Like all ASX 200 bank shares, Commonwealth Bank of Australia (ASX: CBA) is a beloved share for its dividends. For decades, income investors, retirees, and many other seekers of passive income have turned to CBA shares.
Last week's half-year results from Commonwealth Bank will probably do little to change this reputation.
As we covered at the time, CBA told investors that its cash net profit has risen by 9% to $5.15 billion over the six months to 31 December 2022. Operating income also rose 12% to $13.59 billion. This enabled the bank to supersize its first dividend of 2023.
Last year, CBA shares paid out an interim dividend of $1.75 per share. That in itself was a nice increase over 2021's interim dividend of $1.50 per share.
But last week, the bank announced that it would be jacking up its interim dividend again. Investors are set to receive $2.10 per share, fully franked, from the ASX bank share.
So if investors wish to bag CommBank's largest-ever interim dividend, what do they need to do?
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The latest CBA dividend is incoming
Well, be quick for one. This latest Commonwealth Bank dividend is set to be paid out on 30 March next month. But the CBA share price is scheduled to trade ex-dividend on 22 February. That's this Wednesday.
When a company trades ex-dividend, it seals off a dividend payment to new investors. That means that anyone who buys CBA shares on or after this Wednesday will not be eligible to receive this latest interim dividend.
So to reflect this, we should all expect CBA shares to fall in value during Wednesday's session this week, as is normal when an ASX income share goes ex-dividend:
Therefore, if an investor is desperate to lock this dividend payment in, they have until the end of tomorrow's trading session to get their hands on some CBA shares. Otherwise, investors will have to wait until the bank's next dividend (probably due in September) to get a paycheque.
When this latest interim dividend does arrive, it will give CBA shares a trailing full-year dividend of $4.20 per share, fully franked.
At the current CBA share price of $101.54 (at the time of writing), this gives the ASX 200 bank a forward dividend yield of 4.14%, or 5.91% grossed-up with Commonwealth Bank's full franking credits.
