For a long time, Commonwealth has been seen as the “King” of the Big 4 Banks in Australia. CBA certainly has a proud history of delivering record profits and paying their shareholders an attractive dividend. Their share price growth in recent years has been impressive and has far outpaced their peers. However, if you’re an investor that’s focused on receiving dividends, an interesting question to consider is: Are the CBA dividends currently the best on offer when compared to the other Big Banks?
In the example shown below, we have assumed that an investor either owns 1000 CBA shares, or a similar amount of funds invested across the other 3 Big Banks. While the 1000 CBA shares delivers an impressive $3,750 in dividends per year – if you held a similar amount of funds across the other Big Banks – you would receive a total of $5,380.62 in dividends over the 12 months. That’s $ 1,630.62 more dividends from holding the other 3 Big Banks.
Note: The dividends are based on what these companies have paid over the previous 12 months. Dividends can and do change over time.
If you are holding shares in the Commonwealth Bank, over the last 12 months they have gone from a low of $81.56 – to their current levels of around $93.44*. You might like to consider locking in some profits on your CBA shares, and switching into a combination of the other 3 Big Banks to improve the dividends received by your portfolio.
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