CBA is among the biggest dividend-payers in the world. What's next?

Can the bank continue to rank at the top end of global dividend-payers?

| More on:
Australian dollar $100 notes fall out of the sky, indicaticating a windfall from ASX bank shares

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

Commonwealth Bank of Australia (ASX: CBA) shareholders have been well-rewarded through dividends over the past three decades. The bank can provide significant dividends thanks to its large profits and generous dividend payout ratio.

CBA shares don't exactly offer the biggest dividend yield around. However, one financial institution reckons CBA's total cash pile, which it distributes to shareholders each year, is one of the largest in the world.

The global scale

According to Janus Henderson, global dividends reached a record of $431.1 billion in the third quarter of 2024, up 3.1% year over year. Its dividend report showed that 88% of companies raised their payouts or held them steady. The typical (median) company raised its dividend by 6%.

Janus Henderson reported that banks and media companies (including internet media) contributed the largest share to dividend growth.

In terms of the global dividend outlook, Janus Henderson also expects companies to pay $1.73 trillion in dividends in 2024. This is up 4.2% from the previous year.

How does the bank's payout compare?

For the third quarter of 2024, CBA's dividend was the sixth-largest dividend payment in the world, according to Janus Henderson.

The bank's dividend was higher than those of other huge global payers, such as AppleExxon Mobil, and JPMorgan Chase.

The five companies that eclipsed CBA's dividend were China Construction Bank, China Mobile, PetroChina, Microsoft and Alibaba.

Incredibly, the world's top 20 dividend payers were responsible for a total payout of $84.9 billion.

In this light, CBA shareholders may wonder if the ASX bank share will remain one of the world's biggest dividend payers.

Projections for the CBA dividend

The 2024 calendar year has been great for shareholders, with the CBA share price up a surprising 40%. The chart below shows the incredible rise of Australia's biggest company.

Created with Highcharts 11.4.3Commonwealth Bank Of Australia PriceZoom1M3M6MYTD1Y5Y10YALL31 Dec 202324 Nov 2024Zoom ▾Jan '24Feb '24Mar '24Apr '24May '24Jun '24Jul '24Aug '24Sep '24Oct '24Nov '24Jan '24Jan '24Apr '24Apr '24Jul '24Jul '24Oct '24Oct '24www.fool.com.au

While profit growth may be challenging for the overall banking sector in the short term due to strong competition and rising arrears, CBA may still be able to deliver decent growth.

According to the independent forecast on Commsec, the bank is projected to make earnings per share (EPS) of $6.31 in the 2025 financial year and grow its annual dividend per share by 6.4% to $4.95 per share, which would be a fully franked dividend yield of 3.1%.

In the 2026 financial year, the ASX bank share could see EPS rise again to $6.90. This could fund a 9% increase in the payout to $5.40 per share. That would mean the FY26 annual payment could represent a fully franked dividend per share of 3.3%.

It appears the growing CBA dividend could keep it among the world's biggest dividend payers, assuming other companies don't implement huge dividend hikes.

Should you invest $1,000 in De Grey Mining Limited right now?

Before you buy De Grey Mining Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and De Grey Mining Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

JPMorgan Chase is an advertising partner of Motley Fool Money. 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 positions in and has recommended Apple, JPMorgan Chase, and Microsoft. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Alibaba Group and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Apple and Microsoft. 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 man looking at his laptop and thinking.
Bank Shares

Is it time to buy Westpac shares?

The Westpac share price has taken a hit this week. Are the bank’s shares ripe for a rebound?

Read more »

A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.
Bank Shares

Want to bag the next Westpac shares dividend? Better be quick…

Westpac will pay an interim dividend of 76 cents per share next month.

Read more »

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

After its result, what does Macquarie think Westpac shares are worth?

Let's see what the broker is saying about Australia's oldest bank.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Bank Shares

What could Westpac's results mean for CBA shares?

Westpac recently announced its FY25 half-year result.

Read more »

A woman works on her desktop and tablet, having a win with crypto.
Bank Shares

Should new investors spend their first $5,000 on the big 4 banks?

New to investing? You might be considering one of Australia’s major banks as your first investment. 

Read more »

Woman calculating dividends on calculator and working on a laptop.
Bank Shares

Buying the dip: $10,000 invested in Westpac and CBA shares at April's lows is now worth…

Investors would have done well to follow Warren Buffett’s advice to be greedy on Westpac and CBA shares in early…

Read more »

Lines of codes and graphs in the background with woman looking at laptop trying to understand the data.
Earnings Results

Westpac share price sinks on half-year results miss

Let's see how the big four bank performed during the first half.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Bank Shares

Why does Macquarie think the big 4 ASX bank shares are 'on borrowed time'?

With Australian interest rates likely to fall, the banks face compressed margins in the medium term.

Read more »