Well, one of the flagship events of ASX earnings season is upon us today – the earnings report of Commonwealth Bank of Australia (ASX: CBA) and the revelation of this ASX 200 bank stock's latest dividend.
This morning, CBA revealed its numbers covering the 2024 financial year.
As we went through at the time, CBA delighted investors with its better-than-expected results for the 12 months to 30 June 2024 in what has been a tough year for banks.
The bank revealed that its operating income for FY2024 was $27.17 billion, flat compared to the prior year. Operating expenses rose by 3% to $12.22 billion, which helped depress pre-provisioning profits by 2% to $14.96 billion.
Cash net profits after tax (NPAT) were also down 2% to $9.84 billion, not assisted by an 8 basis point reduction in the bank's net interest margin to 1.99%.
But let's talk about the latest CBA dividend.
Perhaps the highlight of today's earnings reveal was CBA's announcement of a final dividend of $2.50 per share for the 2024 financial year. That dividend will, of course, come with full franking credits attached.
Image source: Getty Images
CBA funds record dividend payment
This $2.50 shareholder payout is notable for a few reasons. Firstly, it is a healthy 4.17% rise over last year's final dividend of $2.40 per share. It is also a 16.28% rise over the interim dividend of $2.15 per share that investors received back in March.
This payment brings CBA's total dividend for the 2024 financial year to $4.65 per share, again a pleasing increase over the $4.50 paid out in FY2023.
But it's also worth noting that this latest final dividend is the largest single shareholder payout that CBA has ever given. In fact, Commonwealth Bank's FY2024 total of $4.65 is also the highest income the bank has provided over a 12-month period in its long history.
So a few dividend records have fallen for CBA today. No doubt this will please shareholders.
But let's go through the details of this latest dividend.
CBA will pay this dividend on 29 September. However, its ex-dividend date has been set for next Wednesday, 21 August. That means investors who don't yet own CBA shares but might want to bag this payout will need to own shares as of the market close on 20 August.
Those investors who do qualify for payment have until 23 August to opt into CBA's voluntary dividend reinvestment plan (DRP) if they wish to receive additional CBA shares in lieu of a cash payment.
Today, CBA shares are up 0.9% to $133.72 each at the time of writing. At this share price, this ASX 200 bank stock has a trailing dividend yield of 3.4% but a forward dividend yield of 3.48% if we factor in today's newly announced payout.
