Everything you need to know about the ANZ dividend

We now know what the bank's shareholders are going to be paid.

| More on:
A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Owners of ANZ Group Holdings Ltd (ASX: ANZ) shares will be getting a larger-than-expected dividend although there has been a surprise with the bank's franking credits.

ANZ just reported its 2023 full-year result, which included a more generous dividend than perhaps some investors were expecting. The bank's continuing operations cash profit went up 14% to $7.4 billion, while the cash profit before credit impairments and tax increased 20% to $10.75 billion.

ANZ dividend declared

The board of ANZ decided to declare a final dividend for FY23 of 94 cents per share franked at 56%. That included an 81 cents per share dividend partially franked at 65% (not 100%) and an additional one-off unfranked dividend of 13 cents per share.

ANZ explained that the level of franking reflects the geographically diverse nature of its operations, as well as the timing of its proposed acquisition of the banking segment of Suncorp Group Ltd (ASX: SUN).

The bank's board acknowledged the level of franking was lower than what some shareholders may have been anticipating. That's why the board decided the additional unfranked dividend was "appropriate".

This proposed dividend brought the full-year dividend to $1.75 per share, which was 20% higher than the FY22 payment. The full-year dividend represents a dividend payout ratio of 70.8% of continuing operations cash earnings per share (EPS).

At the current ANZ share price, the proposed 94 cents per share dividend represents a partially franked dividend yield of 3.8%.

Payout timetable

An ex-dividend date is the day prospective investors would miss out on the upcoming dividend payment. If someone wants to receive the dividend, they need to own shares by the end of the last trading day before the ex-dividend date.

ANZ shares have an ex-dividend date of 16 November 2023. This means investors need to own shares by the end of trading on 15 November 2023, which is Wednesday – only two days away.

The payment date for the 94 cents per share dividend is 22 December 2023, so the ANZ dividend is an early Christmas present.

ANZ share price snapshot

Since the start of 2023, ANZ shares have gone up 7% as we can see in the chart below:

Motley Fool contributor Tristan Harrison 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.

More on Dividend Investing

Woman and man calculating a dividend yield.
Dividend Investing

Is WAM Capital stock a buy for its whopping 11% dividend?

Be careful what you wish for in an 11% yield...

Read more »

Person with a handful of Australian dollar notes, symbolising dividends.
Dividend Investing

Which ASX 200 healthcare share will pay the best dividend yield in FY24?

Healthcare stocks are a traditional defensive play in challenging economic times.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

3 ASX dividend shares to buy with 5%+ yields

Analysts are tipping these buy-rated shares to offer big yields.

Read more »

Happy man in a holiday shirt holding out Australian dollar notes, symbolising dividends.
Dividend Investing

3 ASX dividend stocks I own to pay for my retirement

I love the cash these shares are sending to me every year.

Read more »

Young girl with green hair and big bow dancing with joy
Dividend Investing

This high-yield ASX share could pay a dividend yield of almost 14% in FY25!

This stock could continue to be a fountain of cash.

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

Analysts say these top ASX 200 dividend shares are buys

Income investors might want to check out these buy-rated shares.

Read more »

Three young girls on a farm hold bunches of carrots triumphantly above their heads.
Dividend Investing

Income investors: 3 ASX dividend shares that could rally in 2024

Don't just grab the stocks with the highest yields. Check out these picks that have potential to bring back capital…

Read more »

Beautiful young couple enjoying in shopping, symbolising passive income.
Dividend Investing

An ASX dividend giant I'd buy over BHP stock

The dividends from this business have grown enormously.

Read more »