On a day where the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) is rallying, Commonwealth Bank of Australia (ASX:CBA) has again managed to surge past its previous all-time high, maxing out at $85.92.
Indeed, it's been another positive year for the bank's shareholders who have watched their stock outpace the ASX 200's returns, rising by 10.4%. When its $4.01 in franked dividends are also included, the total returns balloon out to more than 17%.
While the bank could outperform again in 2015, investors need to remain cautious. Commonwealth Bank, as well as its big four rivals, are all trading at expensive prices which leave little room for error. Although profits could continue to expand (particularly if the RBA does deliver another rate cut), it's certainly the expensive point of the economic cycle to be buying the stock.
Investors looking for high-yield dividend stocks would be wise to look to some of the other corners of the market, where they can not only find solid dividends, but also the potential for strong capital gains.
