If you’re an income investor, then the Commonwealth Bank of Australia (ASX: CBA) dividend has probably caught your eye over the years.
And with Australia’s largest bank’s shares recently taking an almighty tumble, it may once again be catching eyes.
In light of the recent weakness in the banking sector, let’s take a look to see what analysts are expecting from the CBA dividend in the coming years.
What are analysts forecasting for the CBA dividend in the next few years?
According to a note out of Goldman Sachs, its analysts are expecting the CBA dividend to provide investors with attractive yields through to FY 2024.
In FY 2021, the banking giant rewarded its shareholders with a fully franked $3.50 per share dividend.
Goldman expects this to be increased to $3.75 per share in FY 2022. Based on the current CBA share price of $93.78, this will mean a fully franked 4% yield for investors.
The broker is then forecasting a 20 cents per share increase to $3.95 per share in FY 2023. This equates to a 4.2% yield at today’s share price.
Finally, in FY 2024, Goldman is expecting an even bigger jump from the CBA dividend to a fully franked $4.33 per share. This represents an attractive 4.6% dividend yield for investors.
Is the CBA share price good value?
Unfortunately, the team at Goldman Sachs believe the CBA share price is still overvalued despite its recent pullback.
According to the note, the broker currently has a sell rating and $89.86 price target on its shares. This implies potential downside of 4.2% for its shares over the next 12 months.
Goldman sees more value on offer with other bank shares.