The Commonwealth Bank of Australia (ASX: CBA) dividend has been fairly reliable over the years. Regulatory intervention during the COVID-19 pandemic reduced payments temporarily, but things are looking up for income-focused shareholders.
Despite being a consistent earner for Aussie investors, how do distributions from Australia's largest bank stack up against other ASX bank shares?
Image source: Getty Images
How the CBA dividend compares to ASX bank shares
The Aussie bank's shares are currently trading on a 3.49% dividend yield prior to Monday's open. That comes despite a number of different forecasts for what the CBA dividend will be.
Morgan Stanley recently estimated a $4.02 per share dividend in FY22, while Morgans is tipping a $4.28 dividend per share. Both of these figures represent growth over FY21 figures, with the current 3.49% yield translating to a $4 dividend forecast.
So, where does that leave CBA placed against the other big four ASX bank shares?
Australia and New Zealand Banking Group Ltd (ASX: ANZ) has the highest dividend yield among the big four. The ASX bank share is trading at a 3.83% yield prior to Monday's open. That's despite the ANZ share price climbing 19% higher so far this year.
Westpac Banking Corp (ASX: WBC) is the next cab off the rank. Westpac shares are currently trading at a 3.52% dividend yield with a 21.6 price to earnings (P/E) ratio.
CBA's dividend yield does compare favourably to National Australia Bank Ltd (ASX: NAB). NAB shares are trading at a 3.29% dividend yield right now versus 3.49% for Australia's largest bank. That doesn't take into account NAB's $2.5 billion share buyback, which will also return significant capital to investors.
NAB isn't the only one with a share buyback program on offer. CBA is conducting an off-market buyback of up to $6 billion worth of shares to return surplus capital to investors.
Foolish takeaway
The CBA dividend has bounced back after a subdued run in FY20. It's not the highest yield ASX bank share on the market, but it still represents a handy pay day in the current low-interest-rate environment.
