Commonwealth Bank of Australia (ASX: CBA) shares are usually among the most popular dividend holdings because of their blue-chip status and satisfactory dividend yield.
However, the ASX bank share's dividend yield isn't exactly the biggest in the sector. It usually has the smallest dividend yield compared to names like National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).
But what CBA lacks in dividend yield, it makes up for in its dividend growth over the past 15 years and payout stability.
Pleasingly, the bank has increased its annual dividend each year since FY20 following the financial impacts of the COVID-19 pandemic.
Commonwealth Bank's latest result was another period of good performance by the ASX bank share. The CBA interim dividend per share increased by 4% to $2.35, funded by 6% growth in cash net profit after tax (NPAT).
Let's take a look at what analysts think the business could deliver in the 2027 financial year, which recently started.
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2027 dividend projection for owners of CBA shares
According to the independent projection on Commsec, the ASX bank share is projected to pay an annual dividend per share of $5.15 in the 2027 financial year.
At the time of writing, the forecast translates into a dividend yield of 3.1% excluding franking credits and a grossed-up dividend yield of 4.5% including franking credits.
If someone were to invest $10,000 in Commonwealth Bank, they would be able to buy 60 CBA shares (with a little bit of money left over).
With those 60 CBA shares, investors could receive $309 of cash and $441.43 overall, including the franking credits.
Is this a good time to invest in Commonwealth Bank?
According to CMC Invest, there have been eight analyst ratings on the business in the last three months.
Of those eight, all of them have been a sell rating. So, the investment professionals are very negative on how appealing the company's valuation is right now.
The average price target of those eight ratings is $120.38, according to CMC Invest. That means, collectively, those analysts are predicting the CBA share price could drop by 27% within the next year, at the time of writing.
After the Federal budget, the Commonwealth Bank share price dropped below $154, though it has somewhat recovered from that recent low point.
It seems there are better ASX shares out there that we can buy.
