Analysts tip jump in CBA dividend

Moves from rival banks to lift payout ratio expected to put pressure on CBA, ahead of record profit.

Analysts are tipping Commonwealth Bank of Australia Ltd will follow its peers and increase dividend payments ahead of posting a record $7.6 billion profit, according to The Australian Financial Review

Deutsche Bank analyst James Freeman has increased his forecast for the second half of the year to June by 15¢ to $2 a share, which would put the bank's  full-year dividend at $3.64 after it paid a first-half dividend of $1.64 a share, well ahead of last year’s $3.34, the newspaper said (see Robert Gottliebsen's Making BHP more like CBA). 

Goldman Sachs analyst Andrew Lyons also raised his forecast for CBA to a second-half dividend of $2.12 a share, taking the full-year payout to $3.76.

CBA is expected to announced a $7.6 billion full-year profit for the year to June. 

Recent moves by rival banks to increase ­dividends will put pressure on CBA to increase profits, analysts said. 

In May, Westpac paid investors a special one-off dividend of 10¢ a share.

ANZ Banking Group has flagged a higher payout ratio in the future and ran a $425 million share buyback to return funds to investors, while National Australia Bank also returned money to shareholders in a $300 million share buyback.