Commonwealth Bank of Australia share price bounces higher

The Commonwealth Bank of Australia (ASX:CBA) share price has jumped $1.94 higher, or 2.45%, to $81.13 as bank stocks rallied hard.

After a torrid May for bank shares — the Commonwealth Bank share price fell 9% during the month — this jump is a welcome relief for its army of investors, including many SMSFs.

While CBA shareholders might be rejoicing today, top fund manager Hyperion cautions there are simply too many risks in the banking sector, with too little growth to compensate for it.

The CBA share price has fallen 1.6% so far in 2017, but is up 7.5% over the past 12 months. With its share price trading at $81.13, Commonwealth Bank shares trade on a fully franked dividend yield of 5.2%.

Motley Fool contributor Rachit Dudhwala recently named Commonwealth Bank as one of his top stock picks for June.

A Big, Fat, Fully Franked Dividend

This company's dividend is almost the stuff of legends. Since it started paying dividends in 2007, it has increased its payout to shareholders every single year, a run that includes 21 consecutive dividend increases.

Based on the last 12-months of dividends, its shares are currently offering a fully-franked 4.8% yield, which grosses up to almost 7% when those franking credits are included. And in stark contrast to the likes of Commonwealth Bank and Telstra, this company just increased its dividend by over 13%, and guided for 2017 profits to grow by 20%!

Discover the name of this "new breed" of blue chip along with 2 others in our new FREE report "The Motley Fool's Top 3 Blue Chips Stocks For 2017."

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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