The Commonwealth Bank of Australia (ASX: CBA) share price appears to have put the recent drama of the Royal Commission behind it on Tuesday.
In afternoon trade the shares of Australia’s largest bank are up a solid 1.3% to $73.60.
This reduces the bank’s 12-month share price decline to just over 17.5%.
Why are its shares higher today?
There doesn’t appear to be a single catalyst for today’s gain. Instead, it looks as though income investors may have decided that CommBank, National Australia Bank Ltd. (ASX: NAB), Australia and New Zealand Banking Group (ASX: ANZ), and the rest of the banks are too attractive to say no to after recent declines.
At present CommBank’s shares provide investors with a trailing fully franked 5.8% dividend, which is significantly higher than the market average of 4% and one of the most generous yields its shares have provided in recent years.
Though investors will be waiting until September for CommBank to next pay out a dividend.
National Australia Bank shares, on the other hand, traditionally go ex-dividend for its interim dividend in the middle of May before eligible shareholders receive the payout roughly six to seven weeks later.
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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. 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.