You need to act fast if you want to receive the next CBA dividend

It's almost payday for the banking giant's shareholders.

| More on:
Woman holding $50 and $20 notes.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're wanting to receive the next Commonwealth Bank of Australia (ASX: CBA) dividend, then you will have to get a wriggle on.

That's because the banking giant's shares will soon be going ex-dividend for its interim payout.

When a share goes ex-dividend, it means the rights to the forthcoming payment are settled.

So, even if you were to buy CBA shares on that date, the dividend wouldn't end up in your bank account. Instead, it would go to the seller of its shares, even though they no longer own them.

The CBA dividend

Last week, CBA released its half-year results and reported a 0.2% lift in operating income to $13,649 million and a 3% decline in cash net profit after tax to $5,019 million. The latter was driven by a combination of margin compression and higher operating expenses.

However, despite the falling profits, the CBA board elected to increase its interim dividend.

It declared a fully franked interim dividend of $2.15 per share, which was a 2.4% increase on last year's payout.

This lifted its payout ratio to 72% from 68% a year earlier. The bank notes that this gives a good portion of Australia a nice income boost. It commented:

We have increased our dividend payout ratio, improving shareholder returns and benefitting more than 12 million Australians who own CBA shares either directly or through their superannuation holdings.

Ex-dividend date approaches

CBA shares will go ex-dividend for this payout on Wednesday 21 February.

This means that you need to own its shares before the close of play on Tuesday if you want to receive it.

As things stand, CBA intends to make its payment in a little over a month on Thursday 28 March, just before the Good Friday public holiday.

Motley Fool contributor James Mickleboro 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.

More on Bank Shares

Three colleagues stare at a computer screen with serious looks on their faces.
Bank Shares

Westpac shares charges higher despite $164m profit hit

What's impacting the bank's profits in FY 2024?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Bank Shares

Are ANZ shares a top buy for dividend income?

Can we bank on ANZ shares for passive income payments?

Read more »

Accountant woman counting an Australian money and using calculator for calculating dividend yield.
Bank Shares

How much do you need to invest in NAB shares for $12,000 in annual dividends?

Enjoying $12,000 in annual dividend income is no easy feat...

Read more »

A man thinks very carefully about his money and investments.
Bank Shares

Is the CBA share price heading for a fall?

Experts are still saying CBA shares are a sell.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Bank Shares

Sell Bank of Queensland shares before they crash

Now is not the time to buy this bank's shares according to a leading broker.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Bank Shares

Westpac stock: Should you buy the 5.5% yield?

Is Westpac an easy buy today for that 5.5% yield?

Read more »

Delighted adult man, working on a company slogan, on his laptop.
Earnings Results

Bank of Queensland share price leaps 6% on improving outlook

ASX 200 investors are bidding up the Bank of Queensland share price on Wednesday.

Read more »

A man in his 30s with a clipped beard sits at his laptop on a desk with one finger to the side of his face and his chin resting on his thumb as he looks concerned while staring at his computer screen.
Bank Shares

ASX expert: Time to sell NAB shares

The calls that NAB shares are overvalued are growing louder...

Read more »