The Motley Fool

Which ASX bank now has the biggest dividend yield?

We have seen several dividend cuts from ASX banks over the past year, which one now has the biggest dividend yield?

National Australia Bank Ltd (ASX: NAB) cut its half-year dividend from $0.99 per share to $0.83 per share.

Westpac Banking Corp (ASX: WBC) cut its half-year dividend from $0.94 per share to $0.80 per share.

Australia and New Zealand Banking Group (ASX: ANZ) saw its dividend franking level reduced from 100% to 70%.

Bank of Queensland Limited (ASX: BOQ) reduced its full year FY19 dividend from $0.76 per share to $0.65 per share.  

But there are three domestic ASX banks that haven’t reduced their income over the past year. The FY19 Mystate Ltd (ASX: MYS) dividend was maintained at $0.2875 per share. The Commonwealth Bank of Australia (ASX: CBA) dividend was maintained at $4.31 per share and the Bendigo and Adelaide Bank Ltd (ASX: BEN) dividend was maintained at $0.70 per share.

So, for new investment money, which ASX bank offers the biggest dividend yield?

NAB has a grossed-up dividend yield of 9.4%.

Westpac has a grossed-up dividend yield of 9.25%.

ANZ has a grossed-up dividend yield of 8.1%.

BOQ has a grossed-up dividend yield of 12.6%.

Mystate has a grossed-up dividend yield of 7.8%.

CBA has a grossed-up dividend yield of 7.4%.

Bendigo and Adelaide Bank has a grossed-up dividend yield of 9.9%.

It’s clear that banks like NAB, Westpac and BOQ have some of the biggest dividend yields, but they could be yield traps if the dividends are cut again in 2020.

Foolish takeaway

I can understand why some investors are looking for some of the biggest yields on offer, but I think it would be better to go for lower yields and that are more likely to be maintained. That’s why I’d rather go for Mystate, CBA and Bendigo Bank over some of the other ones.

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

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 over 40% off its high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or 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.

CLICK HERE FOR YOUR FREE REPORT!

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of MyState Limited and 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.