How does the Westpac dividend yield compare to the other ASX banks?

We see how the Westpac dividend stacks up against its ASX rivals.

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Key points

  • ASX investors usually expect big things from ASX bank shares when it comes to dividends
  • This extends to the big four bank Westpac
  • We look at how the Westpac dividend compares to its peers in the banking sector today

When it comes to Westpac Banking Corp (ASX: WBC) shares, it’s probably fair to say that investors expect big things. Not in terms of share price appreciation (although that is always welcome on the ASX). But in terms of dividend payments. As an ASX 200 bank (and a big four bank at that), Westpac is well-known as a strong dividend-paying share.

This blue-chip share has been paying generous and fairly regular dividends for decades, alongside most other ASX bank shares.

But Westpac’s credentials have also been rocked in recent years. For one, the bank has been subject to a number of fines from the government’s regulators.

Westpac was also the only ASX big four bank not to pay a final dividend in 2020, the first time it had skipped a biannual dividend payment for decades.

So how does the Westpac dividend measure up in mid-2022 compared to the other ASX banking shares? Well, let’s dig in and find out.

Does the Westpac dividend stand out from the other ASX bank shares?

As it currently stands, Westpac shares offer a fully franked dividend yield of 5.13% (7.33% grossed-up). That comes from the bank’s last two dividend payments, which consist of the upcoming interim payout of 61 cents per share that investors will receive on 24 June, as well as the final dividend of 60 cents that was doled out in December last year.

That compares quite well to a number of the other ASX banking shares. Commonwealth Bank of Australia (ASX: CBA) is certainly at the back of the line when it comes to yields on offer today. CBA shares currently have a fully franked yield of 3.67% on the tablet today.

Turning to the other big four banks, we have National Australia Bank Ltd (ASX: NAB) shares, with a fully franked yield of 4.64% on offer. Australia and New Zealand Banking Group Ltd (ASX: ANZ) pips Westpac though, with its current, fully franked yield of 5.88%.

So Westpac gets the dividend yield silver medal when it comes to the big four.

However, some other ASX banks currently have even higher yields on display right now. Take Bank of Queensland Limited (ASX: BOQ). It’s currently offering a fully franked dividend yield of 5.95% on recent pricing. Bendigo and Adelaide Bank Ltd (ASX: BEN) isn’t quite as impressive but still has a fully franked 5.01% yield as it presently stands.

So all in all, the Westpac dividend yield is towards the upper echelons of what the ASX banking sector is currently offering investors today when it comes to income. But things can change quickly in this space, so don’t expect this situation to last forever.

Motley Fool contributor Sebastian Bowen has positions in 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 has positions in 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 Scott Phillips.

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