ANZ Group Holdings Ltd (ASX: ANZ) shares have long attracted passive income investors for their sizeable and reliable twice yearly dividend payments.
And with the exception of the past two dividends, which were franked at 56% and 65% respectively, ANZ's dividends have come fully franked going back more than a decade. Meaning you should be able to hold onto more of that passive income come tax time.
The S&P/ASX 200 Index (ASX: XJO) bank stock even paid two fully franked dividends in the pandemic addled year of 2020. Although these were significantly scaled back.
But it's not 2020 we're interested in here.
Instead, we turn the clock back to early 2021, by which time ANZ shares had recovered most of their COVID-fuelled losses.
On 29 January 2021, you could have picked up the ASX 200 bank stock for $23.52 a share.
Meaning your 500 ANZ shares will have set you back $11,760.
Now, atop earning regular passive income from those shares, you'll also have enjoyed some solid capital gains, as you can see in the chart below.
The ANZ share price closed yesterday at $30.46.
That means the 500 shares you bought in early 2021 would now be worth $15,230. Or a tidy gain of 29.5%.
As for that passive income…
Banking on ANZ shares for passive income
If you'd bought your ANZ shares in January of 2021, you'd have been eligible for the past seven dividend payments.
You'd still need to wait a few months for that eighth payment.
ANZ reports its full-year results and final dividend amount on 8 November. Eligible investors can then expect to receive that passive income payment in December, just in time for Christmas!
It's worth noting, though, that ANZ's FY 2024 interim dividend of 83 cents a share marked the highest interim payout since 2015.
Commenting on that passive income payment at the time, ANZ CEO Shayne Elliot said:
We've driven a lot of productivity gains, and we take those gains by getting more efficient and some of those go back to our shareholders in the form of dividends and others, a lot of it, gets reinvested into the business…
Adding up all seven dividend payments you have received since January 2021, they total $5.46 a share, mostly franked.
With 500 ANZ shares then, you'll have received $2,730 in passive income since 2021.
For your accumulated gains, let's add that $5.46 a share in dividends back to yesterday's closing price of $30.46 a share.
That brings the accumulated value of your ANZ shares to $35.92 apiece. This means your 500 shares bought for $11,760 in January 2021 will already have returned $17,960, or a gain of 52.7%.
