Big, reliable dividends year after year? On the ASX, you can bank on 'em.
ASX income investors have loved ASX bank shares for their generous dividends for decades.
But the only bank among the Big Four that has a history of delivering both decent dividends and share price growth is Commonwealth Bank of Australia (ASX: CBA).
We'll be hearing from CBA next Wednesday when the financial giant drops its 1H FY24 report and announces its interim dividend. The other three banks reported in late 2023.
So, what's in store in terms of overall dividends from the Big Four ASX bank shares this year?
Which one will pay us the most passive income?
Let's consult the experts.
Which ASX bank share will pay the best dividend this year?
In 2023, CBA shares paid $4.50 in annual dividends, fully franked.
The consensus forecast published on CommSec today is for CBA shares to pay exactly the same in 2024. Based on the current CBA share price of $115.71, this equates to a dividend yield of 3.89%.
In 2023, National Australia Bank Ltd (ASX: NAB) shares paid $1.67 in annual dividends, fully franked.
The consensus forecast is for NAB shares to pay just one cent more at $1.68 per share in 2024. Based on the current NAB share price of $32.39, this equates to a yield of 5.18%.
In 2023, ANZ Group Holdings Ltd (ASX: ANZ) shares paid $1.75 in annual dividends with partial franking.
The consensus from analysts is that ANZ will reduce its annual dividend in 2024 to $1.62 per share. Based on the current ANZ share price of $27.59, this would be a yield of 5.87%.
By the way, the ANZ share price hit a new 52-week high of $27.67 today.
In 2023, Westpac Banking Corp (ASX: WBC) shares paid $1.42 in annual dividends plus full franking.
Analysts have a consensus expectation of $1.44 per share in annual dividends from Westpac this year. Based on the current Westpac share price of $24.31, this would be a yield of 5.92%.
The Westpac share price also hit a new 52-week high of $24.40 on Thursday.
And the best payer will be…
Based on yield, Australia's oldest bank, Westpac, will pay a better dividend than the other ASX bank shares in 2024.
In dollar terms, CBA shares will pay the most.
