Bought $5,000 of ANZ shares 5 years ago? Here's how much passive income you've received

Have ANZ's dividends made up for its share price's poor performance?

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A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price

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Key points

  • The ANZ share price has disappointed over the last five years 
  • It's dumped 16.7% since January 2018 to trade at $24.75 right now
  • Fortunately, the bank's share price tumble has been offset by its consistent dividend payments

The last five years have likely been rough for those invested in ANZ Group Holdings Ltd (ASX: ANZ) shares. The stock has tumbled 14% in that time.

Right now, Each ANZ share will set a buyer back $24.75. However, back in January 2018, the banking stock was trading at $28.88.

That means a near-$5,000 investment five years ago would be worth just $4,281.75 today.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained around 22% over the last half-decade.

But have the dividends on offer from ANZ made up for its share price's disappointing performance? Let's take a look.

ANZ dividends help investors break even despite share price falls

Here're all the dividends the smallest of the big four banks has paid out since January 2018:

ANZ dividends' pay dateTypeDividend amount
December 2022Final74 cents
July 2022Interim72 cents
December 2021Final72 cents
July 2021Interim70 cents
December 2020Final35 cents
August 2020Interim25 cents
December 2019Final80 cents
July 2019Interim80 cents
December 2018Final80 cents
July 2018Interim80 cents
Total: $6.68

An investor who bought $5,000 worth of ANZ shares five years ago, likely would have realised $6.68 per share in dividends over the life of their holding – a total of $1,155.64.

Thereby, their investment would have broken even in the end, even returning around $430.

That leaves the banking stock having posted a return on investment (ROI) of around 8.8%, including both share price movements and dividends.

Additionally, some shareholders might have benefited from franking credits offered by the ASX 200 bank in that time. Nearly all its payouts over the last five years have been fully franked.

ANZ shares currently boast a notable 5.9% dividend yield. And that could be set to grow.

Top broker Citi is tipping ANZ to pay out $1.66 per share in dividends this financial year and $1.76 per share next financial year, my Fool colleague James reports.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 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.

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