Earlier today Australia and New Zealand Banking Group (ASX: ANZ) released its full year results.
The banking giant reported flat cash earnings and held firm with its 80 cents per share final dividend.
However, much to the disappointment of income investors across Australia, the bank elected to frank its dividend to 70%. And judging by comments out of the bank, this doesn't look likely to be a one-off.
So, if you're looking for fully franked dividends, you may have to skip ANZ in future.
But which shares should you buy instead? Here are three fully franked dividends I would want in my portfolio:
BHP Group Ltd (ASX: BHP)
One of my favourite dividend shares is this mining giant. It has rewarded shareholders handsomely over the last 12 months thanks to a combination of asset sales, favourable commodity prices, and a bumper profit result. The good news is that BHP looks well-placed to repeat its strong performance in FY 2020. In light of this, I estimate that its shares currently offer a fully franked forward 6.1% dividend yield.
Coles Group Ltd (ASX: COL)
Based on its solid start to FY 2020 and its current dividend policy, I estimate that this supermarket giant's shares currently provide a forward fully franked 3.7% dividend yield. Whilst this isn't the biggest yield on the market, I believe it can grow strongly in the future thanks to its refreshed strategy, expansions, and the return of rational competition in the industry.
Super Retail Group Ltd (ASX: SUL)
Another share offering fully franked dividends is Super Retail. It is the retail group behind BCF, Macpac, Rebel, and Super Cheap Auto. It recently reported total sales growth of 4.2% for the first 16 weeks of FY 2020. Although this appears to have come at the expense of margin, I still believe it is well-placed for modest earnings and dividend growth this year. I estimate that its shares offer a forward fully franked 5.4% dividend yield.
