Commonwealth Bank of Australia (ASX: CBA) shares have been a standout ASX blue-chip investment over the past decade.
That does not mean the journey has always been smooth. Bank shares can still be affected by interest rates, bad debts, housing market conditions, regulation, and investor sentiment.
But for patient investors, CBA has delivered a powerful combination of capital growth and fully franked dividends.
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CBA shares deliver
Back in May 2016, CBA shares were trading around $70.20. That means a $10,000 investment a decade ago would have been enough to buy 142 shares.
On Thursday, the CBA share price ended the day at $164.13. This means those shares would now be worth approximately $23,447.
That is a strong result already. But with CBA, there is more than just capital gains.
It is of course one of Australia's biggest dividend payers.
The dividends add a lot
Since May 2016, CBA has paid a long list of dividends to shareholders.
During this time, the bank has paid a total of $41.81 per share in dividends from the final FY16 dividend through to the most recent interim dividend for FY26.
For an investor with 142 shares, those cash dividends would add up to approximately $5,973.
That excludes the value of franking credits. It also assumes the investor took the dividends in cash rather than reinvesting them into more shares.
When those dividends are added to the current share value, the original $10,000 investment would now be worth about $29,420.
That is close to tripling the original investment before franking credits and without dividend reinvestment.
Why CBA has done so well
I think CBA's performance comes down to quality.
The bank has one of the strongest franchises on the ASX. It has a huge customer base, a powerful deposit position, leading digital capabilities, and a brand that many Australians know well.
Those traits have helped it earn a premium valuation compared with the other major banks.
Some investors may see that premium as a reason to avoid the stock. I understand that view. CBA is rarely (if ever) the cheapest bank on the market.
But I think quality deserves a premium, particularly in an uncertain economic environment.
CBA's earnings are not immune from pressure. Higher cost-of-living pressures, mortgage stress, and competition can all have an impact. But the bank's strong market position, customer relationships, and balance sheet strength give it advantages that I think are worth paying up for.
Could CBA shares still be a buy?
After rising so strongly, I do not think investors should expect the next decade to look exactly like the last one.
A move from $70.00 to $164.13, plus large fully franked dividends, is a high bar to repeat.
However, I still think CBA shares can play an important role in a long-term portfolio. They offer quality, income, franking credits, and exposure to one of Australia's most profitable banking franchises.
For investors looking for the highest possible yield, there may be other ASX dividend shares that look more generous on paper.
But for investors wanting a mix of income, resilience, and business quality, I think CBA shares remain attractive.
Foolish takeaway
A $10,000 investment in CBA shares a decade ago would now be worth around $29,420, including cash dividends but excluding franking credits.
That is an impressive result from a business many investors may have seen as a steady income stock rather than a wealth creator.
