Here's Some Good News If You Have Commonwealth Bank Shares

Analysts think Commonwealth Bank is going to pay a bumper second-half dividend when it reveals full-year results in August.

Photo: Getty/Laurence Griffiths

“CBA’s peers have all lifted their payout ratios in recent periods, which we believe will prompt CBA to follow suit,” Deutsche Bank analyst James Freeman said in a note reported by the AFR.

CBA is predicted to reveal a profit somewhere in the range of $7.6 billion. Freeman is predicting it will pay a half-year dividend of $2 per share. That would take the full-year pay-out rate to $3.64.

Goldman Sachs analyst Andrew Lyons is predicting it will be even bigger at $2.12, and that the bank could still pay a sizeable divided despite an increase in bad debt charges.

“We estimate CBA’s bad debt charge could be nearly one-third higher than our current forecast over the next five years and yet still maintain our dividend per share forecasts,” he said, according to the Australian Financial Review.

CBA paid a first-half dividend of $1.64. Traditionally it gives shareholders a bigger payment in the second half.

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