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Which Big Four ASX bank share will pay the biggest dividend this year?

CBA is the only Big Four bank due to report this earnings season, and that will occur next Wednesday.

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Bronwyn Allen
Bronwyn has 28 years of experience in journalism, copywriting, and media relations. She began her career as a reporter with News Corporation in Sydney in 1997. She later worked for two real estate corporations in communications and PR roles, then started her own freelance copywriting and publicity business. A keen shares investor, Bronwyn joined the Motley Fool Australia team as a copy editor and writer in June 2021.
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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.

Person handing out $50 notes, symbolising ex-dividend date.

Image source: Getty Images

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.

Motley Fool contributor Bronwyn Allen has positions in Anz Group, Commonwealth Bank Of Australia, and Westpac Banking Corporation. 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.

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