How does the CBA dividend compare with other ASX 200 banks right now?

Find out whether CBA holds the mantle as the top yielding dividend pick among ASX 200 bank shares.

| More on:
Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.

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

For many years, the Commonwealth Bank of Australia (ASX: CBA) dividend has boosted the wealth of millions of Aussies as one of the most popular shares held among individuals and super funds. But does it still make sense for those on the hunt for the best income?

At the final bell on Wednesday, shares in Australia's largest retail bank finished 0.4% lower at $101.70. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) fell a deeper 0.74% during a rough day for materials.

Based on the closing price, CBA shares now trade on a trailing dividend yield of 4.3%. For context, the dividend yield of the ASX 200 benchmark is calculated to be 4.1%. So, already, shareholders know the CBA dividend is generating a higher return than the broader index.

However, is it competitive against other ASX 200 bank shares?

Which ASX 200 bank pays the most?

I've compiled a list of all the ASX-listed banks that are included in the ASX 200 index. It turns out there are only ten bank shares among the top 200 listed companies. It is a small collection considering the sector's enormous composition in the benchmark based on market capitalisation.

A quick inspection of the table below shows CBA does not currently offer the highest dividend yield. As a matter of fact, we must work our way down to the eighth spot on the list to find the gold-emblazoned bank.

ASX-listed bankShare priceDividend yieldPayout ratio
Bank of Queensland Ltd (ASX: BOQ)$5.777.6%132%
Bendigo and Adelaide Bank Ltd (ASX: BEN)$9.106.6%69%
Virgin Money UK (ASX: VUK)$3.136.2%36%
Westpac Banking Corp (ASX: WBC)$21.526.2%73%
ANZ Group Holdings Ltd (ASX: ANZ)$25.386.1%63%
National Australia Bank Ltd (ASX: NAB)$28.985.5%68%
Suncorp Group Ltd (ASX: SUN)$13.764.4%66%
Commonwealth Bank of Australia (ASX: CBA)$101.624.3%75%
Macquarie Group Ltd (ASX: MQG)$171.934.2%55%
AMP Ltd (ASX: AMP)$1.283.9%-333%
Data as of 3pm AEST 13 September 2023

The top spot, instead, goes to the Bank of Queensland — touting a gargantuan dividend yield of 7.6%.

However, with a payout ratio of 132%, it appears the Brisbane headquartered bank paid out more than it earned in the last year. This means future payments of a similar size may be in jeopardy in the future unless the bank can increase its earnings.

Interestingly, all of the other Big Four peers outcompeted CBA on dividend yield. The highest being Westpac, with a yield of 6.2%. Moreover, they are all carrying lower payout ratios than big yellow.

Is the CBA dividend yielding more than it did in the past?

For the diehard CBA shareholders, comparing the banking giant to itself might be more helpful.

At its current 4.3%, the Commonwealth Bank is offering its poorest yield in more than 18 years (excluding COVID). The last time the CBA dividend was even close to this low yield was in 2007, when the world was in the grips of the global financial crisis.

Yet, the bank is paying the most in annual dividends per share in its history.

How does that stack up?

Essentially, the CBA share price has outrun its dividend growth, compressing its yield.

Created with Highcharts 11.4.3Commonwealth Bank Of Australia PriceZoom1M3M6MYTD1Y5Y10YALL12 Sep 201813 Sep 2023Zoom ▾Jan '19Jul '19Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '232019201920202020202120212022202220232023www.fool.com.au

As of right now, CBA shares trade on a price-to-earnings (P/E) ratio that has only been witnessed briefly in 2021, 2019, 2010, and 2007.

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 30 April 2025

Motley Fool contributor Mitchell Lawler has positions in Commonwealth Bank Of Australia and Macquarie Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Bank Shares

A woman in a bright yellow jumper looks happily at her yellow piggy bank.
Bank Shares

$5,000 invested in CBA shares one year ago is now worth…

CBA shares have continued to defy bearish analysts and charged higher.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Bank Shares

Why CBA shares could crash 40%+

Brokers are calling time on this banking giant's incredible run.

Read more »

Bank building with the word bank in gold.
Bank Shares

Guess which ASX 200 bank stock is down 4% after posting a quarterly profit decline

Let's see how this bank performed during the third quarter.

Read more »

Hologram of a man next to a human robot, symbolising artificial intelligence.
Bank Shares

How artificial intelligence could transform the banking industry

ANZ describes the move as “the single-biggest change program” the bank will undertake over the next few years.

Read more »

A man in a business shirt and tie takes a wide leap over a large steel trap with jagged teeth.
Bank Shares

5.75% yield: Are ANZ shares a dividend trap?

ANZ's dividend currently beats out its own term deposits.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Bank Shares

Here's the earnings forecast out to 2029 for CBA shares

How much earnings could CBA generate in the coming years?

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

CBA shares hit a new $176 record high. Too late to buy?

What can stop this bank now?

Read more »

man thinking about whether to invest in bitcoin
Bank Shares

Is this the right time to invest in Westpac shares after the interest rate cut?

Should investors bank on rate cuts helping Westpac?

Read more »