Commonwealth Bank of Australia (ASX: CBA) shareholders will have something to cheer about today as the company pays out its latest dividend.
The banking giant is set to reward eligible investors with a fully-franked interim dividend of $1.75 per share.
At Tuesday’s market close, the CBA share price finished 0.22% higher to $106.37.
For context, the S&P/ASX 200 Index (ASX: XJO) also climbed yesterday with a 0.7% gain to 7,464 points.
Let’s take a look at all the details regarding the company’s dividend.
CBA pays out H1 FY22 dividend
CBA reported strong growth across key metrics in its results for the first half of the 2022 financial year.
In summary, cash net profit after tax (NPAT) rose 23% year on year to $4,746 million. This was supported by strong business outcomes, reduced remediation costs, and lower loan loss provisions due to an improved economic outlook.
Management noted that despite the robust performance, this was partially offset by lower margins. This came from customers switching to fixed rate home loans, the impact of rising swap rates, and continued pressure from home loan competition.
Nonetheless, the board opted to increase its interim dividend by 17% on H1 FY21’s $1.50 per share.
When calculating against the current share price, CBA is trailing on a forecast fully-franked dividend yield of 3.29%.
Furthermore, the payout ratio is calculated to be 62% on the bank’s cash NPAT basis. This is slightly under management’s target range of 70% to 80% of earnings. Nonetheless, when looking at a normalised cash NPAT basis, the payout ratio is lifted to 70%.
CBA share price snapshot
Adding to its impressive gains, the CBA share price has surged around 24% in the last 12 months. This has predominantly been driven by its gains achieved last month, up 13%.
CBA has a price-to-earnings (P/E) ratio of 22.54 and commands a market capitalisation of roughly $181.51 billion.
The post The CBA dividend is being paid today. Here’s what you need to know appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.
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