The Australia and New Zealand Banking Group Ltd (ASX: ANZ) dividend is one of the most popular options on the Australian share market for income investors.
For decades, the banking giant has been sharing a portion of its profits with its shareholders each year.
In light of this, investors may be keen to know where the ANZ dividend is heading from here.
Let's take a look at what one leading broker is expecting for the bank's returns in 2023.
How big will the ANZ dividend be in 2023?
First things first, let's start with the most recent full year dividend that the bank has paid.
Due to its financial year running 1 October to 30 September, FY 2021's fully franked dividend of $1.42 per share is the most recent full year dividend.
Looking ahead, according to a note out of Citi, it is expecting the bank to declare a fully franked final dividend of 72 cents per share later this year.
This will bring the ANZ dividend for FY 2022 to a fully franked $1.44 per share, up modestly year over year. And based on the current ANZ share price of $23.43, this will mean a 6.15% dividend yield for investors.
But the good news is that Citi is expecting a much larger increase in the ANZ dividend in FY 2023.
Its analysts are currently forecasting a fully franked $1.56 per share dividend for that financial year, which represents a 12 cents or 8.3% increase on its FY 2022 estimate.
If Citi's forecast proves accurate, it will mean a generous dividend yield of almost 6.7% for income investors.
But it gets better. Citi also sees plenty of upside for the ANZ share price. It currently has a buy rating and $29.00 price target on the company's shares. This implies potential upside of almost 24% for investors, as well as those generous dividend payments. Not bad!
