Commonwealth Bank of Australia (ASX: CBA) shares are paying more dividends than ever before.

And with shares in the S&P/ASX 200 Index (ASX: XJO) bank stock recently trading for $152.75 apiece, down 15.1% from their 6 August close, is CommBank stock now a good buy for passive income?

Let’s have a look.

Should I buy CBA shares for passive income?

While we could look at the forward dividend yields for CBA, those are simply based on analysts’ current best forecasts. Or guesses, if you will.

With the future inherently uncertain, we’ll instead base our investment case on the FY 2026 dividends. Or trailing yields. Just keep in mind that future yields may be higher or lower depending on a number of company specific and macroeconomic factors.

As for FY 2026, CBA paid a fully franked interim dividend of $2.35 a share on 30 March.

When the bank released its FY 2026 results on 12 August, it reported a 7% increase in cash net profit after tax (NPAT) to $11 billion.

This saw management declare a fully franked dividend of $2.70 per share.

That brings the total FY 2026 dividends to $5.05 a share, up 4.1% from FY 2025 and representing a new all-time high passive income payout.

And at the recent CBA share price, it sees Australia’s biggest bank trading at a fully franked trailing dividend yield of 3.3%.

So, how does the dividend yield from the other big four ASX 200 bank stocks compare?

How do the other ASX 200 bank stocks stack up?

While investors buying CBA shares today will receive materially higher future dividend yields than those who bought the stock in the first weeks of August, CBA’s dividend yield still trails its three biggest rivals.

For example, at recent share prices, National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ) shares both trade at dividend yields of 4.4%.

And Westpac Banking Corp (ASX: WBC) shares trade on a 4.5% fully franked trailing dividend yield.

What are analysts saying about CBA shares?

Despite the reliable passive income on offer, most analysts recommend steering away from CommBank stock at the moment. Many remain concerned the ASX 200 bank remains overvalued despite the past month’s share price retrace.

Earlier this week, Shaw and Partners’ James Bills issued a sell recommendation on CBA shares (courtesy of The Bull).

According to Bills:

In our view, the stock trades at a significant premium to domestic peers and on historical valuations.

While the bank maintains a high-quality franchise and strong market position, earnings growth is expected to remain modest amid competitive lending conditions and regulatory pressures.

Recent Federal government initiatives aimed at increasing housing supply and improving affordability is likely to lead to intensifying competition across the mortgage market and place pressure on lending margins.

Current valuations leave limited scope for further earnings driven upside. Investors may wish to take profits and re-deploy capital into opportunities offering stronger risk-adjusted return potential.

The post Down 15% and paying record dividends: Are CBA shares now a good buy for passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

The S&P/ASX 200 Index (ASX: XJO) has underperformed in 2026 compared to international markets. 

At the time of writing, Australia’s benchmark index is essentially flat year to date. 

But Aussie investors aren’t sitting around waiting for the tide to turn. 

Instead, they are looking towards international equities for stronger returns. 

A recent report from Betashares identified how this is playing out in the ASX ETF market. 

According to the report, international equities broke another monthly record in August at $3.8 billion in net inflows, surpassing July’s previous high of $3.56 billion. 

As a result of recent weakness in Australian equities, investors are rethinking their long-term investment plans with international equity ETFs emerging as a clear beneficiary. The category has now set a new all-time monthly record in consecutive months, while Emerging Market ETFs also saw record inflows this month.

For investors looking for global diversification with ASX ETFs, here are three that have performed well in 2026. 

Betashares Capital – Asia Technology Tigers ETF (ASX: ASIA)

One of the best performing ASX ETFs this year from Betashares has been this Asian technology-focused fund. 

Up 32% year to date, it tracks the performance of an index (before fees and expenses) comprising the 50 largest technology and online retail stocks in Asia (ex-Japan). 

The big driver has been AI and semiconductor exposure.

It essentially offers another way of playing the AI boom, through the companies manufacturing the hardware rather than primarily through the US companies selling the software/services.

Betashares MSCI Emerging Markets Complex ETF (ASX: BEMG)

Another theme in 2026 has been emerging markets.

Emerging markets generally refer to countries or regions undergoing fast economic growth. 

Usually, countries that are undergoing growth and industrialisation.

In the case of this fund from Betashares, it offers exposure to large and mid-cap stocks across 24 emerging market countries.

Almost 80% of the fund is made up by companies from Taiwan, South Korea, China, and India. 

By sector, it has a strong weighting towards tech and financials. 

In 2026, it has risen over 14%. 

Vaneck MSCI International Value (AUD Hedged) ETF (ASX: HVLU)

Another internationally focused fund that has outperformed the Australian market this year has been this fund from VanEck. 

It provides a diversified portfolio of 250 international developed market large and mid-cap companies, with high value scores as calculated by MSCI at each rebalance, with returns hedged into Australian dollars.

The value rating is based on: price to book value, price to forward earnings, and enterprise value to cash flow from operations.

It has risen by over 22% year to date. 

The post Aussie investors are pushing their chips into international ASX ETFs – Here are three great options appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in Betashares Capital – Asia Technology Tigers Etf. 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.

A new report from Betashares has reinforced the continued push from Aussie investors into ASX ETFs. 

The Australian ETF industry set new records in August, attracting $7 billion in net inflows and taking total assets to $382 billion. 

International equities led the way, while fixed income remained in focus as yields rose and CGT changes reshaped the investment landscape.

August overview

According to the Betashares Australian ETF Review: August 2026, The Australian ETF industry received an unprecedented $7 billion in net inflows. 

This was amid an ongoing decline in property values and conversation about reforms to CGT arrangements. 

This was above July’s then record of $6.83 billion, marking back-to-back months above $6.5 billion for the first time in the industry’s history. 

The number of ASX ETFs also passed 500 for the first time.

International Equities broke another monthly record in August at $3.8 billion, surpassing July’s previous high of $3.56 billion. 

As a result of recent weakness in Australian equities, investors are rethinking their long-term investment plans with international equity ETFs emerging as a clear beneficiary. 

The category has now set a new all-time monthly record in consecutive months, while Emerging Market ETFs also saw record inflows this month.

Earnings season takeaways

August saw the majority of US and Australian listed companies report in the Q2 and H2 seasons, respectively. 

In the US 86% of companies exceeded EPS estimates, the highest % since Q2 2021, with the broader market achieving an astonishing 50% year-over-year earnings growth rate. 

This outsized growth was attributable in part to unrealised investment gains reported in earnings from big tech’s unlisted AI investments, such as in Anthropic and OpenAI. 

Even excluding these windfalls operating EPS grew at 26%. 

The brightest sign of AI driven profitability gains came through reported 17% profit margins, the highest in more than 15 years. 

These developments continue to support the growth of large cap US technology companies. 

Within Australia there was also reason to rejoice with the ASX 200 achieving its first year of earnings growth since FY22. 

According to Tom Wickenden, Investment Strategist at Betashares, a majority of this was driven by outsized materials sector earnings which reported 36% growth. 

Alarmingly the weight of recent budget changes, rate hikes, and related poor consumer confidence saw next years earnings expectations being cut even as companies met expectations this season.

August winners 

In the month of August, the best performing ASX ETFs were: 

• BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS) – rose 31%
• Betashares Ethereum ETF (ASX: QETH) – rose 30%
• Global X Silver Miners ETF (ASX: SLVM) – rose 30%. 

In terms of top inflows: 

• Vanguard MSCI Index International Shares ETF (ASX: VGS)
• BetaShares Australia 200 ETF (ASX: A200)
• Betashares Funds – Betashares Global Shares ETF (ASX: BGBL). 

Another interesting note from the report was that copper has now overtaken iron ore in Australian mining earnings.

Copper is one of the most important materials in building global AI infrastructure and for the green energy transition. 

Data centres, power distribution, wiring. All of it uses copper at an extraordinary scale. So, while Australian investors cannot buy AI companies directly through a local index, Australia’s mining sector is now one way to benefit from these buildouts.

The post ASX ETF market just surpassed $7 billion in net inflows – Here’s where the money is going appeared first on The Motley Fool Australia.

More reading

• 4 most popular ASX ETFs revealed: survey
• How to make $26,000 of passive income from ASX shares
• 3 reasons to buy the Vanguard MSCI Index International Shares (VGS) ETF
• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
• Why I’d buy this ETF instead of picking 20 ASX shares

Motley Fool contributor Aaron Bell has positions in Vanguard Msci Index International Shares ETF. 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 Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.