Has the ANZ dividend been growing?

The ASX bank’s shares are well known for their big dividends but have tbey been growing recently? We take a look.

| More on:
A kid stretches up to reach the top of the ruler drawn on the wall behind.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • ASX bank shares are well known for their dividends
  • ANZ is no different, with a yield north of 5% on the table today
  • But has the ANZ dividend been growing? Let's find out...

As an ASX 200 banking share, the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price arguably has some expectations to fill when it comes to paying dividends.

The big four ASX banks are staples of ASX investors’ share portfolios, and have been for decades. A large part of this fondness for bank shares is the banks’ proclivity to pay large, fully franked dividend payments.

On the surface, ANZ shares seem to be filling this implicit obligation with gusto today. As the bank currently stands, it has a fully franked dividend yield of 5.69% (or 8.13% grossed-up with the full franking) on the table.

But has the ANZ dividend been growing? After all, a growing dividend is a lot more valuable to an investor over a long period of time than a stagnant one.

Well, let’s look at the facts, shall we?

Is the ANZ dividend a grower?

ANZ’s current dividend yield comes from the bank’s two most recent dividend payments.

The first of these was the fully franked final dividend of 72 cents per share that investors saw paid out back in December. The second is the interim dividend of 72 cents per share (again fully franked) that investors will receive on 1 July later this year. ANZ shares traded ex-dividend for this payment on 9 May.

But how do these dividends compare to those investors have received in recent years?

Well, last year’s interim dividend was only worth 70 cents per share. So there has been a 2.86% year-on-year increase there. And last year’s final dividend of 72 cents was an even bigger jump against 2020’s final payment of 35 cents per share.

But that was in the midst of the initial COVID crisis, so arguably this comparison doesn’t count for too much.

Let’s go back to the pre-COVID world of 2019 then. Back in 2019, ANZ paid out two dividends worth 80 cents each. This was a repeat of the dividends that ANZ paid out back in 2018, 2017, and 2016. In 2015 the bank doled out an interim dividend of 86 cents per share and a final dividend of 95 cents.

So yes, the ANZ dividend has increased this year compared to last. But you don’t have to go back too far to see dividends from ANZ shares that were far higher than those on offer today. Make of that what you will.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Bank Shares

a man sitting at a computer at a desk has a look of anguish and trepidation on his face as he opens his eyes wide and made an aargh type expression with his mouth as his hair stands on end and his tie also stands on end with one part over each shoulder in what is supposed to be a humorous picture of something in a panic.
Bank Shares

Why did the CBA share price crash 13% in June?

CBA shares were sold off in June. Here's why...

Read more »

Four businessmen in suits pose together in a martial arts style pose as if ready to engage in competition or spring into a fight.
Bank Shares

Why this fundie favours NAB and Westpac shares out of the big four

Two of the big ASX banks are preferred over the others.

Read more »

red percentage sign with man looking up which represents high interest rates
Bank Shares

Westpac tips another big RBA rate hike next week

Is the RBA going to raise rates again next week? Westpac thinks it will...

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Bank Shares

Why the CBA share price is slipping lower today

ASX financials continue to struggle in June.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

Can investors bank on the NAB share price in July?

After a tough June, we consider if things can get better for the big four ASX bank.

Read more »

a group of people stand examining a large glowing cystral ball held in the hands of one of the group members while the others regard it with various expressions of wonder, curiousity and scepticism.
Bank Shares

What’s in store for the ANZ share price in July?

Investors will be hoping for a change in fortune for this ASX bank share.

Read more »

An attractive woman sits at her computer with her chin resting on her hand as she contemplates the outlook in July for the Macquarie share price
Bank Shares

What’s the outlook for the Macquarie share price in July?

The Macquarie share price has been on a bumpy ride in 2022, trading 18% down year to date.

Read more »

Four businessmen in suits pose together in a martial arts style pose as if ready to engage in competition or spring into a fight.
Bank Shares

Volt gets packing as ASX 200 bank shares prove to be a formidable force

The big banks beat out the market today. Here's what happened...

Read more »