When it comes to dividends, the Commonwealth Bank of Australia (ASX: CBA) dividend is among the most popular on the Australian share market.
And even if your personal portfolio doesn’t include Australia’s largest bank, there’s a very strong probability that your superannuation fund owns its shares.
In light of this, investors will no doubt be wondering where the bank’s dividends are heading in the coming years. So let’s find out.
Where is the CBA dividend heading through to 2024?
Analysts are quite divided on where the CBA dividend is heading from here. But one thing they do agree on, is that it will be increasing over the coming years.
As a reminder, the banking giant paid shareholders a fully franked $3.50 per share dividend in FY 2021.
According to a note out of Macquarie, its analysts are expecting this to increase by 8.6% to $3.80 per share in FY 2022. Based on the current CBA share price of $101.08, this will mean a yield of 3.75% for investors.
The following year, in FY 2023, Macquarie is forecasting an increase to $3.90 per share. This would mean a fully franked 3.85% dividend yield for investors.
Finally, in FY 2024, another 10 cents per share increase is expected by Macquarie, bringing the CBA dividend to $4.00 per share. This represents a 3.95% yield for investors at today’s share price.
What else are brokers saying?
The team at Credit Suisse are a touch more upbeat on the CBA dividend.
They are forecasting fully franked dividends of $3.58 per share in FY 2022, $4.22 per share in FY 2023, and $4.67 per share in FY 2023. This will mean yields of 3.55%, 4.2%, and 4.6%, respectively, for investors over the three years.
Finally, Citi is even more upbeat and forecasting fully franked dividends per share of $3.85 in FY 2022, $4.40 in FY 2023, and $5.00 in FY 2024. This will mean the CBA dividend provides attractive yields of 3.8%, 4.35%, and 4.95%, respectively.
Time will tell which broker makes the right call. But shareholders will no doubt be hoping Citi is on the money with this one.
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