Commonwealth Bank of Australia (ASX: CBA) shares enjoyed a strong run higher on Friday.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $166.17 apiece, up 1.12%.
Now, as you may know, CommBank traded at an all-time closing high of $191.40 a share on 25 June this year. Which puts shares in Australia biggest bank down around 13% from its record highs.
Despite that retrace, CBA shares remain up around 8% from their December 31 close.
And patient, long-term investors who bought $10,000 worth of shares in the ASX 200 bank five years ago will still be sitting on some very handsome gains.
How handsome?
Let's dig in.
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CBA shares rewarding long-term investors
Five years ago, on 18 September 2020, CommBank stock closed the day trading for $64.37 a share.
Meaning for $10,000 you could have picked up 155 CBA shares, with enough change left over for a movie ticket.
At Friday's closing price of $166.17, those 155 shares were worth $25,756.35.
Or a gain of $15,756.35 on your initials $10,000 investment.
But wait. There's more!
There's a good reason CBA is a popular stock among passive income investors. Namely the banks twice yearly, fully franked dividend payouts.
If you bought the ASX 200 banks stock five years ago, and held onto it, you'd have received the last 10 dividend payments.
Turning to my trusty calculator (yep, I still use one of those) the past 10 CBA dividend payouts work out to $21.35 a share.
(Note, the final FY 2025 dividend of $2.60 a share won't be paid until 29 September. But as CBA shares traded ex-dividend on 20 August, you'd already be entitled to that payment even if you sold the stock on Monday.)
Now, let's add those $21.35 in dividends back into Friday's closing share price of $166.17.
That brings the accumulated value of those CBA shares you bought five years ago for $64.37 apiece to $187.52.
Meaning those 155 shares you purchased for $10,000 have returned around $29,000 today. That's a gain of more than 190.0%. Plus the potential tax benefits from those dividend franking credits.
And let's not forget that movie ticket. Hope you picked a good!
What's the latest from CommBank?
CBA reported its FY 2025 results on 13 August.
Highlights included a 7% year-on-year increase in the bank's statutory net profit after tax to $10.13 billion. Cash net profit after tax of $10.25 billion was up 4%.
This also saw management boost the final dividend payout by 4%, to $2.60 a share.
With the stock running hot and market expectations high, CBA shares closed down 5.4% on the day the ASX 200 bank reported.
