One of the biggest drags on the market on Wednesday has been the Commonwealth Bank of Australia (ASX: CBA) share price.
In early afternoon trade the banking giant's shares are down 3% to $71.07.
Why is the CBA share price deep in the red today?
The good news is that there's no reason to panic over this sizeable decline.
The reason is that the vast majority of today's decline can be attributed to the bank's shares going ex-dividend this morning.
This means that its shares no longer have the rights to its upcoming dividend. Generally when a share goes ex-dividend it will fall by the value of the dividend to reflect this.
What now?
Eligible shareholders of CBA, those that were on the share registry at the close of trade on Tuesday, will receive the bank's fully franked interim $2.00 per share dividend in their nominated accounts on March 28.
Unless of course they choose to use the bank's dividend reinvestment plan. Shareholders that use that option will essentially be paid those dividends in new shares on the pay date.
Should you buy CBA's shares?
I'm a big fan of the big four banks at current levels and CBA is no exception.
However, given the value on offer with the rest of the big four, it wouldn't be the first bank share on my buy list.
Based on current valuations, yield, and prospects for FY 2019, I believe that Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) are the best banks to buy at the moment.
And although NAB has a significantly greater dividend than ANZ, I would choose the latter as I believe it is the best placed big four bank to face into the sector's slowing revenue environment.
This is largely due to cost cutting opportunities, low bad debts, and its exposure to a business lending market which is growing at a solid rate.
