Commonwealth Bank of Australia (ASX: CBA) shares are among the most popular ASX dividend options because of the company's perceived stability and dividend yield.
However, the ASX bank share doesn't usually have the highest dividend yield of its major peers, including 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 has made up for with dividend stability and growth over the last decade and a half.
Commonwealth Bank has grown its payout each year since the COVID-impacted year of 2020.
The recent FY26 result was a great example of the bank's ability to generate larger earnings and dividends.
In FY26, CBA decided to hike its annual dividend per share by 4% to $5.05 following a 8% rise in statutory net profit to $10.9 billion and a 7% rise in cash net profit to $11 billion.
But, in this article, we're not thinking about FY26 payments, we're looking at the FY27 annual 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 $5.20 in the 2027 financial year.
At the time of writing, that forecast translates into a dividend yield of 3.3% excluding franking credits and a grossed-up dividend yield of 4.7%, including franking credits.
If someone were to invest $15,000 in Commonwealth Bank, they would be able to buy 94 CBA shares (with a little bit of money left over).
With those 94 CBA shares, investors could receive $488.80 of passive income cash and $698.29 overall, including the franking credits.
Is this a good time to invest in Commonwealth Bank?
According to CMC Invest, there have been eight analyst rating calls on the business in the last three months.
Of those eight, all of them were 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 eight ratings is $122.33. That means, collectively, those analysts are predicting the CBA share price could fall by 23% within the next year. The Commonwealth Bank share price has drifted lower since early August, so we'll see what happens next.
For now, there seem to be better ASX shares out there that Australians can buy.
