If you invest $10,000 in ANZ shares here's how much passive income you'll earn

ANZ shares have a long track record of paying out two fully franked dividends per year.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published May 8, 2023 10:08 am AEST

Investors on the lookout for historically reliable passive income may wish to revisit Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares.

On the capital gains front, ANZ shares are up 3.4% since the opening bell on 3 January. However, the S&P/ASX 200 Index (ASX: XJO) bank stock remains down 7.8% over the past full year.

Of course, that's not including the two fully franked dividends ANZ delivered over those 12 months.

Which brings us to how much passive income you could earn if you invested $10,000 in ANZ shares today.

Woman holding $50 notes and smiling. — Image source: Getty Images

How much passive income could ANZ shares provide?

Before diving into the answer, it's important to note that some of the dividend yields we discuss here are trailing yields. Meaning they're based on the dividend payments already made over the prior 12 months.

Now, with the exception of the pandemic-addled year of 2020, the passive income delivered by ANZ shares has been quite consistent. But future dividend payments could be higher or lower than what was paid over the year just past.

With that said, ANZ paid a final dividend of 74 cents per share on 15 December.

When the big four bank delivered its half-year results on Friday, the board declared an interim dividend of 81 cents per share. That's up 9.5% from last year's interim dividend, driven by all-time high cash earnings. Cash earnings for the six months were up 12% to $3.82 billion.

ANZ shares trade ex-dividend next Monday. Meaning investors who want to score the 81 cents per share in passive income need to own the bank stock by market close this Friday, 12 May to be eligible. That fully franked dividend will hit shareholders' bank accounts on 3 July.

All told then, ANZ has paid (or declared) a total of $1.55 per share in dividends over a year.

At Friday's market close share price of $23.80, that works out to a yield of 6.5%, with potential tax benefits.

Meaning that for a $10,000 investment, ANZ shares can offer $651 a year in convenient passive income.

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