Here’s the ANZ dividend forecast through to 2024

Where is the ANZ dividend heading?

| More on:
A businesswoman weighs up the stack of cash she receives, with the pile in one hand significantly more than the other hand.

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

When it comes to dividends, Australia and New Zealand Banking Group Ltd (ASX: ANZ) and the big four banks are among the most popular options for income investors.

In light of this and recent weakness in the banking sector, I thought I would take a look to see what analysts are expecting from the banks in the coming years.

On this occasion, let’s take a look at the ANZ dividend.

What are analysts forecasting for the ANZ dividend in the next few years?

According to a note out of Goldman Sachs, its analysts are expecting the big four bank to consistently grow its dividend each year through to FY 2024.

In FY 2021, the ANZ dividend was a fully franked $1.42 per share.

Goldman expects this to increase to $1.45 per share in FY 2022. Based on the current ANZ share price of $23.78, this implies a yield of 6.1% for investors.

Pleasingly, more of the same is expected in FY 2023, with Goldman forecasting a 7 cents increase to a fully franked $1.52 per share dividend. This represents a yield of 6.4% for investors if bought at the current price.

A similar increase is expected for the ANZ dividend in FY 2024. The broker is forecasting a fully franked $1.60 per share dividend, which implies a yield of just over 6.7% for investors.

Are its shares a buy?

While Goldman Sachs only has a neutral rating on the ANZ share price, it is worth noting that recent weakness has dragged its shares well below the broker’s price target.

Its analysts currently have a price target of $29.84, which implies potential upside of 25% for investors over the next 12 months. That’s more potential upside than some buy ratings out there!

Motley Fool contributor James Mickleboro 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 Dividend Investing

Two male ASX investors and executives wearing dark coloured suits sit at a table holding their mobile phones discussing the highest trading ASX 200 shares today
Dividend Investing

Here’s the Telstra dividend forecast through to 2024

The Telstra dividend could be increasing in the near future...

Read more »

A couple sits in their lounge room with a large piggy bank on the coffee table. They smile while the male partner feeds some money into the slot while the female partner looks on with an iPad style device in her hands as though they are budgeting.
Dividend Investing

2 excellent ASX dividend shares experts rate as buys

Here are a couple of excellent dividend shares experts say are buys...

Read more »

Three colleagues stare at a computer screen with serious looks on their faces.
Dividend Investing

‘Exciting’ ASX 200 dividend share expected to deliver material returns: expert

Investors seeking income stocks need to do more than simply look at what the companies paid out over the past…

Read more »

A man wearing glasses and a purple vest holds his hand to his chin and wonders
Resources Shares

Are Fortescue shares a buy for income or are they a dividend trap?

Are Fortescue shares a 15.5% dividend trap right now?

Read more »

businessman handing $100 note to another in supermarket aisle representing woolworths share price
Dividend Investing

Guess how much Woolworths shares have paid in dividends over the last 5 years

Those who have been invested in Woolworths shares over the last half-decade can pat themselves on the back.

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Dividend Investing

Brokers name 2 ASX dividend shares to buy

Brokers have named these dividend shares as buys...

Read more »

Happy young man and woman throwing dividend cash into air in front of orange background
Dividend Investing

Time is running out to secure the Rio Tinto dividend. Here’s what you need to do

Investors have until the market close on Wednesday to lock in Rio Tinto's latest dividend.

Read more »

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Dividend Investing

Here’s the Whitehaven Coal dividend forecast through to 2024

Will Whitehaven Coal pay big dividends to investors?

Read more »