The Commonwealth Bank of Australia (ASX: CBA) share price has hit a new landmark high.
At the time of writing, shares in Australia's largest bank are trading for $107.31 – up 0.70%. At the open today, shares hit a record high of $109.03.
The positive price movement comes after the company released its full-year earnings results, a full-year, fully franked dividend of $3.50 per share, and a $6 billion off-market share buyback.
Let's take a closer look.
Commonwealth Bank's FY21 results
For the FY21 financial year, Commonwealth Bank declared a net profit of $8.8 billion. That's up 19.7% on the prior corresponding period (pcp). Operating income rose 1.7% on the pcp to $24.2 billion but operating expenses were up 3.3% on the pcp to $11.4 billion.
As a result, the company announced a final dividend of $2.00 per share, fully franked. Added to the interim dividend paid of $1.50 per share, that equates to a full-year dividend of $3.50 per share. At the current CBA share price, this is a 3.24% yield.
In FY20, Commonwealth Bank paid a full-year dividend of $2.98, fully franked – a 4.0% yield at the time.
While today's dividend announcement is a rise on the pcp, it is not a record. In FY19, for example, the company paid a full-year dividend of $4.31, fully franked.
As well, Commonwealth Bank will buy back about $6 billion worth (or 3.5%) of its shares in an off-market purchase.
CBA share price snapshot
Over the past 12 months, the CBA share price has increased 43.4%. Over the same period, the S&P/ASX 200 Index (ASX: XJO) rose 23.7%.
Commonwealth Bank has a market capitalisation of around $190 billion.
