Which ASX 200 bank share is forecast to pay the greatest dividend yield in FY24?

The highest predicted dividend yield is 7.4% fully franked.

Australian dollar $100 notes fall out of the sky, indicaticating a windfall from ASX bank shares

Image source: Getty Images

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Key points

  • The highest predicted dividend yield is 7.4% fully franked from the Bank of Queensland this financial year 
  • Westpac is a close runner-up with a predicted 7.1% yield fully franked in FY24
  • ASX 200 bank shares are among the most generous dividend payers of the entire market 

How is it possible that the ASX 200 bank shares are underperforming the S&P/ASX 200 Index (ASX: XJO) despite interest rates rising at their fastest pace on record?

Over the past 12 months, the ASX 200 has risen by 9.35%.

Here's what the ASX 200 bank shares have done over the same period:

  • The ANZ Group Holdings Ltd (ASX: ANZ) share price has ascended 9%
  • The Commonwealth Bank of Australia (ASX: CBA) share price has gained 7.7%
  • The Westpac Banking Corp (ASX: WBC) share price has lifted 6.2%
  • The Macquarie Group Ltd (ASX: MQG) share price has risen 5.1%
  • The National Australia Bank Ltd (ASX: NAB) share price has tumbled 6.6%
  • The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has declined 7%
  • The Bank of Queensland Ltd (ASX: BOQ) share price has dropped 19.2%.

The Reserve Bank has raised interest rates 12 times since it began raising rates in May 2022. This has lifted the cash rate from 0.1% to 4.1% today.

But as we've previously covered, rising interest rates present pros and cons for the banks.

Although they're still making mega-bucks, some have recently argued that they're battling downward pressure on their net interest margins (NIMs) and continuing economic uncertainty.

Which bank will pay the best dividend in FY24?

Having said all that, when it comes to dividends, the banks have always been generous payers.

And when you buy the banks at depressed share prices, you end up with a better dividend yield.

On top of all that, every bank bar Macquarie pays dividends with full franking credits attached.

So, let's take a look at the very latest FY24 dividend forecasts for ASX 200 bank shares.

Latest dividend forecasts on ASX 200 bank shares

ASX 200 bank shareFY24 forecast dividend yieldBroker
Bank of Queensland Ltd


(42 cents per share)
Westpac Banking Corp


($1.52 per share)
ANZ Group Holdings Ltd


($1.62 per share)
Bendigo and Adelaide Bank Ltd


(61.2 cents per share)
National Australia Bank Ltd


($1.66 per share)
Commonwealth Bank of



($4.35 per share)
Macquarie Group Ltd


($6.69 per share)
Yields are calculated based on share prices at the time of writing

To put all of this into a broader market context, most of these bank shares are among the best dividend payers of the entire ASX 200.

You'll find three of the major banks in our article covering the top 10 ASX 200 large-cap dividend-paying shares.

A junior bank is also listed in another article covering the top 10 ASX 200 mid-cap dividend-paying shares.

Motley Fool contributor Bronwyn Allen has positions in Anz Group, Commonwealth Bank Of Australia, Macquarie Group, and Westpac Banking Corporation. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. 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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