What happened with the CBA (ASX:CBA) share price this week?

Higher dividends, share buybacks or both? Let's take a look

| More on:
unhappy investor considering computer screen

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Commonwealth Bank of Australia (ASX: CBA) shares have been in the red all day. The CBA share price is down 0.6% in the final hour of trading, at $101.21 per share.

That's 1.3% lower than last Friday when the CBA share price closed at a new record high of $102.52.

Finance levels rising, share buyback expectations

With interest rates still near all-time lows and the Australian economy picking up speed, the bank reported a 21% leap in equipment and machinery financing in May year-on-year.

According to CBA executive general manager, business lending, Clare Morgan:

The construction industry in particular, has benefited from multiple government stimulus packages, including record investments in public infrastructure projects and the Homebuilder grant. We're also seeing strong demand for vehicle financing and machinery, particularly in the food manufacturing and agriculture sectors.

The CBA share price may also be in for a lift if WAM Leaders Ltd (ASX: WLE) portfolio manager Matthew Haupt has it right on expectations for share buybacks.

Haupt is bullish overall on the big banks. He believes they'll start returning a trove of excess capital to investors in the next 3-6 months.

On CBA shares specifically, he expects we'll see an off-market share buyback with "a large franking component… National Australia Bank, I think, will do smaller, bite-sized buybacks over the next few years."

How did the CBA share price move this week?

With no rally in the final moments today, the CBA share price has closed lower on 4 of the 5 trading days this week. Thursday, 10 June, was the only day the bank's shares gained, closing the day up 0.76%.

Still, the CBA share price is only a touch off its all-time highs. It remains up more than 50% over the past 12 months, far outpacing the 23% gains posted by the S&P/ASX 200 Index (ASX: XJO) over that same time.

Should you invest $1,000 in Commonwealth Bank Of Australia right now?

Before you buy Commonwealth Bank Of Australia shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Commonwealth Bank Of Australia wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Bank Shares

Woman calculating dividends on calculator and working on a laptop.
Bank Shares

Buying the dip: $10,000 invested in Westpac and CBA shares at April's lows is now worth…

Investors would have done well to follow Warren Buffett’s advice to be greedy on Westpac and CBA shares in early…

Read more »

Lines of codes and graphs in the background with woman looking at laptop trying to understand the data.
Earnings Results

Westpac share price sinks on half-year results miss

Let's see how the big four bank performed during the first half.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Bank Shares

Why does Macquarie think the big 4 ASX bank shares are 'on borrowed time'?

With Australian interest rates likely to fall, the banks face compressed margins in the medium term.

Read more »

Bank building in a financial district.
Bank Shares

What happened with the big four ASX 200 bank stocks in April?

CBA led the charge among the ASX 200 bank stocks in April. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Bank Shares

Why did CBA shares jump over 10% in April?

It was a great month for owners of this banking giant's shares.

Read more »

Happy young woman saving money in a piggy bank.
Bank Shares

Which big 4 ASX bank share does Macquarie currently prefer?

Here’s why Macquarie likes this bank the most.

Read more »

Bank building with word Bank on it.
Bank Shares

ASX bank shares outperformed in April. Will this continue according to Macquarie?

What drove the strong performance by banks in April?

Read more »

a couple and their baby sit together at their computer carrying out digital transactions and smiling happily.
Bank Shares

3 things about BOQ stock every smart investor knows

This smaller bank has aspirations to become a larger competitor.

Read more »