The Commonwealth Bank of Australia (ASX: CBA) share price has been a strong performer in February.
Since the start of the month the banking giant's shares have climbed a solid 5%.
Why is the Commonwealth Bank share price up 5% in February?
The catalyst for this solid share price gain has of course been its better than expected half year update.
For the six months ended December 31, Australia's largest bank delivered cash earnings of $4,477 million. Although this was a 4.3% decline on the prior corresponding period, it came in higher than the market was expecting. The consensus estimate was for cash earnings of $4,405 million for the half.
It wasn't just that which caught the eye of investors. The bank impressed with its cash return on equity of 12.7%, a common equity Tier 1 (CET1) capital ratio of 11.7%, and a group net interest margin (NIM) of 2.11%.
And although its loan impairment expense was up 2 basis points to 17 basis points of average GLAA, this was due to drought and bushfire provisions. Taking them out of the equation would have seen its loan impairment expense fall 1 basis point.
This ultimately allowed the bank to declare a 200 cents per share fully franked interim dividend. This was flat on the prior corresponding period.
How do you receive this dividend?
If you're a Commonwealth Bank shareholder then you'll be paid this dividend at the end of next month on March 31.
But if you're not currently a shareholder, then you'll have to act fact to be eligible for this generous payout.
Commonwealth Bank's shares are due to trade ex-dividend on Wednesday February 19. This means that you'll need to buy shares before the market close today (February 18), in order to qualify.
Australia's largest bank isn't the only company trading ex-dividend tomorrow. Both investment company Navigator Global Investments Ltd (ASX: NGI) and insurance giant Suncorp Group Ltd (ASX: SUN) are due to go ex-dividend on Wednesday as well.
