSL share price closed 0.9% higher on the day.
The company saw total revenue for the six months increase 19% to US$7.2 billion.
Net profit after tax (NPAT) went the other way, falling 8% year on year. Profits were hampered by currency headwinds and increased acquisition costs.
Still, NPAT came in at a healthy US$1.6 billion.
This saw the board declare an interim dividend of US$1.07 per share, unfranked.
That's up 2.9% from the interim dividend paid in the 2022 financial year in US dollar terms.
However, as Aussie investors will receive the payout in Australian dollars, the increase is significantly more. That's because the greenback has gained on our currency over the past 12 months.
The H1 FY22 interim dividend worked out to $1.42 per share in Aussie dollars.
At the current exchange rate of 65.9 Aussie cents to the US dollar, the current dividend comes out to AU$1.62 per share, up 14%.
That's likely close to what investors can expect. CSL will use tomorrow's exchange rate to determine the exact payout.
Which brings us back to why the CSL share price is sliding today.
Most of that looks to be because the biotech stock trades ex-dividend today.
That means anyone buying shares today will no longer be eligible to receive the dividend payout.
Investors who held shares at yesterday's close can expect that payment to hit their bank accounts on 5 April.
