Bought CBA shares in June? Here's the dividend yield you're earning now

CBA shares have delivered a full-year dividend payout of $4.20 per share, 100% franked.

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Key points
  • CBA shares have a long track record of paying two fully franked dividends each year
  • The ASX 200 bank trades on a trailing yield of 4.2%
  • Investors who bought the dip in June will be earning a yield of 4.8%

Commonwealth Bank of Australia (ASX: CBA) shares are lagging the benchmark over the past 12 months.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock are up 1% today but remain down just over 2% since this time last year.

The ASX 200 itself is just about flat over the full year.

Of course, we're not factoring in the fully franked dividends delivered by CBA shares yet.

Passive income investors have long looked to CBA for the bank's reliable, twice-yearly dividend payments.

Over the past 12 months, CBA paid out a final dividend of $2.10 per share on 29 September. The interim dividend, also $2.10 per share, will have hit investors' bank accounts on 30 March.

That comes out to a total full-year payout of $4.20 per share.

At the current CBA share price of $100.40, that equates to a trailing yield of 4.2%. Or $42 a year in passive income from a $1,000 investment.

With the franking credits factored in, that's a solid second income stream from the big four bank.

Yet not all ASX 200 investors will be earning that same yield.

Some investors will be earning a bit less, while others will be earning a fair bit more.

A woman wearing yellow smiles and drinks coffee while on laptop.

Image source: Getty Images

Bought CBA shares in June?

The broader market downturn last June represented an excellent buying opportunity for many ASX 200 stocks.

CBA shares were no exception.

On 17 June, CommBank closed the day trading for $87.26 per share.

Investors who snapped up some shares on the day will obviously be sitting on some excellent share price gains today. Just over 15%, to be precise.

Atop that, lucky or well-advised investors who bought CBA shares on 17 June will also be earning significantly more yield from the stock.

If you'd bought shares at the end of that day, you'd be earning a fully franked yield of 4.8%.

That's an extra 0.6% yield to build your passive income from CBA shares every year.

Forever.

Or until you decide to sell your holdings.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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