Canadian Imperial Bank of Commerce recently announced that its Board of Directors declared a dividend of $0.90 per share on common shares for the quarter ending October 31, 2024, payable on October 28, 2024, to shareholders of record at the close of business on September 27, 2024.
Breaking Down CIBC's Dividend Yield and Growth
As of today, the Canadian Imperial Bank of Commerce currently has a 12-month trailing dividend yield of 4.53%. CIBC's 5-year compound annual growth rate is 5.15%, and the stock's 10-year compound annual growth rate is 6.21%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2024-09-02, CIBC's dividend payout ratio is 0.67.
