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!