Business · Markets · 23 hrs ago
CBA and Coles offer different strengths for Australian investors
Commonwealth Bank of Australia and Coles are large Australian companies that pay dividends to shareholders.
CBA is the country’s largest bank by market value, while Coles runs supermarkets, liquor stores and online grocery services.
Both companies’ dividends are fully franked, which can matter to investors seeking income.
Coles’ dividend yield was slightly higher at 3.41%, compared with CBA’s 3.31%.
CBA had a lower price-to-earnings ratio, but the two companies operate in different sectors, so that measure is not a direct comparison.
By 7 October 2026, Coles shares were up 10.4% for the year, while CBA shares were down 2%.
The figures show different trade-offs, but do not establish which share is right for a particular investor.
Motley Fool AU compared Commonwealth Bank of Australia (CBA) and Coles Group as potential investments for Australians aged 50.
Both companies pay fully franked dividends, while their businesses operate in different sectors.
Coles had a higher dividend yield and stronger year-to-date share-price performance through 7 October 2026.
CBA had a lower price-to-earnings ratio and a much larger market capitalisation.
The article’s writer said they would lean toward CBA as a reliable, lower-volatility cornerstone holding.
- Who
- Commonwealth Bank of Australia and Coles Group are compared for investors.
- What
- The article weighs their business strengths, valuations, dividends and recent share-price performance.
- When
- Published 11 October 2026; share-price figures are through 7 October 2026.
- Where
- Australia; both companies are listed on the ASX.
- Why
- The comparison is aimed at people considering investing a substantial sum at age 50.
CBA investment case
Coles investment case
Valuation
CBA investment case
CBA’s P/E ratio is 23.38, below Coles’ 28.18.
Coles investment case
Coles’ higher P/E ratio may reflect stable, recurring demand in supermarkets.
Income
CBA investment case
CBA’s dividend yield is 3.31%, and its dividends are fully franked.
Coles investment case
Coles’ dividend yield is slightly higher at 3.41%, and its dividends are fully franked.
Recent performance
CBA investment case
CBA’s year-to-date return was -2.0% through 7 October 2026.
Coles investment case
Coles’ year-to-date return was 10.4% through 7 October 2026.
No direct quotes in the coverage so far.
Coles became independent after spinning off from Wesfarmers.
CBA closed at $150.37, down 1.32% on the day, while Coles closed at $22.88, flat on the day.
Motley Fool AU published its comparison of CBA and Coles shares.
- CBA market capitalisation
- $251.64 billion
- Coles market capitalisation
- $30.75 billion
- CBA dividend yield
- 3.31%, fully franked
- Coles dividend yield
- 3.41%, fully franked
- CBA and Coles P/E ratios
- 23.38 and 28.18 respectively
Sources
Related news
Summerset reports 10% year-to-date sales growth as resales rise
CDC warns inquiry about poor practices in Australia’s AI data centre boom
GQG Partners had US$149.2 billion under management at September end
Argent BioPharma sets four priorities, including healthy ageing research
Analysts see potential gains for two ASX shares over the next year
Kaoko reports copper-silver discovery at Namibia's Chalkos project
Analysts flag ANZ, CBA and Evolution Mining shares as potential sells
Five ASX 200 shares stand out for quality and value
Adidas sues Australian fashion label White Fox over four-stripe clothing design
Business News subscription page outlines Western Australia-focused services
Western Australia’s EPA to review proposed Kimberley gas project
