Commonwealth Bank of Australia shares | ASX:CBA share price

Everything you need to know about buying CommBank shares.

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CommBank bank branch

CBA Share Price

CBA Dividend

4.91% (fully franked)

Quick stats

    • Full name: Commonwealth Bank of Australia
    • ASX ticker code: ASX:CBA
    • Industry: Financial services
    • Date listed on ASX: 1991
    • Market cap: $124.51 billion (2018)
    • CEO: Matt Comyn (2018)
    • Key competitors: Westpac, NAB, ANZ, ING, ME
    • CBA companies: Bankwest, Colonial First State, CommSec, ASB Group


About the Commonwealth Bank of Australia

The Commonwealth Bank, also known as CBA or CommBank, was established in 1911 and is the largest bank in Australia. Its services include retail banking, business banking, wealth management and home loans. It also owns Bankwest and ASB Bank in New Zealand. CBA's main rivals are Westpac, ANZ and NAB.

CBA stock profile

As a blue-chip dividend stock, CBA is a popular choice among Australian investors. Its dividend payment per share has remained fairly consistent compared to the other major banks, even during the 2018-2019 financial services royal commission.

Pros

  • Blue-chip. As one of Australia's biggest companies and the largest bank in Australia, CBA is considered a comparatively safe blue-chip stock choice among investors.
  • Dividend. One of the biggest pros for investors is CBA's consistently high dividend payout, even during times of volatility.
  • Consistent growth. Since it was listed in 1991, CBA's share price has grown steadily by more than 170% and many analysts expect that growth to continue.

Cons

  • No high returns. While safe, blue-chip financial stocks aren't likely to deliver the high returns that other more volatile stocks can offer.
  • Changing landscape. With new fintechs entering the arena, bigger companies such as CBA might be slower to adapt to the fast-changing landscape.
  • Scandals. CBA is still recovering from the fall-out of the 2019 royal commission that uncovered numerous occasions of misconduct and forced the bank to overhaul its advisory arms.

CBA major shareholders

ShareholderNumber of sharesPercent of capital
HSBC Custody Nominees397,409,96422.38%
J P Morgan Nominees Australia227,194,60012.79%
Citicorp Nominees Pty Limited107,321,4306.04%
National Nominees Limited54,993,3853.10%
BNP Paribas Noms Pty Ltd52,285,0372.94%
Bond Street Custodians Limited10,516,1970.59%
Australian Foundation Investment7,900,0000.44%
Navigator Australia3,557,3070.20%
Milton Corporation Limited3,141,6700.18%
Argo Investments Limited3,103,7310.17%
Nulis Nominees (Australia)1,972,8090.11%
Mr Barry Martin Lambert1,643,6130.09%
McCusker Holdings Pty Ltd1,480,0000.08%
Invia Custodian Pty Limited1,466,6960.08%
Australian Executor Trustees Limited1,390,6710.08%
Australian Executor Trustees1,128,4710.06%
BNP Paribas Noms (NZ) Ltd1,118,8470.06%
RBC Dexia Investor Services Australia Nominees Pty Limited1,093,1910.06%
Joy Wilma Lambert1,068,2500.06%

Source: CBA, as at 15 July 2019

Should I buy CBA stock?

Technical analysis is used in finance to forecast the direction of prices by studying the past movements of markets. This is not a recommendation, it represents an analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Here are a few points to consider before deciding whether to buy Commonwealth Bank shares:

  • The share price. Read news articles, CBA company announcements and recommendations by major brokers on the share price. Also look at the share price chart to see if the price has dipped lower recently.
  • The dividend. As you can see from the table below, the annual CBA dividend has remained steady around the $4.30 mark for the past four years. However, this doesn’t mean it will continue to do so. The latest annual report will include details on the dividend payment for future years.
  • Financial performance. It’s a good sign if the company is increasing its profits each year, while also reducing its debt.
  • The other Big Four banks. Commonwealth Bank is in constant competition with Westpac, NAB and ANZ to gain more customers. How do CBA’s products and services compare to its rivals?
  • Future market conditions. Are there any upcoming changes to banking regulations that may affect CBA’s profits? Also consider what is happening in the financial services sector that might impact negatively on the bank, such as the Royal Commission into the banking sector that is being held throughout 2018.

Commonwealth Bank dividend history

The table below details the Commonwealth Bank dividend payments between 2017 and 2020. As you can see, while the dividend has changed slightly each six-month period, it has remained fairly steady around the $4.30 mark per year for the past four years.

It’s also fully franked, meaning Commonwealth Bank has already paid the tax on the dividend so the shareholder doesn’t need to pay tax on these dividends again.

Payment date Dividend per shareFranking
19 February 2020$2.00100%
14 August 2019$2.31100%
13 February 2019$2.00100%
15 August 2018$2.31100%
14 February 2018$2.00100%
16 August 2017$2.30100%
22 February 2017$1.99100%

Source: Share Dividends

If you'd invested $5,000 in CBA 20 years ago

What if you'd decided to buy $5,000 worth of stocks in CBA around 20 years ago? Today your stocks would have grown by more than 95% and you'd also have received dividends of more than $10,000.

The below chart compares your return on investment if you'd bought $5,000 in each of the four biggest companies on the Australian Securities Exchange (ASX) two decades ago. The franking credits are either used to offset the tax bill or paid as a cash refund if your tax bill is zero.

CompanyShare price 4 Nov 1999Share price 4 Nov 2019Value gainDividendsFranking credits
CBA$26.64$77.05$9,461.34$10,818.32$4,635.89
CSL Ltd$6.67$259.55$189,565.22$14,814.77$839.73
BHP Group Ltd$7.41$36.48$19,615.38$12,516.87$5,217.81
Westpac$6.72$19.36$9,404.76$20,394.35$8,664.14
National Australia Bank$23.26$27.69$952.28$7,338.78$3,065.48
Total$228,998.98$65,883.09$22,423.05
Profits (not including tax): $317,305.12

The data used in the chart is for the sake of the example only and should not be relied upon as factual advice or construed as providing recommendations of any kind.

How to buy Commonwealth Bank shares

  1. Choose a share trading platform. If you’re a beginner, our table below can help you choose which broker to use.
  2. Open your account. You’ll need your ID, bank details and tax file number.
  3. Confirm your payment details. You’ll need to fund your account with a bank transfer, debit card or credit card.
  4. Find the shares you want to buy. Search the platform for CBA shares and place a buy order. It's that simple.

When you successfully purchase shares, you’ll receive a confirmation note from the broker, and the money will be taken out of your cash account. For more info about buy stocks, you can read our guide on the seven steps to buying shares.

Compare share trading accounts to buy Commonwealth Bank shares

Updated February 26th, 2020
Name Product Standard brokerage fee for ASX shares Standard brokerage fee for US shares Inactivity fee Currency conversion fee Markets
IG Share Trading
$8.00 or 0.1%
US$10 or 2 cents per share
$50 per quarter if you make fewer than three trades in that period.
0.50%
ASX shares
Global shares
Forex
CFDs
Margin trading
Special offer: Earn up to 10,000 Qantas Points when you start trading on a new IG Share Trading account. T&C applies.
Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, forex and CFDs, plus get access to 24-hour customer support.
Saxo Capital Markets (Classic account)
$6.99 or 0.1%
US$9.90 or 1 cent per share
$0
0.30%
ASX shares
Global shares
Forex
CFDs
Margin trading
Options trading
High quality, low-cost brokerage on global share trading.
Access up to 19,000 global stocks on 36 of the world’s major stock exchanges and enjoy some of the most competitive FX rates on the the market when you trade with Saxo Capital Markets.
Bell Direct Share Trading (Silver account)
$15 for first 10 trades
N/A
$0
N/A
ASX shares
Offer: For a limited time, get a custom deal based on your trading preferences when you switch to Bell Direct.
Bell Direct offers a one-second placement guarantee on market-to-limit ASX orders or your trade is free, plus enjoy extensive free research reports from top financial experts.
CMC Markets Stockbroking (Classic account)
$11 or 0.1% for first 10 trades
AU$19.95 for up to $5000 shares
$15 per month if you make no trades in that period.
Up to 0.60%
ASX shares
Global shares
Forex
CFDs
Margin trading
Options trading
Access a broad range of investment products from Australia and overseas.
Take advantage of IPOs and trade shares, warrants, options and CFDs listed across the ASX, SSX and Chi-X, and other major global exchanges, including US, Canada and UK markets.

Compare up to 4 providers

Or, if you’re interested in buying shares in popular global brands like Netflix, Amazon or Apple, we have a handy guide for that, too.

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