For many SMSF or institutional investors you just cannot beat blue-chip bank shares for big fully franked dividend yields.
In fact Australia & New Zealand Bank (ASX: ANZ) offers a term-deposit-thumping 6.5% dividend yield plus full franking credits based on Goldman Sach’s forecast for it to hold its FY 2020 dividend steady at $1.60 per share.
According to a December 5 note of out of Goldman’s research desk ANZ Bank should be able to meet tough new capital requirements imposed by the RBNZ with retained earnings from its New Zealand operations.
Importantly, Goldman’s expect the bank can do this without changing how much capital is channels from NZ operations to group operations.
In total the major Australian banks are expected to have to find another NZ$20 billion in new capital or around NZ$5 billion each to meet the RBNZ’s new capital requirements over the next seven years.
Despite this regulatory blow Goldman’s still values ANZ shares at $26.76 over the next 12 months. That means it has around 9 per cent upside plus dividends of $1.60 per share if Goldman’s analysis is on the money.
Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.