The Bendigo Bank (ASX:BEN) dividend is smashing the big four right now

What kind of dividend is this bank offering today?

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The conventional wisdom on the ASX boards is that the big four ASX bank shares dominate the largest-yielding companies on our share market. Whilst this is usually true to varying degrees, it doesn’t mean that the big four banks such as Commonwealth Bank of Australia (ASX: CBA) or Westpac Banking Corp (ASX: WBC) necessarily offer the largest yields on the market, or even in the ASX banking sector. So today, let’s check out what the Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has to offer.

With a current market capitalisation of $5.17 billion, Bendigo Bank is a relative minnow compared to its larger banking brethren. The smallest bank of the big four by market cap is presently Westpac. But even though Westpac has had a rough few years, it still remains roughly 16 times larger than Bendigo Bank with its current market cap of roughly $78.8 billion.

But even so, size in regards to market cap is irrelevant to the size of a company’s dividend. So let’s see how Bendigo Bank measures up in that regard.

How does the Bendigo Bank dividend measure up against the big four banking shares?

So after a tumultuous 2020, ASX big four bank dividend yields have returned to what you might call their ‘normal’ levels. As it stands today, Westpac is the big four bank offering the largest yield on current pricing. It’s past two dividends equate to a trailing yield of 5.5% right now.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) is offering up a yield of 4.98% today.

National Australia Bank Ltd. (ASX: NAB) is next up with its 4.33% dividend yield.

And Commonwealth Bank comes in last with its 3.46% yield.

So how does that compare to Bendigo Bank?

Well, Bendigo paid out two dividends last year, as you’d expect. Shareholders received an interim payment of 28 cents per share in March. That was followed by the final dividend of 26.5 cents per share that was paid in September. Both dividends were fully franked.

That gives the Bendigo and Adelaide Bank share price a trailing yield of 5.92% on current pricing, which grosses-up to 8.46% with that full franking.

As you can see, that dividend yield runs rings around the majors as they stand today. No doubt a very welcome piece of information for all Bendigo Bank shareholders.

Should you invest $1,000 in Bendigo and Adelaide Bank right now?

Before you consider Bendigo and Adelaide Bank, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Bendigo and Adelaide Bank wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Sebastian Bowen owns National Australia Bank Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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