Owning ANZ Group Holdings Ltd (ASX: ANZ) shares usually means getting a good dividend yield due to the bank's typically rewarding payout.
As an ASX bank share, ANZ typically has a relatively low price/earnings (P/E) ratio and a fairly generous dividend payout ratio. This combination leads to a solid yield.
The bank is predicted to continue to deliver pleasing payouts for shareholders over the next couple of financial years.
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FY26
We're already more than three-quarters of the way through ANZ's 2026 financial year, which ends on 30 September 2026.
The company's FY26 half-year result was promising for the ASX bank share.
Compared to the second half of FY25 (and excluding FY25 second half significant items), HY26 cash profit saw operating expenses decline by 9%, cash net profit before provisions climbed 12%, and cash profit grew 14%.
With that result, ANZ's board of directors decided to maintain its interim dividend per share at 83 cents – the same as six months ago.
The projection on Commsec suggests the ASX bank share could pay an annual dividend per ANZ share of $1.66 in FY26. That possible 2026 financial year payout would be the same as the FY25 payout.
At the time of writing, ANZ's dividend yield for FY26 could be 4.6% excluding franking credits and 6.1% including franking credits.
FY27
When the company announced its FY26 half-year result in May, ANZ CEO Nuno Matos gave some commentary on the evolving situation for the local economy and what it could mean for customers (and owners of ANZ shares):
Our customers understand the world is more complex. Our corporate customers have been preparing for shocks, building capital and liquidity, maintaining flexibility and improving supply chain resilience. As such, there has been no material change in the overall borrowing behaviour of our customers.
Likewise, in both Australia and New Zealand, households entered this period with generally strong balance sheets and high savings buffers. We have not seen any material increase in new customers entering hardship or receiving assistance. However, we recognise that some individuals and businesses are navigating these challenging circumstances.
…Reflecting this raised risk in the external environment, we have increased our collective provisions, with our coverage ratio up 4 basis points. We continue to watch the situation closely.
The result announced today confirms our actions to reset the bank are working, but we have more to do. As we look ahead, we continue to focus on executing our ANZ 2030 strategy as we progress our five-year journey to be the best bank for customers and shareholders in Australia and New Zealand
ANZ borrowers (and prospective borrowers) will also have to deal with the flow-on effects of the Australian Federal Budget, including potentially lower investor demand due to changes to negative gearing and capital gains tax (CGT).
Overall, while ANZ is doing its best to reduce its cost base and become more profitable, it's operating in a difficult environment.
According to the projection on Commsec, ANZ is expected to maintain its dividend at $1.66 per ANZ share in FY27.
That means it would offer the same dividend yield next financial year – 4.6% excluding franking credits and 6.1% including franking credits.
In my view, there are other ASX shares that could be better buys for the long-term.
