The year 2024 has been eventful for many ASX-listed companies, and two prominent names stand out: BHP (ASX:BHP) Group Ltd and CSL Ltd. While BHP's share price has experienced a notable decline, CSL’s shares, a notable ASX growth stock, are approaching their 52-week high. Here’s a closer look at these two stocks and why they might deserve attention.
BHP Group Ltd (ASX: BHP)
BHP Group Ltd, formerly known as BHP Billiton (LON:BHPB), is one of the world’s largest natural resources companies, with a history dating back to 1885. The company operates across three main segments: Copper and related minerals (including gold, uranium, silver, and zinc), Iron Ore, and Coal (both metallurgical and energy).
BHP is well-regarded for its consistent dividend payments, making it a staple in many ASX share portfolios. If you are invested in popular ETFs, LICs, or industry super funds, BHP is likely part of your holdings. The company’s stability and maturity are reflected in its performance metrics, such as its Return on Invested Capital (ROIC) and revenue growth.
In the 2023 fiscal year, BHP Group Ltd achieved an impressive ROIC of 28.10%. This figure indicates strong financial health, as a ROIC above 10% is considered robust for a mature company. Additionally, BHP has experienced a compounded revenue growth rate of 22.7% in recent years, highlighting its ability to sustain and grow its revenue.
However, BHP’s share price has fallen by 18.8% since the beginning of 2024. Despite this decline, the stock continues to be a prominent player in the resources sector. The dividend yield, currently at approximately 6.36%, is below its 5-year average of 9.38%, suggesting that the shares are trading at a lower yield compared to historical levels. This lower yield could be an opportunity for those considering long-term investment in a blue-chip stock with a solid dividend history.
CSL Ltd (ASX: CSL)
CSL Ltd is a leading global biotechnology company known for its innovative medicines that save lives and enhance public health. The company operates through three main units: CSL Behring, CSL Seqirus, and CSL Vifor. CSL Behring specializes in blood plasma products, CSL Seqirus focuses on flu-related products and pandemic services, and CSL Vifor provides treatments for iron deficiency and kidney care.
CSL's plasma collection business is crucial for its operations, providing essential treatments for severe illnesses worldwide. The company’s growth strategy often includes acquisitions, and it is considered a proxy for increasing healthcare spending.
As of 2024, CSL’s share price is within 3% of its 52-week high, reflecting its strong performance and investor confidence. CSL is seen as a reliable play in the biotechnology sector, benefiting from its extensive product portfolio and global reach.
Key Takeaways
- BHP Group Ltd: With a significant decline in share price this year, BHP remains a key player in the resources sector. Its strong financial metrics and consistent dividend payments are notable, even as its current dividend yield is below historical averages.
- CSL Ltd: Approaching its 52-week high, CSL continues to demonstrate resilience and growth in the biotechnology field. The company's robust performance and focus on life-saving treatments make it a noteworthy stock to follow.
Both BHP and CSL offer distinct investment opportunities and insights into their respective sectors. Monitoring their performance and market developments can provide valuable information for those interested in these leading ASX companies.