Here’s the CBA dividend forecast through to 2026

Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for income investors.

It isn’t hard to see why this is the case.

Earlier this month, the banking giant released its half-year results and reported a 3% decline in cash net profit after tax to $5,019 million.

However, that didn’t stop the CBA board from lifting the bank’s fully franked interim dividend by 2.4% to $2.15 per share.

This represents a payout ratio of 72%, which means that approximately $3.6 billion of CBA’s cash profits are being distributed to shareholders next month.

But what’s next for the CBA dividend? Should we expect more bumper payouts in the future? Let’s find out what analysts are expecting from the bank.

CBA dividend forecast

According to a note out of Goldman Sachs, its analysts have upgraded their medium term earnings and dividend estimates following the release of the bank’s half-year results.

The broker now expects CBA to pay a fully franked final dividend of $2.40 per share for the second half of FY 2024.

This will bring the bank’s total dividends for FY 2024 to $4.55 per share, which represents an attractive dividend yield of approximately 4% for investors. It also means a modest 1.1% increase on FY 2023’s dividend of $4.50 per share.

What’s next?

Looking further ahead, Goldman Sachs now expects the CBA dividend to be $4.55 per share again in FY 2025. This will mean another dividend yield of approximately 4% for shareholders.

And for a third year in a row, Goldman believes that the bank will be paying out a fully franked $4.55 per share in FY 2026. So, that is of course another 4% yield for shareholders to look forward to that year.

The post Here’s the CBA dividend forecast through to 2026 appeared first on The Motley Fool Australia.

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• High rates, falling profits: Why are ASX bank shares losing out this reporting season?
• You need to act fast if you want to receive the next CBA dividend
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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 positions in and has recommended Goldman Sachs Group. 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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