How big will the CBA dividend be in 2023?

The Commonwealth Bank of Australia (ASX: CBA) share price has come under pressure with the rest of the market on Monday.

In morning trade, the banking giant’s shares are down 1% to $92.74. This means the CBA share price is now down approximately 6% since this time last month.

While this is disappointing for shareholders, it does make the bank’s shares more attractive for non-shareholders. Particularly given the generous dividend yields that its shares traditionally offer investors.

In light of this, let’s take a look to see what the market is expecting from the CBA dividend in 2023.

How big will the CBA dividend be in 2023?

As a reminder, the banking giant released its full year results in August and declared a fully franked final dividend of $2.10 per share.

This brought the CBA dividend for FY 2022 to a total of $3.85 per share, which was up 10% year over year.

The good news for investors is that the team at Credit Suisse is expecting another decent increase in FY 2023.

According to a recent note, its analysts are forecasting a fully franked $4.25 per share dividend over the next 12 months. This will be a 10.3% increase year over year and, thanks to recent weakness in the CBA share price, will mean a generous 4.6% dividend yield for investors.

Another positive is that although Credit Suisse only has a neutral rating on the shares of Australia’s largest bank, its price target is meaningfully higher than current levels.

Credit Suisse has a price target of $102.80, which implies potential upside of almost 11% for investors. Including dividends, the total potential return widens to almost 16%.

The post How big will the CBA dividend be in 2023? appeared first on The Motley Fool Australia.

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More reading

• Why is the CBA share price falling the hardest of the big four today?
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• Here’s why I decided to buy each of the big 4 ASX 200 bank shares
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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