Commonwealth Bank Dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yield

Commonwealth Bank is a benchmark company for many mum-and-dad style investors, and it’s easy to see why! This article will report in detail, the Commonwealth Bank Dividend.

Commonwealth Bank CBA, has delivered excellent returns for investors over the past decade, averaging 9.18% yearly returns (excluding dividends). After accounting for reinvested dividends returns have been 18.50% per year.

CBA has far outperformed the average market return of 11.9% in the past decade.

They also recently announced their FY21 dividend and buy-back scheme.

CBA Dividend Snapshot

Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,
  • Previous Full Year Net Dividend Payment: $2.98
  • Previous Full Year Gross Dividend Payment: $4.257
  • Previous Average Net Dividend Payment (2019): $4.31 (Yield at current price: 4.31%)
  • Previous Average Gross Dividend Payment (2019): $6.157 (Yield at current price: 6.157%)
  • Franking: 100%
Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,

Commonwealth Bank Dividend Dates 2021

Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,
Full year results and final dividend announcement date11 Aug 2021
Ex-dividend date for final dividend17 Aug 2021
Record date for final dividend18 Aug 2021
DRP participation deadline19 Aug 2021
Final dividend payment date29 Sep 2021*

CBA Dividend History Graph

The Banking sector has been one of the favorites for investors over the years due to its decent returns and solid dividend history. It’s no surprise why the sector makes up around 30% of the entire market index. Over the past decade, big banking stocks have managed to maintain a steady flow of income for investors, with an exception of the COVID dip.

Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,

CommBank typically announces a dividend with the release of its half-year results in February and full-year results in August as seen in their financial calendar.  Dividends are typically paid twice a year, in March (interim dividend) and September (final dividend). Should I buy CBA Shares?

CBA has paid biannual dividends every year since 1992. This included during the GFC in 2008 and the COVID-19 recessionary period. All dividends paid by CBA during this time have been fully-franked. They also offer a Dividend Reinvestment Plan (DRP).

CBA Dividend Yields Comparison

CBA’s current gross divided yield is 4.25%. This is slightly lower than the other major banks (WBC, NAB, and ANZ). It is also slightly below the market average of 4.7%.

Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,

Net CBA Dividend Yields Over Time

We can see CBA’s net dividend yield has averaged a rate of 5-6%. From this we can CBA’s current net yield of 2.98% is below it’s historic average. We can see the yield spike in 2020 due to a signficant share price reduction. This yield tapered off as the share price increased, but earnings were still impacted.

Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,

CBA Dividend Payout Ratio and Policy

Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,

A companies dividend payout ratio is the ratio of the total dividen sum paid out relative to the net income of the company. It is the percentage of earnings paid to shareholders in dividends. Based on current averages CBA payout ratio is 65%, which we expect to increase in the coming years to a ratio of 74%.

Based on FY20 results CBA paid out $2.98 per share to investors. This comprised an interim payment of $2 and a final dividend of $0.98. Both were fully franked, hence giving a gross payment of $4.257 to shareholders.

We note in this report CBA annouced a payout ratio of 49.95%, inline with AHPRAs guidelines. These guidelines are based upon maintain liquidity in the current recessionary period.

“Banks should seriously consider deferring decisions on the appropriate level of dividends until the outlook is clearer”

APRA has indicated that for the remainder of the calendar year boards should: 

  • seek to retain at least half of their earnings when making decisions on capital distributions (and utilise dividend reinvestment plans and other initiatives to offset the diminution in capital from capital distributions where possible)
Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,

The amount that is not paid to shareholders is retained by the company to pay off debt or to reinvest in core operations. It is sometimes simply referred to as the ‘payout ratio.’

CBA FY21 Final Dividend (August 2021)

On the 11th of August CBA released their FY21 Full-year results and announced the final dividend, as well as an off-market share buyback.

Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,

CBA Highlights:

  • Cash NPAT up 19.8%
  • Strong balance sheet and surplus capital
  • Final dividend $2.00 – full year dividend $3.50
  • $6bn off-market share buy-back
Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,

The final dividend of $2.00 per share is fully-franked and brings the full year 2021 payment to a net of $3.50. Over the period CBA returned $6.2 Billion to shareholders via dividends.

Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,

The Ex-Dividend date is 17th of August 2021 with a payment date of 29th September.

The final dividend payout ratio was 71% of the Bank’s cash earnings, or ~75% after normalizing for long-run loan loss rates.

The Bank will continue to target a full-year payout ratio of 70-80% of cash NPAT and an interim payout ratio of ~70% of cash NPAT. In considering the sustainability of dividends, the Board will continue to take into account a number of factors, including long-term average loss rates.

CBA Off-Market Share Buy-Back

A share repurchase is where a company will buy back its shares from investors. This can be completed one of two ways; via an on-market buyback or off-market buyback.

In an off-market buyback, the company will offer investors the opportunity to sell their shares back to the company at a fixed price. This action reduces the total number of shares outstanding, in return investors will own a larger percentage of the company and the share price will increase to reflect this.

The company will then either cancel the shares or hold them, so as they are not publicly traded. The EPS of the company will be artificially raised as the formula earnings/shares have been altered whereas the number of shares PE may temporarily decrease due to an increase in EPS. Learn more about Share Buy-Backs Here.

Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,

In calibrating the size of the buy-back, the Board considered:

• The capital generated from strategic divestments.
• The level of future organic capital generation and expected divestment proceeds.
• The size of franking credit surplus and future ability to fully frank dividends and hybrid distributions.

The Buy-Back will be conducted through a tender process, which provides Eligible Shareholders with an opportunity to sell some or all of their Shares to CBA:

  • At a discount of between 10% and 14% (inclusive, and at 1% intervals) to the Market Price
  • As a Final Price Application, which is an election to sell your Shares at the Buy-Back Price

What is the Capital Component of the Buy-Back Price? $21.66

What is the Dividend Component of the Buy-Back Price? The Dividend Component will be equal to the Buy-Back Price less the Capital Component of $21.66. The Dividend Component is expected to be fully franked.

Buy-Back Ex-entitlement Date17 August 2021
Buy-Back Record Date18 August 2021
Buy-Back Period opens30 August 2021
Buy-Back Period closes1 October 2021
Buy-Back Date4 October 2021
Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,

CBA Share Price

CBA Dividend Policy

With the commencement of the 2021 calendar year, AHPRAs 50% payout guideline is no longer current, as such we will expect CBA to return to their dividend policy.

Commonwealth Banks Dividend Policy is:

Commonwealth Bank of Australia will seek to:

  • pay cash dividends at strong and sustainable levels;
  • target a full-year payout ratio of 70% – 80%; and
  • maximise the use of its franking account by paying fully franked dividends

Source: CBA

When are Dividends Paid?

When will my Commonwealth Bank Dividend be Paid?

Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,

The Bank typically announces a dividend with the release of its half year results in February and full year results in August.  Dividends are typically paid twice a year, in March (interim dividend) and September (final dividend).  Payment dates are listed on the financial calendar

Source: CBA

CBA Dividend Reinvestment Plan (DRIP)

Commonwealth bank dividend, CBA dividend, CBA dividend dates 2021, CBA dividend history, CBA dividend yields,

A DRIP or dividend reinvestment plan allows investors to automatically reinvest their dividends for additional shares in the company. Using this method, the investor will still receive the franking credit and will still be taxed on the cash value of their dividend. 

The simplest way to elect to participate in a company’s DRIP is through the related share registry (i.e. Computershare or Link Market Services). In Computershare it’s as simple as going ‘my profile’- ‘Reinvestment plans’ and selecting the company and electing to participate in full or partially. That is either the entire amount or a partial amount of your dividend is reinvested. On Link you simply click view details of the company of interest and update it in the ‘payments and tax’ section.

For more information check out our ASX DRIP VS NON-DRIP Guide

Commonwealth Dividend History

Distribution TypeDividendFrankingEx-Dividend DatePayment DateDividend Yield
Final$2.00100%17 Aug 202129 Sep 20211.85%
Interim$1.50100%16 Feb 202130 Mar 20211.72%
Final98c100%19 Aug 202030 Sep 20201.35%
Interim$2.00100%19 Feb 202031 Mar 20202.25%
Final$2.31100%14 Aug 201926 Sep 20192.93%
Interim$2.00100%13 Feb 201928 Mar 20192.70%
Final$2.31100%15 Aug 201828 Sep 2018
Interim$2.00100%14 Feb 201828 Mar 2018
Final$2.30100%16 Aug 201729 Sep 2017
Interim$1.99100%22 Feb 20174 Apr 2017
Final$2.22100%17 Aug 201629 Sep 2016
Interim$1.98100%16 Feb 201631 Mar 2016
Final$2.22100%18 Aug 20151 Oct 2015
Interim$1.98100%17 Feb 20152 Apr 2015
Final$2.18100%19 Aug 20142 Oct 2014
Interim$1.83100%17 Feb 20143 Apr 2014
Final$2.00100%19 Aug 20133 Oct 2013
Interim$1.64100%18 Feb 20135 Apr 2013
Final$1.97100%20 Aug 20125 Oct 2012
Interim$1.37100%20 Feb 20125 Apr 2012
Final$1.88100%15 Aug 20116 Oct 2011
Interim$1.32100%14 Feb 20111 Apr 2011
Final$1.70100%16 Aug 20101 Oct 2010
Interim$1.20100%15 Feb 20101 Apr 2010
Final$1.15100%17 Aug 20091 Oct 2009
Interim$1.13100%16 Feb 200923 Mar 2009
Final$1.53100%18 Aug 20081 Oct 2008
Interim$1.13100%18 Feb 20082 Apr 2008
Final$1.49100%20 Aug 20075 Oct 2007
Interim$1.07100%19 Feb 20075 Apr 2007
Final$1.300%14 Aug 20065 Oct 2006
Interim94c100%20 Feb 20065 Apr 2006
Final$1.12100%15 Aug 200523 Sep 2005
Interim85c100%14 Feb 200531 Mar 2005
Final$1.04100%16 Aug 200424 Sep 2004
Interim79c100%16 Feb 200430 Mar 2004
Final85c0%25 Aug 20038 Oct 2003
Interim69c100%17 Feb 200328 Mar 2003
Final82c100%26 Aug 20028 Oct 2002
Interim68c100%18 Feb 200228 Mar 2002
Final75c100%27 Aug 20018 Oct 2001
Interim61c100%19 Feb 200130 Mar 2001
Final72c100%4 Sep 20009 Oct 2000
Interim58c100%17 Feb 200031 Mar 2000
Final66c100%18 Aug 199930 Sep 1999
Interim49c100%16 Feb 199926 Mar 1999
Final58c100%19 Aug 199830 Sep 1998
Interim46c100%18 Feb 199827 Mar 1998
Final57c100%14 Aug 199730 Sep 1997
Interim45c100%19 Feb 199727 Mar 1997
Final52c100%29 Aug 199630 Sep 1996
Interim38c100%28 Feb 19961 Apr 1996
Final46c100%27 Sep 199525 Oct 1995
Interim36c100%3 Apr 199528 Apr 1995
Final36c100%28 Sep 199426 Oct 1994
Interim24c100%31 Mar 199429 Apr 1994
Final22c100%29 Sep 199327 Oct 1993
Interim20c100%2 Apr 199330 Apr 1993
Final20c100%1 Oct 199230 Oct 1992
Interim20c100%3 Apr 199230 Apr 1992

Full CBA Analysis:

Should I Buy CBA Shares 2021?

Learn How We Analyze A Company:

The Ultimate Stock DD Checklist For Beginners

What Are We Currently Buying?

In the past few weeks here’s some exciting companies we jumped in on:

Taking A Bet On PointsBet

Initial Public Offering Askari Metals Will Be Epic

Leave a Reply

Your email address will not be published. Required fields are marked *


Introducing our latest and one of our largest portfolio holdings Askari Metals (AS2). 

The Company has 5 prospective copper-gold projects in tier 1 mining jurisdictions in nearology to mining giants.

You May Also Like

The Ultimate Stock DD Checklist For Beginners 2021

Are you sick of getting Fooled into terrible stocks? Stock DD or…

Should I Buy Flight Centre Shares 2021

Flight Centre’s share price has been bid down massively following the COVID…

Should I Buy CBA Shares? 2021

With CBA reaching all-time highs, is now a dangerous time to buy…