SOL share price
Founded in 1903, Washington H. Soul Pattinson (WHSP) is an investment company with a diversified portfolio of assets across a range of industries and asset classes.
Some of SOL’s largest holdings include stakes in other well-known publicly listed companies such as TPG Telecom (ASX: TPG), New Hope Group (ASX: NHC) and a cross shareholding in Brickworks (ASX: BKW).
SOL’s mission is to deliver superior returns to its shareholders by creating capital growth and steadily increasing dividends as a holding company. It’s the second-oldest publicly listed company on the ASX and has a strong track record of capital growth and dividends. It should be thought of as family-run LIC, for the benefit of all shareholders (who are deeply aligned).
CSL share price
CSL is a global biotechnology company that develops and delivers innovative medicines that save lives, protect public health and help people with life-threatening medical conditions live full lives.
The company is divided into three main business units: CSL Behring, CSL Seqirus and CSL Vifor. Behring, acquired in 2004, manufactures and distributes blood plasma products. Seqirus was formed by a rebranding of BioCSL and the acquired Novartis flu business (bought in 2015) makes flu-related products and performs pandemic-related services for Governments. Finally, Vifor makes products for iron deficiency and nephrology (renal/kidney care).
As previously mentioned, CSL’s plasma collection unit creates life-saving treatments for those will serious illnesses globally. CSL relies on plasma and blood collections to perform its primary businesses; and acquisitions are increasingly part of the CSL business. Investors often use CSL as an indirect play on rising spending on healthcare.
Share price valuation
As a blue chip, one way to have a ‘quick read’ of where the SOL share price is, is to study something like dividend yield thru time. Remember, the dividend yield is effectively the ‘cash flow’ to a share holder, but it can be influenced by yearly or bi-yearly fluctuations. Currently, Washington H Sl Pttnsn nd Cmpny Ltd shares have a dividend yield of around 2.74%, which compares to its 5-year average of 2.54%. Put simply, SOL shares are trading below their historical average dividend yield.
Since it is a more mature-style business, the CSL share price is offering a historical dividend yield of around 1.44%, which compares to its 5-year average of 1.24%. The Rask websites, especially our Rask Education platform, offer free tutorials explaining Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). Both of these models would be a better way to value the CSL share price.
