Invested $8,000 in CBA shares in 2021? Here's how much passive income you've already earned

The passive income delivered by CBA shares has been on the rise over the past three years.

| More on:
A happy elderly woman smiles and cheers as she looks at good investment news on her laptop.

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

In the first weeks of January 2021, passive income investors could have picked up Commonwealth Bank of Australia (ASX: CBA) shares for anywhere from $83 to $85 apiece.

Taking the mid-range here, we'll assume you opted to buy at $84 a share.

That means with your $8,000 investment, you could have snapped up 95 shares in the S&P/ASX 200 Index (ASX: XJO) bank stock, with enough change left over for a takeout pizza.

With the goal of securing a reliable extra passive income stream in mind, you were likely drawn to CommBank's long history of paying two fully franked dividends per year.

As we'll look at in a tick, CBA shares didn't disappoint on this front over the past three years.

But as you can see on the chart below, Australia's biggest bank also posted some significant share price gains during this time.

Created with Highcharts 11.4.3Commonwealth Bank Of Australia PriceZoom1M3M6MYTD1Y5Y10YALL1 Jan 202131 Jul 2025Zoom ▾Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '25Jul '252021202120222022202320232024202420252025www.fool.com.au

Indeed, on Friday, the ASX 200 bank stock ended the day trading for $136.80 a share.

That means, from capital gains alone, your $8,000 investment for 95 shares in early 2021 would now be worth $12,996.

Now, let's have a look at that passive income.

Tapping CBA shares for passive income

If you'd bought your 95 CBA shares in January 2021, you'd have been eligible to receive the past eight, fully franked dividend payouts.

To be precise, you'd already have received seven dividend payouts. The all-time high FY 2024 final dividend of $2.50 per share will be paid on 27 September. CBA stock traded ex-dividend earlier this week, on 21 August.

According to my trusty calculator, you'll then have received a total of $16.50 per share in dividends over three years. Or $1,567.50 in passive income

Adding those dividends back into Friday's closing share price, the accumulated value of the CBA shares you bought in 2021 now stands at $153.30 a share.

Meaning your 95 shares purchased for $8,000 in 2021 are now worth an accumulated $14,563.50. Or a very tidy gain of 82%, plus potential tax benefits from those franking credits.

What's the latest from CommBank?

The record amount of passive income per share paid out with the final FY 2024 CBA dividend came after the big four bank achieved full-year operating income of $27.17 billion, in line with FY 2023.

And cash net profit after tax of $9.84 billion held up well in the face of rising costs, down 2% year on year.

Commenting on those results, including the boost in passive income, CBA CEO Matt Comyn said, "Our results demonstrate our continued focus on supporting our customers, our disciplined operational and strategic execution, and the strength of our balance sheet."

Motley Fool contributor Bernd Struben 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Two people lazing in deck chairs on a beautiful sandy beach throw their hands up in the air.
Dividend Investing

Why Macquarie expects this high-yielding ASX 200 dividend stock to outperform

Let's find out.

Read more »

Australian notes and coins symbolising dividends.
Dividend Investing

Why did the Rio Tinto dividend just shrink to 7-year lows?

Rio Tinto just slashed its half-year dividend payout. But why?

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

These top ASX dividend shares offer 5%+ yields

Analysts think income investors should be buying these shares.

Read more »

A piggy bank is surround by hands preparing to pay coins into the slot, representing a company capital raisingh in asx share price represented by multiple hands all placing coins in a piggy bank
Dividend Investing

3 Australian dividend stocks trading at bargain prices

These ASX dividend shares look far too cheap to me.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
Dividend Investing

Invest $5,000 into these ASX dividend stocks in August

Here's what analysts are recommending as buys right now.

Read more »

Young professional person providing advise to older couple.
Investing Strategies

Why franking credits are a powerful bonus for ASX investors

With super tax changes on the horizon, here’s why franking credits matter more than ever.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
Dividend Investing

Buy these ASX dividend shares for passive income

Let's see what analysts are recommending to their clients right now.

Read more »

Business meeting to discuss buy now pay later platform
Dividend Investing

Forget term deposits! I'd buy these two ASX 200 shares instead

I think term deposits have a weak outlook.

Read more »