Despite a slow start to the day, shares of Commonwealth Bank of Australia (ASX: CBA) have managed to edge 0.9% higher by around 3:00pm AEST. The bank's stock is now trading at $96.50, surpassing yesterday's all-time high price of $95.80.
The shares have been given a fresh burst of energy this week after the US Federal Reserve signalled it will remain in accommodation mode for the near future, easing speculation that it would raise interest rates as soon as June. The decision pushed the Australian dollar higher, increasing the likelihood of a local interest rate cut in the near future.
Despite its lofty share price, investors continue to see value in the bank. While its solid, fully franked dividend yield is playing a key role in attracting investors, Commonwealth Bank's stable earnings stream is also somewhat appealing to many in the market. Notably, Westpac Banking Corp's (ASX: WBC) and Australia and New Zealand Banking Group's (ASX: ANZ) shares have also struck all-time highs today.
Before you buy any of the banks however, you should be aware that they are each facing strong headwinds which could seriously dent their returns in the coming years. As such, you may want to look elsewhere for more appealing sources of fully franked dividends.
