Shareholders of the nation’s biggest bank can expect a windfall on April 2, when the Commonwealth Bank will pay out $3 billion in dividends.
The announcement came after the bank reported record half-year profits of $4.62 billion, an 8 per cent increase on the same time last year.
The bank, which is the second largest company listed on the ASX after BHP Billiton, will pay a dividend of $1.98 per share.
This is particularly good news for retirees, as the dividend is fully franked, meaning the 30 per cent corporation tax paid on the earnings can be claimed back.
It is also good news for most super fund members, who will receive the dividends plus a 15 per cent tax rebate.
CBA is now on track to see profits of $9.2 billion for the full financial year. That’s $500 million more than it achieved last financial year.