Top broker downgrades the Commonwealth Bank of Australia

Why the big four banks are trading lower today

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Top broker Bell Potter has downgraded the Commonwealth Bank of Australia (ASX: CBA) to hold today and shares in the bank were down 1.16% at the time of writing.

The other big banks Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) were also trading lower as Day 8 of the Banking Royal Commission was underway.

I think the negative sentiment around the banks will continue as the royal commission goes on but not every piece of negative news will have an impact on their bottom line.

Despite the broker downgrade, the big Australian banks remain some of the most profitable banks in the world and I think they are decent additions to a dividend focused portfolio.

While I like the banks, our top dividend pick, could be an even better selection for an income-seeking investor.

Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned. You can follow Kevin on Twitter @KevinGandiya. The Motley Fool Australia owns shares of National Australia Bank Limited. 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 Scott Phillips.

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