How big will the CBA dividend be in 2022?

CBA is expected to grow its dividend in 2022. But how much bigger will it be?

| More on:
Man holding different Australian dollar notes.

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

Key points

  • CBA is one of the largest dividend payers on the ASX
  • It’s expected to keep growing the dividend between FY22 to FY24
  • Experts project a grossed-up dividend yield of around 5.2% this financial year

Commonwealth Bank of Australia (ASX: CBA) is among Australia's biggest dividend payers.

It is one of the big four domestic ASX banks in Australia, alongside National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

In FY21, Commbank paid an annual dividend of $3.50 per share. That was an increase of 17% compared to FY20.

So, how big will the dividend from CBA be in FY22?

What we already know about the CBA dividend

More than half of the bank's 2022 financial year has already occurred.

In February 2022, the business announced an interim dividend of $1.75 per share. That represents a 17% increase on the FY21 half-year dividend.

The interim dividend represented a 'normalised' cash payout ratio of around 70%, which was in line with the board's interim target dividend payout ratio, normalised for long run loan loss rates.

In the first half of FY21, the bank saw "strong financial and operational performance delivered in a low rate environment through continued customer focus, disciplined execution and investment."

CBA's cash net profit after tax (NPAT) rose by 23% to $4.75 billion, supported by reduced remediation costs and lower loan loss provisions due to an improved economic outlook. However, it was impacted by lower margins.

The net interest margin (NIM) dropped to 1.92%, which was down 17 basis points compared to the second half of FY21. CBA blamed some of the decline on customers switching to lower margin fixed home loans, the impact of rising swap rates due to market expectations of higher interest rates, and continued pressure from home loan competition.

Expectations for FY22

Commsec currently has a dividend forecast of $3.85 per share for FY22. That estimate is from external data providers, the projection hasn't come from Commonwealth Bank.

If CBA were to pay an annual dividend of $3.85, that would translate into a grossed-up dividend yield of around 5.25%.

But Commsec isn't the only place that provides dividend estimates.

Morgan Stanley thinks the FY22 dividend that CBA pays will be equivalent to a grossed-up dividend yield of 5.2%.

UBS has one of the lowest dividend projections for CBA in FY22, with an estimated grossed-up dividend yield of 4.8%.

Looking further ahead

CBA is expected to pay dividends beyond FY22, of course. What could dividends beyond the 2022 financial year look like?

The big four ASX bank is expected to keep growing its dividend in FY23 and FY24.

Using Commsec's projections, CBA is predicted to pay an annual dividend per share of $4.03 in FY23 and $4.25 in FY24. This would see the bank almost return to the level of dividends it paid in FY18 and FY19.

The FY23 and FY24 projected dividends translate into grossed-up dividend yields of 5.5% and 5.8%, respectively.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 3 April 2025

Motley Fool contributor Tristan Harrison 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 recommended Westpac Banking Corporation. 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 and man calculating a dividend yield.
Bank Shares

2 ASX 200 bank stocks to sell today: Bell Potter

Bell Potter forecasts more headwinds in 2025 for these two ASX 200 banks.

Read more »

Two boys lie in the grass arm wrestling.
Share Market News

Regional bank battle:Bendigo Bank or Bank of Queensland shares?

Looking outside the big four? These two regional banks might be worth considering

Read more »

A man watches the share price movement closely.
Bank Shares

I want to buy CBA shares. What price should I pay?

What would be a good valuation to buy CBA at?

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Bank Shares

ANZ shares: Buy, sell, hold?

With the ANZ share price in retreat, the bank stock’s dividend yield is now at 6.2%.

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Bank Shares

Is the CBA share price a buy amid the global tariff sell-off?

Are CBA shares now a bargain after some volatility?

Read more »

Happy young couple saving money in piggy bank.
Bank Shares

$10,000 invested in ANZ shares 5 years ago is now worth…

Was it a smart move? Let's run the numbers.

Read more »

Frustrated and shocked business woman reading bad news online from phone.
Bank Shares

ANZ share price sinks on APRA bombshell

Let's see what the big four bank has announced this morning.

Read more »

three businessmen stand in silhouette against a window of an office with papers displaying graphs and office documents on a desk in the foreground.
Bank Shares

Westpac shares marching higher amid latest executive shakeup

With today’s announcement, Westpac continues to reshape its top level leadership.

Read more »