If I'd put $5,000 in ANZ shares at the start of 2024, here's what I'd have now

Was putting your money in this bank share a good idea this year?

| More on:

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

ANZ Group Holdings Ltd (ASX: ANZ) shares are on form again on Thursday.

In afternoon trade, the banking giant's shares are up over 1% to $29.00.

Investors have been buying ANZ and other bank shares today after the US Federal Reserve suggested that three interest rate cuts could be coming before the end of the year.

This gave Wall Street's financial sector a major boost, with the likes of Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), Bank of America (NYSE: BAC), and Morgan Stanley (NYSE: MS) all rising over 2%.

This led to three of the four US banks hitting 52-week highs during the session.

Clearly this has been a good time to invest in the banking sector, but just how fruitful has it been for buyers of ANZ shares?

Let's take a look and see what a $5,000 investment in the big four bank at the start of the year could be worth now.

A man in a suit smiles at the yellow piggy bank he holds in his hand.

Image source: Getty Images

$5,000 invested in ANZ shares

Firstly, if I had bought ANZ shares at the very start of the year, I could have paid $25.92 per share.

This means that for an investment of $5,002.56, I would have snapped up 193 units.

As I mentioned at the top, those shares are now changing hands for $29.00. That's almost 12% greater than the price I would have paid.

This means that at today's price, those 193 ANZ shares have a market value of $5,597, which is almost $600 more than I paid for them less than three months ago.

It is also worth noting that it won't be too long until the next ANZ dividend is declared. The banking giant is scheduled to release its results in approximately two months.

Goldman Sachs is forecasting a dividend of $1.62 per share in FY 2024. If we image that this comprises two dividends of 81 cents per share, my 193 units will soon provide me with $156.33 of dividend income.

If the broker is correct with its assumptions and the ANZ share price at least holds firm, that would bring the total return to approximately $750 on a $5,000 investment in the bank's shares.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bank of America and Goldman Sachs Group. 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 Bank Shares

Young girl peeps over the top of her red piggy bank, ready to put coins in it.
Bank Shares

If I invest $10,000 in NAB shares, how much passive income will I receive in 2027?

What passive income can investors expect from NAB?

Read more »

Nervous customer in discussions at a bank.
Bank Shares

Here's how much CBA shares would have to fall for a 4% dividend yield

What would it take for CBA to get back to a proper bank dividend yield?

Read more »

Bank building with the word bank in gold.
Bank Shares

ANZ share price rises 5% on 3Q FY26 update

Investors are looking past a 12% fall in the value of home loan applications since the Federal Budget.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Bank Shares

Revealed: The ASX bank share with the highest dividend yield today

The highest-yielding bank right now might surprise you.

Read more »

Woman on her phone with a view of the Sydney Harbour Bridge in the background.
Bank Shares

Are CBA shares a buy after its results?

The result gave me more reasons to like CBA's business, while also highlighting one area that could become tougher.

Read more »

Two men in suits face off against each other in a boxing ring.
Bank Shares

CBA vs NAB: Which ASX bank stock has made investors richer over the past year?

CBA and NAB are the largest bank stocks on the ASX by market cap.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Opinions

With cash profits jumping to $11 billion, are CBA shares now a buy, hold or sell?

CBA enjoyed a very profitable FY 2026. But is the ASX 200 bank stock a buy for FY 2027?

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Bank Shares

Everything you need to know about the CBA dividend

Let’s look at what payout Commonwealth Bank shareholders can expect.

Read more »