How does the CBA dividend stack up against its ASX 200 peers?

Commonwealth Bank of Australia (ASX: CBA) is the S&P/ASX 200 Index (ASX: XJO)’s biggest banking share, boasting a market capitalisation of around $157 billion. But how do CBA’s dividends stack up against those offered by its peers?

Interestingly, despite posting a seemingly healthy dividend yield, it doesn’t compare well to most of its ASX 200 bank peers. In fact, the banking giant’s 4% dividend yield is the smallest of the big four.

CBA shares offer 4% dividend yield

Over the past 12 months, each CBA share has offered $3.75 in dividends.

This is made up of a $2 final dividend for financial year 2021, announced in August. The bank’s final dividend reflected a 104% increase on that of the prior comparable period.

It was followed by a $1.75 interim dividend announced in February, representing a 17% increase.

On top of that, CBA shares have paid out fully-franked dividends since the early 90s. That means they could offer some shareholders a better deal on their tax.

Considering CBA’s current share price – $93.15 – the bank’s stock is trading with a 4.02% dividend yield. That’s notably lower than the yield offered by the bank’s big four peers.

Here’s how that compares to fellow ASX 200 banking giants at Friday’s close:

• National Australia Bank Ltd (ASX: NAB) offered a dividend yield of nearly 5%
• Westpac Banking Corp (ASX: WBC) boasted a dividend yield of around 6%
• Australia and New Zealand Banking Group Ltd (ASX: ANZ) offered a dividend yield of around 6.3%
• Macquarie Group Ltd (ASX: MQG) offered a dividend yield of around 3.6%

Of course, it’s also worth considering the performance posted by CBA shares.

Over the last 12 months, the CBA share price has fallen around 6%.

That means it’s outperformed most of its ASX 200 peers. It’s only been bested by shares in Westpac and Macquarie, which posted gains of around 7% and 10%, respectively.

The post How does the CBA dividend stack up against its ASX 200 peers? appeared first on The Motley Fool Australia.

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More reading

• Own CBA shares? Here’s why this analyst doesn’t foresee further buybacks
• What’s the outlook for ASX 200 dividend shares in FY23?
• Could rising rates hurt ASX 200 bank shares in the longer run?
• Why are ASX 200 bank shares responding positively to higher interest rates?
• What happened with the CBA share price in the 2022 financial year? 

Motley Fool contributor Brooke Cooper 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 recommended Macquarie Group Limited and Westpac Banking Corporation. 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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