What’s the outlook for the ANZ share price in June?

How are things looking for ANZ in June and beyond?

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Key points

  • ANZ recently reported its FY22 half-year result, showing a mixed performance 
  • Some brokers still think ANZ is a buy as interest rates rise 
  • The big four ASX bank is expected to pay a large dividend yield 

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has fallen almost 10% since the end of April 2022.

ANZ shares started falling since the release of the FY22 first half result on May 4.

In that report, the company revealed that statutory net profit after tax (NPAT) rose by 10% to $3.53 billion.

However, profit before credit impairments and tax fell 7% to $4.16 billion. Profit before credit impairments, tax and notable items dropped 10%. In other words, the underlying performance of the business went backwards.

But, could things be about to turn around for the business?

Broker ratings on the ANZ share price

ANZ is rated as a buy by the broker Citi, with a price target of $30.75. That implies a possible 20% rise over the next year for the ANZ share price.

One of the reasons for the positivity is that a higher proportion of mortgages are variable loans, which should help the net interest margin (NIM).

On Citi’s numbers, the ANZ share price is valued at 12 times FY22’s estimated earnings and 11 times FY23’s estimated earnings.

Ord Minnett is another broker which rates it as a buy. The price target is $28.30, which implies a possible rise of 13%.

While the brokers have given price targets for the next 12-months, it’s impossible to know where a share price will go over the next week or month, let alone a year. Analysts are just giving a rating and a guess of where the ANZ share price will be sitting.

ANZ dividend yield

Some investors may be tempted by the dividend yield on offer from ANZ. It can play an important part in the total returns of the business. The franking credits may also be a welcome bonus for some investors focused on income.

But how large is the dividend going to be in the coming periods?

Citi has a dividend estimate which, at the current ANZ share price, equates to a grossed-up dividend yield of 8.4% in FY22 and 9.7% in FY23.

Ord Minnett also has a dividend estimate for ANZ. The FY22 grossed-up dividend yield is expected to be 8% and the FY23 grossed-up dividend yield is expected to be 8.7%.

ANZ share price snapshot

Since the beginning of 2022, the ANZ share price has fallen by just over 10%. It’s also down 13% over the past year and 9.7% over the last five years.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison 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.

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