
Commonwealth Bank of Australia vs Coles Group shares
Thinking about putting a decent sum of money to work at age 50? You might be weighing up blue-chip mainstays like Commonwealth Bank of Australia (ASX: CBA) and Coles Group Ltd (ASX: COL). Both are household names, offer steady dividends, and can anchor a portfolio for long-term wealth â but which really stacks up as the better buy now?
The case for Commonwealth Bank of Australia
Commonwealth Bank of Australia is the country’s largest bank by market value, with a history dating back over a century. It’s truly a financial powerhouse, serving millions of Aussies and Kiwi customers across banking, funds management, insurance, and broking. CBA’s brand is instantly recognisable and its digital banking platform is widely regarded as an industry leader.
Looking at the fundamentals:
- P/E Ratio: 23.38 â a not-uncommon range for the big banks in recent years.
- Dividend yield: 3.31%, fully franked, with a long record of consistent, rising payouts (recent years showing annual increases).
- Market Cap: $251.64 billion â it absolutely dominates the ASX banking sector by size.
- CBA’s earnings per share is 6.517, supporting its substantial dividends.
- Importantly for many retirees or near-retirees, it franks all its dividends at 100%.
The case for Coles
Coles is a giant of the Australian supermarket scene, serving everyday groceries to millions of households each week. The company includes Coles Supermarkets, Coles Liquor, and significant online channels, making it a true consumer staple. Once part of the old Coles Myer empire, it found new independence after spinning off from Wesfarmers in 2018.
Some standout numbers:
- P/E Ratio: 28.18 â that’s above CBA’s, but supermarkets can warrant higher multiples due to their stable, recurring demand.
- Dividend yield: 3.41% (fully franked), a touch higher than CBA’s, and the dividend per share has shown steady growth since relisting.
- Market Cap: $30.75 billion â much smaller than CBA, but still a top-20 ASX company and a true blue-chip by any measure.
- Earnings per share: 0.812, in line with its sector and size.
Valuation comparison
Here’s how the two stack up on key metrics:
| Metric | Commonwealth Bank | Coles Group |
|---|---|---|
| P/E Ratio | 23.38 | 28.18 |
| Dividend Yield | 3.31% (100% franked) | 3.41% (100% franked) |
| Market Cap | $251.64 billion | $30.75 billion |
| Dividend per Share | $5.05 | $0.74 |
| EPS | 6.517 | 0.812 |
Both companies pay fully franked dividends, nice for after-tax income in retirement. Coles edges out CBA for current yield (3.41% vs 3.31%) but trades at a noticeably higher P/E ratio. Just note, as banking and supermarket stocks belong to very different sectors, their typical P/E ranges don’t always line up apples-for-apples â supermarkets are often seen as more consistent defensive earners.
Recent share price momentum
Comparing recent share price momentum up to 7 October 2026:
- CBA: Closed at $150.37, down 1.32% on the day. Year to date, the return sits at -2.0%, showing modest underperformance in 2026 so far.
- Coles: Closed at $22.88, flat on the day. Year to date, the return is 10.4% â Coles has delivered a solid positive run in 2026 to date.
So if you’re after recent price momentum, Coles has the edge.
Which is the better buy?
If I was making a large investment at 50 and wanted a reliable, lower-volatility cornerstone holding, I’d personally lean toward Commonwealth Bank of Australia. Its size gives it economic moat, its payout history oozes consistency (with strong franking), and its banking model has longer-term pricing power. While its dividend yield is slightly lower than Coles’, the payout per share is much higher and has grown considerably over decades.
Coles is no slouch â I really like the company for its dependable earnings, and its share price has outperformed CBA over the past year. But at a noticeably higher P/E ratio and with much slower historical dividend growth, I see CBA as a more attractive blend of yield, scale, and proven resilience, especially if income and peace of mind are top priorities in the run-up to retirement.
That said, if steady capital growth and lower bank sector exposure appeal more, Coles is by no means a bad alternative. But for a large, set-and-forget holding at age 50, my pick would be Commonwealth Bank.
The post CBA vs Coles shares: Which is the better buy at age 50? appeared first on The Motley Fool Australia.
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More reading
- How many CBA shares do I need to buy for $10,000 of passive income?
- CSL vs CBA: Which ASX share is best for SMSFs?
- How much is needed in superannuation to target a $100,000 annual passive income?
- Wesfarmers vs Coles: Which dividend share is better for retirees?
- If I invest $8,000 in CBA shares, what passive income could I earn in FY27 and FY28?
Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

