ANZ Group Holdings Ltd (ASX: ANZ) shares are ending September in a positive fashion.
In afternoon trade, the banking giant's shares are up 1% to $25.75.
This means that its shares are now up approximately 9% since the start of the year.
Image source: The Motley Fool
Can ANZ shares keep rising in October?
The good news is that a number of brokers believe the bank's shares can keep rising from here.
For example, earlier this week, analysts at Morgan Stanley upgraded the bank's shares to an overweight rating with a $27 price target. Elsewhere the team at Ord Minnett have an accumulate rating and $31 price target on its shares and Goldman Sachs has a conviction buy rating and $27.25 price target.
But ANZ is more than just potential share price gains. It is one of the biggest dividend payers on the Australian share market.
Pleasingly, all three brokers expect ANZ's shares to provide above-average dividend yields in the near term.
They are forecasting fully franked dividend yields of $1.62 to $1.64 per share in FY 2023 and then $1.62 to $1.66 per share in FY 2024. Based on the midpoint of these estimates, this would mean yields of 6.3% and 6.35%, respectively.
Commenting on its bullish view, Goldman said:
We reiterate our Buy (on CL) call on ANZ reflecting: further upside risk to ANZ Group returns from mix shifts in its Institutional division (towards higher returning Payments and Cash Management (PCM)); current market competitive dynamics which should continue to be a relative tailwind for Institutional NIMs; our assessment of the profitability of this division which concludes that these return improvements are largely sustainable; and the stock is trading at a 29% discount to peers on 12-mo fwd PPOP, vs. 14% 15-yr average.
