The S&P/ASX 200 Index (ASX:XJO) bank share sector has numerous examples of high-yielding names.
But, some are expected to produce more dividend income than others, in yield terms.
While dividend income isn't the only thing we should pay attention to, it can be particularly rewarding from Australian companies because of the yield-boosting effect of franking credits.
With that in mind, the higher-yielding ones could be particularly enticing.
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ANZ Group Holdings Ltd (ASX: ANZ)
ANZ is the biggest bank on this list with a market capitalisation of around $75 billion, according to the ASX.
One of the beneficial factors for banks is that they trade on low price/earnings (p/e) ratios, which boosts the dividend yield on offer.
Commsec numbers suggest that ANZ shares could pay an annual dividend per share of $1.54. At the current ANZ share price, this translates into a forward grossed-up dividend yield of 8.9%.
Not only is ANZ hoping to pay a good dividend to shareholders, but it also wants to grow profit by acquiring the banking division of Suncorp Group Ltd (ASX: SUN), which will add scale and allow the ASX 200 bank share to better compete in Queensland.
At the current ANZ share price, it's valued at 10x FY23's estimated earnings, according to Commsec.
Bank of Queensland Limited (ASX: BOQ)
BOQ has a market capitalisation of $4.6 billion, according to the ASX.
This regional bank may be a fraction of the size of ANZ, but its potential dividend yield is even bigger.
Commsec numbers suggest that BOQ could pay an annual dividend per share of 52 cents. This equates to a projected grossed-up dividend yield of 10.6%.
The banking sector is currently benefiting from the rising interest rate environment. Banks are passing on interest rates quicker to borrowers than to savers, which is helping push up lending profitability. This can enable bigger profits and larger dividends for the ASX 200 bank shares.
At the current BOQ share price, it is valued at 9x FY23's estimated earnings according to Commsec.
Bendigo and Adelaide Bank Ltd (ASX: BEN)
Bendigo Bank is another of the smaller but still sizeable banks in Australia. According to the ASX, it has a market capitalisation of $5.7 billion.
The ASX 200 bank share is expected to generate more profit in FY23, thanks to a mix of lending growth and stronger profitability due to the higher interest rates.
However, there is a danger for all banks that some households could run into trouble if they can't afford the much higher interest rates.
But, at the moment, the Bendigo Bank share price is valued at 11x FY23's estimated earnings with a possible grossed-up dividend yield of 8.5%.
