When it comes to dividends, the banking sector is a great place for investors to look. Among the most popular options at this side of the market is the Westpac Banking Corp (ASX: WBC) dividend. And it isn't hard to see why.
According to a note out of Morgans, its analysts expect Australia's oldest bank to pay a fully franked dividend of $1.36 per share in FY 2022.
Based on the current Westpac share price of $25.41, this will mean a yield of 5.4%.
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How does the Westpac dividend compare to the rest of the banks?
Elsewhere in the sector, Morgans is forecasting a $1.65 per share fully franked dividend from Australia and New Zealand Banking GrpLtd (ASX: ANZ) in FY 2022. This represents a 6% yield for investors.
The broker isn't expecting an as generous yield from Commonwealth Bank of Australia (ASX: CBA). It has pencilled in a fully franked dividend of $4.28 per share in FY 2022. With the CBA share price currently fetching $100.08, this will mean a yield of 4.3%.
The final big four bank, National Australia Bank Ltd (ASX: NAB), is forecast by Morgans to provide an attractive yield in FY 2022. Its analysts are forecasting a $1.33 per share fully franked dividend. Which, based on the current NAB share price of $27.27, will mean a 4.9% yield for investors.
Finally, Macquarie Group Ltd (ASX: MQG) is expected to pay a dividend of $5.81 per share in FY 2022. This equates to a yield of 3.3% based on the current Macquarie share price.
Which banks are in the buy zone?
Of the five banks mentioned, just ANZ and Westpac have been named as buys by Morgans.
The broker has an add rating and $29.50 price target on Westpac's shares and an add rating and $34.50 price target on ANZ's shares.
