Subscribe Sign in

Business

Should I buy CBA shares in October?

1 min read Rewritten in plain language

Bank Shares

Show what we removed
  • The bank has leading positions across home lending and deposits, a large customer base, and a strong digital offering.
  • CBA generated earnings per share of $6.58 in FY26.
  • At today's share price, the FY27 forecast implies a dividend yield of around 3.4%, before considering any franking benefits.
  • For CBA, its large deposit base and strong position in Australian banking leave it relatively well placed to navigate that environment.

4 sentences from our version of the report, chosen to cover it. Nothing here is written; every line is in the article below. How

CBA generated earnings per share of $6.58 in FY26. At today's share price, the FY27 forecast implies a dividend yield of around 3.4%, before considering any franking benefits.

The report’s most important sentence, shortened and in plain words. How

Headline check

The one thing this headline claims is in the report.

Figures, names and quoted words in the headline, looked for in the report itself — not in the summary above. One claim in this headline could be checked, so this is a narrow pass and not a thorough one. How this is checked

PIIGS Mk 4 map
PIIGS Mk 4 map The original uploader was Snow storm in Eastern Asia at English Wikipedia . / Wikimedia Commons, CC BY

Commonwealth Bank of Australia shares are now trading around $150.83 as we approach the end of the month.

The bank has leading positions across home lending and deposits, a large customer base, and a strong digital offering.

The earnings outlook is steady rather than spectacular.

CBA generated earnings per share of $6.58 in FY26. Consensus estimates point to this increasing to $6.67 in FY27 and $6.86 in FY28.

Dividends per share are expected to rise from $5.05 in FY26 to $5.15 in FY27 and $5.30 in FY28.

At today's share price, the FY27 forecast implies a dividend yield of around 3.4%, before considering any franking benefits.

Interest rates could become a part of the story in October.

The Reserve Bank of Australia is widely expected to raise the cash rate this week, with the possibility of another increase later in the year.

For CBA, its large deposit base and strong position in Australian banking leave it relatively well placed to navigate that environment.

At $150.83, CBA shares are trading on a PE ratio of about 22.6 times forecast FY27 earnings and around 22 times FY28 earnings.

Shortened to 1 minute of reading, this version reads 14.5 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.

How outlets headlined it

Each outlet's own headline. Struck through: the loaded words our version leaves out. Plainest first.

  • The Motley Fool Australia Should I buy CBA shares in October? plain
  • The Motley Fool Australia Buy, hold, sell: CBA, BHP, CSL shares plain
  • The Motley Fool Australia Buy, hold, sell: Xero, South32, Woodside shares plain

How each outlet filed it

Outlet Niral ScoreAdjectivesSentimentHappiness
The Motley Fool Australiaas they published this story 26.2 21 0.8 53.4
The Motley Fool Australia 14.9 11 0.1 56.4
The Motley Fool Australia 18.1 14 -0.0 39.4
Mundane Readneutralized from The Motley Fool Australia 14.3 11 0.1 56.4

Sign in to react.

Comments

Nothing here yet.

Sign in to comment.

Questions

Readers can ask a question about this story here. Questions and answers are for subscribers. Sign in to read them.

Comments are read before they appear where anything in them needs a person to look. Nothing posted here is ever deleted; a comment taken down keeps its text and the reason, so the decision can be looked at again. How this works

The same event elsewhere

2 other outlets filed this story. The scoreboard above is what they did differently.