This week the Commonwealth Bank will return $3.4 billion to more than 800,000 Australian households who directly own CBA shares and to the millions more who own shares through their superannuation funds.
Since announcing a half-yearly profit of $4.9 billion last month there has been a flurry of activity to ensure dividends can be distributed across the country and to action our shareholders’ dividend reinvestment plans.
David Craig, Chief Financial Officer, Commonwealth Bank said, “Over the coming week we will distribute $3.4 billion across the country – these are the dividends we’re providing to our shareholders for placing their trust in us.
“As a strong and profitable financial institution, we’re proud of the contribution we make to the economy as we continue to deliver for our shareholders, our customers and the community. The dividends we pay is another example of this,” said Mr Craig.
According to CommSec analysis, the Commonwealth Bank’s multibillion dollar dividend return will be the largest half-yearly payment by a listed Australian company so far this financial year.
The dividend payment accounts for approximately 70 per cent of Commonwealth Bank profits for the first half of the year, with the remaining $1.5 billion profit reinvested into the Group to allow for future growth.
Approximately 80 per cent of CBA shareholders are based in Australia and own shares directly or through their super funds.
Some shareholders choose to participate in CBA’s dividend reinvestment plan. This allows them to reinvest all or part of the dividend paid on their shares in additional shares, instead of receiving the dividend in cash.
The Group has paid out, on average, more than three quarters of profits to shareholders as dividends since listing on the Australian Stock Exchange in 1991.
Find out more how CBA helps people save, spend and invest here.
The Habib family from Adelaide is one of the many households who have continued to place their trust in the Commonwealth Bank and will benefit from the dividend returns. You can see the Habib’s story here.