CBA - Commonwealth Bank of Australia

[qldfrog]

CBA dividend due to land on Friday, $2.50 ff

There's a DRP, and priced at $141.50. Pity CBA now trading around $137 !

also

I'll take the cash

Can you change at the last minute?
That is a hefty cost..losing all you dividend payments..
I tend to prefer cash usually.if only to balance reinvestments

 

[ajw01]

Can you change at the last minute?
That is a hefty cost..losing all you dividend payments..
I tend to prefer cash usually.if only to balance reinvestments

Please let me know if this can be done?

 

[qldfrog]

Please let me know if this can be done?

I was asking @Dona Ferentes ?
This is the actual reason i do not usually subscribe but i recently started to switch this on on my super shares
Precision: i do NOT hold CBA and this was a general question based on this CBA issue which can happen in many holdings

 

[Dona Ferentes]

hi there.

Generally, individual companies allow nominate election to a DRP if they are offering one. . There is a close date 4A.2, then a calculation period 4A.3.

For CBA, on p7 of the document, Appendix 3A., lodged as an ASX announcement:

4A.2 Last date and time for lodgement of election notices to share registry under DRP
Friday August 23, 2024 17:00:00

4A.3 DRP discount rate
0.0000 %

4A.4 Period of calculation of reinvestment price
Start Date 26/8/2024
End Date 20/9/2024.
.
So, if you have it lodged at 5pm on 23 Aug, then your shares will participate.

 

[Dona Ferentes]

I was asking @Dona Ferentes ?
This is the actual reason i do not usually subscribe but i recently started to switch this on on my super shares
Precision: i do NOT hold CBA and this was a general question based on this CBA issue which can happen in many holdings

doesn't seem to be the case for you, if not directly held. .. but if your super fund is participating, then a very small allocation. ??

Or, is it that you are reinvesting distributions from your super? If so, then 30 June or thereabouts will be the cutoff. (I think.)

 

[Value Collector]

Can you change at the last minute?
That is a hefty cost..losing all you dividend payments..
I tend to prefer cash usually.if only to balance reinvestments

You aren’t losing your dividend payments,

If you owned 100 shares before, you will own 102 after.

Yes your 100 shares have gone down in quoted value, but that would have happened regardless of whether you got cash or shares as the dividend.

It’s only really those 2 extra shares that you were issued that you paid a bit above current market value for, which is about $10 “loss”. But it works both ways some times you benefit by a lower price others a higher price.

 

[qldfrog]

doesn't seem to be the case for you, if not directly held. .. but if your super fund is participating, then a very small allocation. ??

Or, is it that you are reinvesting distributions from your super? If so, then 30 June or thereabouts will be the cutoff. (I think.)

No worries @Dona Ferentes .i do not own any CBA but there are a few direct investments within my Australian Super account where i have switch this reinvestment on.
It is a general issue.if you switch this option on, a minimal gain..you save brokers fees, sometimes a few percentage of latest SP but can expose yourself..no..not this way.. to reinvesting wo being really in charge..plus the relative nightmare of accounting...
Let's go back to this giant pig that CBA is

 

[Garpal Gumnut]

No worries @Dona Ferentes .i do not own any CBA but there are a few direct investments within my Australian Super account where i have switch this reinvestment on.
It is a general issue.if you switch this option on, a minimal gain..you save brokers fees, sometimes a few percentage of latest SP but can expose yourself..no..not this way.. to reinvesting wo being really in charge..plus the relative nightmare of accounting...
Let's go back to this giant pig that CBA is

Haha. "Giant Pig that is CBA. I must remember that. CBA is one of my picks in the Y24 Comp @debtfree . I sold during the year, switched to MQG, and CBA keeps on marching up.

Should I swallow my pride and get back in or be vindicated.??

FOMO FOMO

gg

 

[finicky]

For want of a better place to post this - the financials index easily best performer this week.
Not Held

From Bloomberg via Market Matters:

 

[Garpal Gumnut]

CBA continues to surprise to the upside. One of my picks in the 2024 Year Comp @debtfree . I cannot see anything to make me buy or sell it. I enclose a chart. A lot of green throughout the year.



gg

 

[Dona Ferentes]

new high ... and pressing on

 

[qldfrog]

new high ... and pressing on

View attachment 187434

Absolutely crazy pe for a bank..the new world ...

 

[Dona Ferentes]

Absolutely crazy pe for a bank..the new world ...

today's AFR sums it up. We can but stand on the sidelines and smile.


"Australia’s extraordinary banking valuation conundrum will come into sharp focus on Wednesday when Commonwealth Bank closes out the bank reporting season with the release of a first quarter profit of about $2.5 billion.
The nation’s banking analysts will plug the fresh numbers into their valuation models and inevitably say CBA is severely overvalued and investors should sell.

"Meanwhile, wealth management advisers at all the big firms will use this week’s trading update as a chance to highlight the attractiveness of owning CBA because of its reliable dividend income.

"It is not uncommon to have employees of the same integrated investment bank giving completely opposite advice.

CBA closed on Friday at $149.32, or about 54 per cent higher than the consensus 12-month target price for the bank of $96.81, according to the median consensus from 13 analysts surveyed by S&P Global Market Intelligence......

 

[qldfrog]

A new world as i have said.

 

[Dona Ferentes]

today's AFR sums it up. We can but stand on the sidelines and smile.

the tribe has spoken.

the numbers for the Q were out before open on the 13th ; the spreadsheet boys sold. Come the 14th, out of the blocks and closed at a new ATH

 

[Sean K]

Bloody hell!

Anyone here been in since the IPO?

Surely @divs4ever was.

 

[Dona Ferentes]

Bloody hell!

Anyone here been in since the IPO?

$5.40 ,

 

[Value Collector]

Bloody hell!

Anyone here been in since the IPO?

Surely @divs4ever was.

View attachment 188230

Not quite the IPO, but I CBA was my first holding I bought in 1996, for I think $12.36. I was 14 at the time.

 

[divs4ever]

Bloody hell!

Anyone here been in since the IPO?

Surely @divs4ever was.

View attachment 188230

absolutely NOT

CBA is on my ' AVOID list '

in fact the relative i inherited some shares from , worked at CBA before it was floated , and resisted buying them despite investing in shares when Poseidon Nickel was famous ( Vietnam War era )

and besides i only started investing at the very end of 2010 and the major bank i chased was MQG ( shares , preference shares and hybrids ) with some cash thrown at WBC ( but since reduced to a trivial amount )

but some members ( or members in retirement ) likely did

folks like @DrBourse and @greynomad would be my guess

who are the veteran members here , maybe some of those bought at IPO

the only share i have ever bought ( on-market ) on the first day of trading was AIR ( Airtasker )

 

[Rabbithop]

$5.40 ,

Not me but I know of 3 friends that hold n kept buying it since the merger or was it IPO from the early days n are now enjoying the interest for their annual holidays. When the share was at $100 I asked one of them, why don't he sell some for profit, he said why sell when I don't need the money, he was afraid of the CGT.
Smart thinking, while If it was me, I will reign in some profit n buy back when it's low..so I am the dumb one☹