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Should you buy Australia and New Zealand Banking Group?

In the past seven days shares in regional banking heavyweight, Australia and New Zealand Banking Group (ASX: ANZ) have fallen 3.6% for no apparent reason.

So is this an opportunity which dividend-hungry investors have been waiting for? Or the start of something larger?

Firstly, for new investors, it’s important to remember what ANZ offers potential shareholders.

ANZ is, unlike peers such as Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC), focused heavily on Asia. Asian markets such as China, Vietnam, The Philippines and Indonesia are just some of the countries which the bank has exposure to.

By 2017, ANZ hopes to draw between 25% and 30% of revenues from Asia, the Pacific, Europe and Americas (APEA) markets, combined. To do this, the bank is increasing brand awareness via branch rollouts for retail customers and by offering products and services such as foreign exchange and business banking for corporate clients.

Launched in 2007 by current CEO Mike Smith, so far, the ‘Super Regional Strategy’ appears to be paying dividends and in the most recent half year, APEA markets accounted for over 19% of the group’s FX-adjusted cash profit.

Closer to home, ANZ remains an extremely competitive major bank and continues to grow its exposure to mortgages quicker than its major bank peers, with a market share of approximately 15.2%. What’s more, its domestic operations are very profitable, boasting a net interest margin of 2.48%.

To buy, or not?

Despite a promising international expansion and its share price falling from over $34 last week, I still think investors (like me) will get a cheaper entry point in the future. I could be wrong and miss a golden opportunity, but I know bank shares are some of the first to fall hard when the market experiences a setback.

But I'm not sitting on my hands and waiting because there's one cheap and growing small-cap ASX stock with a 7% grossed-up dividend yield which I think is a standout buy today, even for risk-averse investors! It could even be a better long-term stock than ANZ! Our top analyst dubbed this ultra-promising small-cap, "The Motley Fool's Top Dividend Stock For 2014 - 2015". Best of all: You can get the name and code of this ultra-promising stock for free! Simply click here to download your free copy of "The Motley Fool's Top Dividend Stock for 2014-2015" today.

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any of the companies mentioned. 

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