Commonwealth Bank’s (ASX: CBA) stellar profits are tipped to inspire the board to increase its payout to investors by an extra 30 cents. After substantially increasing its first half dividend to $1.64, analysts believe the full year dividend to June will come to around $3.64, compared to $3.34 this time last year.
With Commbank’s profit expected to reach a new record high of approximately $7.6 billion, shareholders are demanding more. ANZ (ASX: ANZ) has also put pressure on Australia’s biggest lender to cough up since upping its interim dividend by around 11% earlier this year.
The big four banks dividends are creating great yield plays for investors and lower prices pose a great opportunity for those looking to secure a stable long-term income.
However, Commbank is trading at much higher earnings ratio than its top four counterparts, which could mean that the markets expectations are weighing in on the stock. Compared to its peers, it currently has less growth in the near future and less dividend yield.
In the market for high-yielding ASX shares? Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!
- 10 stocks to hold forever
- Westpac announces years of volatility
- Should you buy ANZ?
- 3 bargain blue chips
Motley Fool contributor Owen Raszkiewicz owns shares in ANZ.
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off it's high, all while offering a fully franked dividend yield over 3%...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.