Commonwealth Bank of Australia (ASX: CBA) shares have hit a wall today, putting an end to their magnificent run experienced over the last month.
After having risen nearly 13% since their October trough to reach as high as $83.00 flat yesterday, they have today dropped $1.07, or 1.3%, to be trading at just $81.93. The fall comes after Commonwealth Bank held its annual general meeting, where the bank said it was "cautiously optimistic" for the year ahead, predicting further growth in consumer spending and borrowing with interest rates tipped to remain low.
Indeed, it just recently provided an update for its first quarter operations which revealed a record $2.3 billion cash profit, putting it on track to smash its $8.8 billion profit from FY14.
However, growing concerns regarding tougher capital restrictions could pose a huge threat to the bank's earnings going forward. Westpac Banking Corp's (ASX: WBC) CEO Gail Kelly has already warned that tougher requirements could impact the banks' ability to maintain dividends. Furthermore, Australia and New Zealand Banking Group's (ASX: ANZ) boss Mike Smith has said interest rates on all loans would have to rise by half a per cent should the tougher restrictions be imposed.
Commonwealth Bank isn't the only bank to have fallen today. Westpac, ANZ and National Australia Bank Ltd. (ASX: NAB) are all down roughly 1% after it was revealed that each have quietly cut their term deposit rates in recent months, stinging investors even further.
With investors actually losing money from holding their cash in term deposits (when tax and inflation are taken into account), it's clear that high-yield dividend stocks are the best way to make a profit.
