Each year, like the rest of the big four banks, ANZ shares a large portion of its profits with its shareholders in the form of dividends.
At present, the bank operates with a target dividend payout ratio of between 60% and 65%.
This means for every billion dollars of profit it makes, $600 million to $650 million lands right back in the pockets of shareholders. This led to a total of $4.2 billion being returned to them in FY 2022.
But will ANZ continue to line the pockets of shareholders with money? How much passive income would we receive if we invested $10,000 into its shares today? Let's find out.
Passive income from ANZ shares
On Thursday, ANZ shares finished the day trading at $25.37. This means that if you were to invest $10,000, you would receive approximately 394 units.
According to a note out of Goldman Sachs, its analysts are expecting the bank to declare a final dividend of 81 cents per share later this month with its full-year results. If this proves accurate, your 394 ANZ shares would generate $319.14 of passive income.
But that's just one dividend, there will be another coming in six months when the bank's half-year results are released.
As things stand, Goldman is expecting another 81 cents per share fully franked dividend with those results. This will mean another $319.14 of passive income heading your way.
All in all, that's a total of $638.28 in dividends expected over the next 12 months from a $10,000 investment.
It is also worth noting that Goldman currently has a conviction buy rating and a $27.38 price target on the bank's shares. If they were to reach that level, your 394 units would have a market value of $10,788 excluding dividends.
That's not a bad return if you ask me!