The latest Commonwealth Bank of Australia (ASX: CBA) dividend has just been announced following the release of the bank's FY25 results.
CBA revealed that its pre-provision profit grew 3% to $15.47 billion, and cash net profit increased 4% to $10.25 billion. Its lending profit margin increased slightly, and its loan impairment decreased year over year.
The profit growth allowed CBA to announce it would increase the dividend per share for investors.
Let's take a look at how large the payout will be.
CBA dividend
The ASX bank share is aiming to provide long-term sustainable returns.
Commonwealth Bank's board of directors declared an FY25 final dividend per share of $2.60, representing a 4% year-over-year increase compared to the FY24 second-half dividend. The full-year dividend per share is $4.85, an increase of 4% year over year.
The bank said the full-year dividend payout ratio is 79%, which is at the upper end of its target payout range, reflecting its aim to pay strong and sustainable fully franked dividends.
CBA said it would continue to target a full-year payout ratio of between 70% to 80% of cash net profit.
Investors can utilise the dividend reinvestment plan (DRP) to receive more CBA shares rather than cash, if they'd prefer that.
When will this be paid?
Before the payment date, investors should be aware of the ex-dividend date. That's the date before which investors need to own shares if they want to receive the payout.
For the FY25 final dividend, Commonwealth Bank disclosed that the ex-dividend date is 20 August, which is a week away. That means investors have until the end of trading on Tuesday, 19 August, to secure ownership of CBA shares.
After that, CBA expects to pay the $2.60 dividend per share on 29 September 2025.
If investors want to participate in the DRP, they have until Friday, 22 August, at 5 pm to make that choice.
What is the CBA dividend yield?
At the current CBA share price, the 2025 final dividend alone translates into a fully franked dividend yield of 1.5% and a grossed-up dividend yield of 2.2%, including franking credits.
For the FY25 annual dividend of $4.85 per share, that translates into a fully franked dividend yield of 2.8% and a grossed-up dividend yield of 4%, including franking credits.
That may not be the largest yield around, but it's a little more appealing following the latest RBA cash rate cut.
