The Commonwealth Bank of Australia (ASX:CBA) share price has jumped $1.94 higher, or 2.45%, to $81.13 as bank stocks rallied hard.
After a torrid May for bank shares — the Commonwealth Bank share price fell 9% during the month — this jump is a welcome relief for its army of investors, including many SMSFs.
While CBA shareholders might be rejoicing today, top fund manager Hyperion cautions there are simply too many risks in the banking sector, with too little growth to compensate for it.
The CBA share price has fallen 1.6% so far in 2017, but is up 7.5% over the past 12 months. With its share price trading at $81.13, Commonwealth Bank shares trade on a fully franked dividend yield of 5.2%.
Motley Fool contributor Rachit Dudhwala recently named Commonwealth Bank as one of his top stock picks for June.
