Goodness me! At 14yrs young and you started buying shares. Parents must have been coaching you.
CBA - Commonwealth Bank of Australia
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Dona Ferentes
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it was a demutualisation..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☹
in 2 tranches.
for retail, the general offer was
first lot 600 at $5.40.
2nd lot 400 at $7.40
...[i think.]
DRP for a while & still hold 2250 of 'em
Love those dividends
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Hmm Rabbito. Shouda, coulda but didn't.
Value Collector
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Mum and Dad had never bought shares before, But dad had convinced me to start saving.
but we bought the shares for the first time together, mum was working at the CBA bank at the time, it was around the time of the second government sale, and a bunch of the staff were all buying in, so mum and dad bought some and I bought some.
It kicked off a learning exercise for both of us.
Mum and Dad are now self funded retirees with the CBA forming the bulk of their income.
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Value Collector
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It does seem expensive, I am in the hold mindset, eg I am not selling, but will sit out and not rush to buy any more at the moment. They are buying back shares themselves, so technically my stake is increasing automatically anyway, so no need for me to do anything at the moment.
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I think my dilemma is: should i buy long duration short.
Yes everyone pilling on CBA, super funds plus retail.if you have been lucky to see a 40% jump in a year good on you but PE are real and as a 30y or so customer, i am finding their offer and services more and more lacking.
They once managed thru loans, savings, shares 95% of my assets.i believe this month, they are below 5%.
The fall came mostly in the last 5y at the most
Am i the only one to find their service below par and more expensive?
Who do they cater for? Suburban sprawl indebted to the hilt middle class or lower class?
At one stage a business needs to have customers, and be competitive so do i dare short CBA?
Value Collector
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yep they cater to The standard urban sprawl middle class with home loans and credit cards, and business.
But, they are also the number one bank when it comes to immigrants, so plenty of business there, often being a good source of deposits, credit card transactions, and eventually home loans.
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Value Collector
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I was thinking about writing some covered calls, but the few times I have done that I have always been burned and sold to early.
CBA was at $130 when I was considering writing the calls. So I would have been kicking myself now if I had.
I tend to just write puts, I have entry strategies my exit strategies don’t really exist
, I am a hold till maturity type of guy.
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Buying long duration put is hard: nothing available past 6 months or so as i looked just now.
Put a tentative buy but not sure it will succeed and all that on the horrendous asx option fees by my broker
Put a tentative buy but not sure it will succeed and all that on the horrendous asx option fees by my broker
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I give up: bad platform, zero liquidity, fee and pricing
just cleared my order
Maybe can play via CFD or similar but not for me
Anyone using CBA options here?
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I would be happy to sell you one, but I would be looking for a strike price of around $125.
yeah, I am regular put seller on CBA, happy to meet you in the market if you want.
Dona Ferentes
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one way to look at it...from around the traps:
Once upon a time, the banks offered high starting yields (due to lower prices), with steady, growing dividend streams, but that’s now a distant memory. For instance, CBA grew dividends by a compound annual growth rate (CAGR) of 9.2% in the decade to 2003, by 8.9% in the decade to 2013, but by just 1.74% in the decade to 2023. Similarly, Westpac increased dividends by 9% CAGR in the ten years to 2003, by 9.5% in the following ten years, yet dividends declined by 3.1% per annum in the decade to 2023.
The slowing dividend growth is the result of slowing earnings growth, due to a host of reasons. Increased competition for deposits and loans, greater capital requirements, slowing credit and economic growth, and other factors have played a part.
Future earnings growth also looks tepid at best, and consequently so does dividend growth. Even with franking credits, the picture doesn’t appear anywhere near as positive as it did over much of the past 40 years.
Yet, the current share prices don’t reflect this. CBA is sporting a price-to-earnings ratio (PER) of 27.7x, making it the most expensive bank in the developed world, and by a distance. The PERs of the other banks are cheaper, though far from cheap: Westpac (ASX: WBC) at 17.4x, NAB (ASX: NAB) at 17.5x, and ANZ (ASX: ANZ) at 15x.
These high prices have left dividend yields at the lower end of history, with CBA’s yield at 3%, Westpac’s 4.5% NAB’s 4.3%, and ANZ’s at 5.1%.
Once upon a time, the banks offered high starting yields (due to lower prices), with steady, growing dividend streams, but that’s now a distant memory. For instance, CBA grew dividends by a compound annual growth rate (CAGR) of 9.2% in the decade to 2003, by 8.9% in the decade to 2013, but by just 1.74% in the decade to 2023. Similarly, Westpac increased dividends by 9% CAGR in the ten years to 2003, by 9.5% in the following ten years, yet dividends declined by 3.1% per annum in the decade to 2023.
The slowing dividend growth is the result of slowing earnings growth, due to a host of reasons. Increased competition for deposits and loans, greater capital requirements, slowing credit and economic growth, and other factors have played a part.
Future earnings growth also looks tepid at best, and consequently so does dividend growth. Even with franking credits, the picture doesn’t appear anywhere near as positive as it did over much of the past 40 years.
Yet, the current share prices don’t reflect this. CBA is sporting a price-to-earnings ratio (PER) of 27.7x, making it the most expensive bank in the developed world, and by a distance. The PERs of the other banks are cheaper, though far from cheap: Westpac (ASX: WBC) at 17.4x, NAB (ASX: NAB) at 17.5x, and ANZ (ASX: ANZ) at 15x.
These high prices have left dividend yields at the lower end of history, with CBA’s yield at 3%, Westpac’s 4.5% NAB’s 4.3%, and ANZ’s at 5.1%.
Dona Ferentes
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hit $160 .. TWICE in 2 days ,at close/open
Then CBA drops 3 and a half percent today.
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Yeap a shame i could not find some tradable long duration put for CBA....
Value Collector
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What strike price and expiry date were you thinking, and what premium are you willing to pay?
Garpal Gumnut
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CBA is one of my picks in the Y24 Comp @debtfree . It pains me to see it still stay quite high as I sold earlier in the year at a profit but missed out on a fantastic run since. It is difficult to go against the flow. Also costly. Lesson learnt.
gg
gg
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Don't forget the old saying, you will never make a mistake, with hindsight.
Also you will never go broke, selling at a profit.
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Getting more or less day share price looking at at least 20 months /2y;
I found one put available only, but had not been traded for a while and could not buy..gave up
