Did you sink $8k into ANZ shares in 2020? If so, here's how much passive income you've received

Has the bank stock really returned 82% in just three years?

Key points
  • The ANZ share price has rebounded from its May 2020 low, posting a 59% increase to trade at $23.97
  • Meanwhile, the smallest of the big four banks has been paying relatively reliable dividends
  • Indeed, each ANZ share has yielded $3.48 of passive income over the last three years

If you bought shares in the smallest of the big four banks, ANZ Group Holdings Ltd (ASX: ANZ) three years ago, you might have bought in at the stock's multi-year low.

The bank share plunged on the onset of the COVID-19 pandemic, reaching a low of around $15.11 in late May 2020.

At that point in time, an $8,000 investment in the stock would have seen a buyer boasting 529 shares.

Today, that parcel would be worth $12,680.13. The ANZ share price last traded at $23.97, 59% higher than its 2020 low.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen 32% since that time.

With that in mind, no doubt investors who bought the dip in ANZ shares are happy with their investment.

And while they've been realising capital gains, they've also received some worthwhile passive income.

Australian dollar notes inside the pocket on jeans, symbolising dividends.

Image source: Getty Images

All dividends ANZ shares have provided since 2020

Here's a breakdown of all the dividends one who invested in ANZ shares exactly three years ago has likely received:

ANZ dividends' pay dateTypeDividend amount
December 2022Final74 cents
July 2022Interim72 cents
December 2021Final72 cents
July 2021Interim70 cents
December 2020Final35 cents
August 2020Interim25 cents
Total: $3.48

As the above chart shows, each ANZ share has yielded $3.48 of dividends over the last three years.

That means our figurative $8,000 investment has offered $1,840.92 of passive income over its life.

Impressively, that leaves ANZ shares having provided a return on investment (ROI), considering both share price appreciation and dividends, of nearly 82% since May 2020.

Not to mention, all dividends provided by the bank in that time have been fully franked. Thus, they could bring additional benefits for some investors come tax time.

Those invested in the bank won't have to wait long before they receive their next dividend.

ANZ traded ex-dividend last week, with its 81-cent interim dividend set to hit accounts late next week.

Considering its upcoming interim dividend and its most recent final dividend, ANZ shares currently boast a 6.47% dividend yield.

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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