You're likely familiar with the outsized share price gains posted by Commonwealth Bank of Australia (ASX: CBA) in recent years, but how about the passive income the bank has delivered?
CBA has long been popular among income investors for its lengthy track record of paying out two fully franked dividends per year, even during the pandemic-affected year of 2020.
Now, following on the strong share price gains, passive income investors buying the S&P/ASX 200 Index (ASX: XJO) bank stock over the past two years will be earning a diminishing dividend yield relative to those who bought shares before the bank's bull run picked up steam.
We'll look at how those dividends have stacked up over the last five years below.
As for those capital gains, CBA shares closed yesterday trading for $172.70 apiece.
This sees shares in Australia's biggest bank, and the biggest stock on the ASX by market cap, up an impressive 147% since market close on 23 October 2020.
As for that added income boost…
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Banking passive income from CBA shares
Near market close on 23 October 2020, you could have picked up CBA shares for $69.90 apiece.
Meaning for $10,000, you could have bought 143 CBA shares, with enough change left over for a can of Coke.
If you'd held tight to those shares ever since, you would then have been eligible to receive the last 10 CBA dividend payments.
According to my trusty calculator, those 10 dividends work out to a total passive income payout of $21.35 per share.
So, the 143 CBA shares you bought five years ago for $10,000 have already delivered $3,053.05 in fully franked dividends.
And remember, at Monday's closing price, those shares are now valued at $24,696.1.
So, if we add that passive income back in, then the accumulated value of the CBA shares you bought five years ago for $10,000 works out to $27,749.15 today.
What's the latest from CommBank stock?
CBA reported its full-year FY 2025 results on 13 August.
Highlights included a 7% year-on-year lift in statutory net profit after tax (NPAT) to $10.13 billion. The ASX 200 bank's cash net profit after tax of $10.25 billion was up 4%.
In line with that profit boost, management lifted the passive income payout by 4%.
CBA paid out the final fully franked FY 2025 dividend of $2.60 per share on 29 September. That brought the full-year dividend payout to $4.85 per share.
