Commonwealth Bank of Australia (ASX: CBA) shares may be among the most popular dividend options due to the company's perceived stability and dividend yield.
But, the ASX bank share doesn't usually have as high a dividend yield as its major bank peers, National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ). But it has a better track record of dividend stability and growth over the last 15 years.
The bank has been growing its payout since the COVID-19 pandemic headwinds in 2020, and the recent FY26 half-year result was another example of the bank's ability to regularly grow earnings and dividends.
In HY26, CBA decided to hike its interim dividend per share by 4% to $2.35 following a 6% rise in the cash net profit after tax (NPAT) to $5.4 billion.
But, in this article, we're not thinking about FY26 payments; we're looking at the annual FY27 dividend, which will be paid in 2027.
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2027 dividend projection for owners of CBA shares
According to the projection on CMC Invest, the ASX bank share is projected to pay an annual dividend per share of $5.25 in the 2027 financial year.
At the time of writing, this forecast translates into a dividend yield of 2.9% excluding franking credits and a grossed-up dividend yield of 4.1% including franking credits.
If someone were to invest $8,000 in Commonwealth Bank, they would be able to buy 43 CBA shares (with a little bit of money left over).
With those 43 CBA shares, investors could receive $225.75 of cash and $322.50 overall, including the franking credits.
Is this a good time to invest in Commonwealth Bank?
According to CMC Invest, there have been nine analyst ratings calls on the business in the last three months.
Of those nine, all of them have been a sell rating. So, the investment professionals are very negative on the appeal of the company's valuation right now.
The average price target of those nine ratings is $125.17. That means, collectively, those analysts are predicting the CBA share price could fall by around 30% within the next year. In January, Commonwealth Bank's share price fell to below $150, but it has since jumped higher on a strong FY26 half-year result and a higher prospect of interest rate rises amid stronger inflation.
For now, there seem to be better ASX shares out there that we can buy.
