This morning, investors learned the details of the interim ANZ Group Holdings Ltd (ASX: ANZ) dividend.
That came after the S&P/ASX 200 Index (ASX: XJO) bank stock reported its half-year results for the six months ending 31 March.
In relatively good news for passive income investors, the board decided to keep the ANZ dividend steady at 83 cents per share. The FY 2025 dividend will be 70% franked, up a tick from the 65% franking credits that came with the FY 2024 interim dividend.
During the Thursday lunch hour, the ANZ share price is down 2.6%, with shares changing hands for $29.21 apiece.
For some context, the ASX 200 is just about flat at this same time.
Now, here's what's happening on the passive income front.
Image source: Getty Images
How to bank the ANZ dividend
The board elected to keep the ANZ dividend in line with last year's after the bank reported revenue of $11.00 billion for the six-month period, up 5% from the previous half-year.
And cash profits surged by 12% from H2 FY 2024 to $3.57 billion.
As the Motley Fool's James Mickleboro pointed out this morning, "A key driver of this growth was the acquisition of the Suncorp Bank business, which was completed at the end of July 2024."
As for that passive income, the 83 cents per share ANZ dividend represents a pending yield of 2.8% at the current share price of $29.21.
If you're looking to bank that payout, you'll need to own shares at market close on 12 May. ANZ shares trade ex-dividend on Tuesday, 13 May. You can then expect those dividends to land in your bank account on 1 July.
Unless, of course, you wish to take advantage of the power of compounding and let those dividends ride.
In that case, ANZ also announced that its dividend reinvestment plan (DRP) and Bonus Option Plan (BOP) will continue to operate for the 2025 interim dividend at no discount.
If we add in the final dividend of 83 cents per share, paid on 20 December, ANZ shares trade on a 70% franked yield (part pending, part trailing) of 5.7%.
What did management say?
Commenting on the half-year results that saw the ANZ dividend remain steady, outgoing CEO Shayne Elliott said, "Our strong performance has again been driven by our continued momentum across each of our divisions."
Elliot added:
We have delivered record half year revenues. This highlights both the strength of our franchise and the step change in our earnings from the inclusion of the first full half of Suncorp Bank's earnings.
Nuno Matos will take over as CEO on Elliot's departure in July.
