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Down 15% and paying record dividends: Are CBA shares now a good buy for passive income?

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Bank SharesDividend Investing

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  • Commonwealth Bank of Australia shares are paying more dividends than ever before.
  • As for FY 2026, CBA paid a franked interim dividend of $2.35 a share on 30 March.
  • While investors buying CBA shares today will receive materially higher future dividend yields than those who bought the stock in the first weeks of August, CBA's dividend yield still trails its three biggest rivals.
  • Many remain concerned the ASX 200 bank remains overvalued despite the past month's share price retrace.

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Commonwealth Bank of Australia shares are paying more dividends than ever before. As for FY 2026, CBA paid a franked interim dividend of $2.35 a share on 30 March.

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Commonwealth Bank of Australia shares are paying more dividends than ever before.

Just keep in mind that future yields may be higher or lower depending on some company specific and macroeconomic factors.

As for FY 2026, CBA paid a franked interim dividend of $2.35 a share on 30 March.

When the bank released its FY 2026 results on 12 August, it reported a 7% increase in cash net profit after tax to $11 billion.

That brings the total FY 2026 dividends to $5.05 a share, up 4.1% from FY 2025 and representing a new all-time high passive income payout.

While investors buying CBA shares today will receive materially higher future dividend yields than those who bought the stock in the first weeks of August, CBA's dividend yield still trails its three biggest rivals.

For example, at recent share prices, National Australia Bank Ltd and ANZ Group Holdings Ltd shares both trade at dividend yields of 4.4%.

Despite the passive income on offer, most analysts recommend steering away from CommBank stock at the moment. Many remain concerned the ASX 200 bank remains overvalued despite the past month's share price retrace.

Earlier this week, Shaw and Partners' James Bills issued a sell recommendation on CBA shares.

Shortened to 1 minute of reading, this version reads 14.8 on the Niral Score.

You are reading our version, not theirs. This is The Motley Fool Australia's report shortened to its most important sentences, in plainer words, with verdicts and loaded words taken out. Plain description stays, and so do adjectives that carry a fact, such as "former" or "federal". The reporting, the facts and the quotations are theirs — quotations are never edited — and the indicators beside it measure this version. Hover or tap Adjectives to see every one left in the text.

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Outlet Niral ScoreAdjectivesSentimentHappiness
The Motley Fool Australiaas they published this story 20.3 23 0.2 55.3
Mundane Readneutralized from The Motley Fool Australia 16.8 21 0.2 55.3

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