ANZ shares offer the best dividend yield of the big four in July

The smallest big four bank currently offers investors the best yield.

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Four ASX dividend shares investors stand in a line holding cash fanned in their hands with thoughtful looks on their faces.

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Key points

  • ANZ shares' dividend yield currently blows those offered by its big four peers out of the water 
  • As of Friday's close, ANZ's stock is trading with a dividend yield of 6.3% 
  • Meanwhile, Westpac shares come in second best with a dividend yield of around 6% 

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares currently boast a higher dividend yield than its S&P/ASX 200 Index (ASX: XJO) ‘big four’ peers.

The smallest big four bank by market capitalisation offers those invested in its stock a dividend yield of more than 6% right now.

Let’s take a closer look at the bank’s significant yield and how it stacks up to those offered by its peers.

ANZ shares boast a 6.3% dividend yield

The ANZ share price is $22.70 as of Friday’s close. That leaves the bank’s stock trading with an impressive 6.3% dividend yield.

Each share in the bank has handed investors $1.44 in dividends over the last 12 months.  

That pay-out was made up of a 72-cent final dividend for financial year 2021 – paid out in December. Another 72-cent interim dividend for the first half of financial year 2022 – offered to investors earlier this month – topped it off.

Additionally, both dividends were fully franked, meaning they could provide extra benefits to some shareholders at tax time.

Here’s how the other big four bank’s dividend yields stack up to that of ANZ:

  • Westpac Banking Corp (ASX: WBC)
    • Offers a dividend yield of around 6%
  • National Australia Bank Ltd (ASX: NAB)
    • Offers a dividend yield of nearly 5%
  • Commonwealth Bank of Australia (ASX: CBA)
    • Offers a dividend yield of around 4%

Unfortunately, however, the ANZ share price has posted a worse performance than its big four peers in 2022. It has tumbled nearly 19% year to date.

For comparison, the ASX 200 has slipped 12% this year while the S&P/ASX 200 Financials Index (ASX: XFJ) has fallen 11.3%.

Meanwhile, the CBA share price has fallen around 9.7% and those of Westpac and NAB are posting losses of 7.9% and 4.4% respectively.

Motley Fool contributor Brooke Cooper 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 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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