Where is the CBA dividend heading?
The post Here’s the CBA dividend forecast through to 2024 appeared first on The Motley Fool Australia. –
If youâre an income investor, then the Commonwealth Bank of Australia (ASX: CBA) dividend has probably caught your eye over the years.
And with Australiaâs largest bankâs shares recently taking an almighty tumble, it may once again be catching eyes.
In light of the recent weakness in the banking sector, letâs take a look to see what analysts are expecting from the CBA dividend in the coming years.
What are analysts forecasting for the CBA dividend in the next few years?
According to a note out ofÂ Goldman Sachs, its analysts are expecting the CBA dividend to provide investors with attractive yields through to FY 2024.
In FY 2021, the banking giant rewarded its shareholders with a fully franked $3.50 per share dividend.
Goldman expects this to be increased to $3.75 per share in FY 2022. Based on the current CBA share price of $93.78, this will mean a fully franked 4% yield for investors.
The broker is then forecasting a 20 cents per share increase to $3.95 per share in FY 2023. This equates to a 4.2% yield at todayâs share price.
Finally, in FY 2024, Goldman is expecting an even bigger jump from the CBA dividend to a fully franked $4.33 per share. This represents an attractive 4.6% dividend yield for investors.
Is the CBA share price good value?
Unfortunately, the team at Goldman Sachs believe the CBA share price is still overvalued despite its recent pullback.
According to the note, the broker currently has a sell rating and $89.86 price target on its shares. This implies potential downside of 4.2% for its shares over the next 12 months.
Goldman sees more value on offer with other bank shares.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.