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?

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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.

$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.

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