cba target price, page-20

re: cba target price $30 Hi fludy,

this is exactly the point I have been trying to make all along (including to nearest and dearest sucked in by the percentage yield red herring.

As crashy says, at 2515, and div 69c, current div yield is 69 x 2 / 2515 = 5.5%

But if real dividend halved for some (or many) reasons such as bad debt provisions increasing, housing market collapse, continued successful attacks on lucrative fee income streams such as bank interchange and credit/debit card fees etc, then the yield would stay at the same rate. Its just (just, LOL!!) that the share price would halve or whatever the ongoing ratio of dividend reduction is.