ASX bank shares like ANZ Group Holdings Ltd (ASX: ANZ) have always been known for their hefty (and fully franked) dividend income potential. But even by ASX bank standards, the yield on ANZ shares today is looking juicy right now.
So far this Tuesday, the ANZ share price has gained a rosy 0.73% and is up to $29.70. That's not too far away from the bank's current 52-week (and multi-year) high of $30.23 a share.
Even so, the ANZ dividend yield is currently sitting at a solid 5.96%.
That chunky yield is at the top of the range of what the ASX banking sector currently has on offer. For one, it's the largest yield out of any of the big four banks. Westpac Banking Corp (ASX: WBC) shares, for example, are currently trading on a yield of 5.19%.
National Australia Bank Ltd (ASX: NAB) shares are yielding 4.5% right now, while Commonwealth Bank of Australia (ASX: CBA) shares are on a paltry 3.43% dividend yield.
Even Bendigo and Adelaide Bank Ltd (ASX: BEN) shares have a lower trailing yield right now. This mid-tier ASX bank is currently offering a yield of 5.07%. Out of all the banks, only Bank of Queensland Ltd (ASX: BOQ) currently boasts a bigger yield than ANZ shares – 6.02%.
So if you're searching for passive income stocks to add to your ASX dividend portfolio, are ANZ shares a no-brainer buy for that 6% yield today?
Does a 6% yield make ANZ shares a buy?
Well, as most dividend investors would know, just because a stock has a high trailing yield doesn't mean it's an automatic buy for income. The market often prices shares that it doesn't have faith in to continue to deliver consistent dividends with a high yield.
However, I don't believe this is the case with ANZ. This bank has a very long history of delivering consistently robust dividend payments. This year's interim dividend of 83 cents per share was a healthy rise over last year's equivalent payout of 81 cents per share. Indeed, the 2023 total of $1.75 in dividends per share represented an increase over 2022's total of $1.46 and 2021's $1.42.
Given ANZ's character as a major ASX bank with a rusted-on customer base, I don't see this dividend consistency changing anytime soon. That's with one caveat though – unlike almost every other bank stock, ANZ shares no longer seem to come with full franking credits attached.
ANZ hasn't paid a fully franked dividend in over a year, and its last two payments were partially franked at 56% and 65%, respectively. While this would be annoying for income investors, it reflects the reality that ANZ has international operations.
As such, I would happily buy this stock today for a diversified dividend portfolio if maximising income was a major goal of my portfolio.
However, if maximising overall returns is the primary goal, I would probably stay clear of ANZ. Sure, it has a strong divided history. But its long-term share price growth has been abysmal. Check out for yourself how ANZ shares haven't really gone anywhere since 2007 here:
