Australia and New Zealand Banking GrpLtd (ASX: ANZ) shares are up an impressive 21% in 2021.
In light of this, investors may be wondering if it is too late to buy its shares for its dividend.
Is it too late to buy ANZ shares for its dividend yield?
The good news is that it doesn’t appear to be too late to buy ANZ shares despite their impressive gain this year.
According to a recent note out of Bell Potter, its analysts have a buy rating and $30.00 price target on the bank’s shares.
Based on the current ANZ share price of $27.92, this implies potential upside of 7.5% over the next 12 months before dividends. And if you include the ANZ dividend, this potential return gets even more attractive.
Bell Potter is forecasting fully franked dividends per share of 140 cents in FY 2021, 146 cents in FY 2022, and 154 cents in FY 2023. This represents yields of 5%, 5.2%, and 5.5%, respectively, over the coming years.
Is anyone else bullish?
Goldman Sachs and Morgans are even more bullish on ANZ shares. The former has a buy rating and $30.50 price target, whereas the latter currently has an add rating and $34.50 price target.
Morgans’ price target of $34.50 suggests that there is upside of 23% over the next 12 months for ANZ shares.
The broker has also pencilled in dividends per share of 145 cents in FY 2021 and 165 cents in FY 2022. This implies fully franked yields of 5.2% and 5.9%, respectively, over the next two years. This stretches the total potential return to over 28%
Morgans was pleased with ANZ’s announcement of a $1.5 billion share buyback and suspects that there could be more to come once trading conditions return to normal.
All in all, based on what these brokers are saying, it may not be too late to buy ANZ for its dividends.