ANZ Group Holdings Ltd (ASX: ANZ) shares have been a solid choice for passive income over the past decade, aside from the COVID-hit year of 2020.
No dividend is guaranteed of course, but the bank has been very consistent in its payouts.
Banking stocks can deliver consistent earnings because borrowers make monthly repayments. Plus, repaying a loan is usually extremely high on the priority list for both households and businesses, so their earnings are fairly defensive.
While ANZ's dividend has been consistent, there hasn't historically been much growth. Let's see what analysts think could happen if someone were to invest $10,000 in ANZ shares, starting with the dividend projections.
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FY27 potential payout
According to the forecast on Commsec, the business could deliver a stable annual dividend payout of $1.66 per share in the 2026 financial year.
But, we're here to talk about the 2027 financial year. Using the projection on Commsec, the ASX bank share is forecast to pay an annual dividend per share of $1.66 in FY27, too.
At the time of writing, that translates into a forward dividend yield of 4.4%, excluding franking credits, or 5.7% including franking credits.
That's not the biggest dividend yield on the ASX, though it's superior to what's on offer to Commonwealth Bank of Australia (ASX: CBA).
What would a $10,000 investment in ANZ shares do?
If someone were to invest $10,000 in ANZ shares, they would be able to buy 268 ANZ shares (with a little bit of money left over), at the time of writing.
With those 268 ANZ shares, investors could receive $444.88 of cash and some franking credits. The level of franking credits are not known at this stage because the ASX bank share is only paying partially franked dividends.
Is this a good time to invest in the ASX bank share?
According to CMC Invest, there have been six analyst ratings on ANZ shares in the last three months. Of those six ratings, just two were buy ratings, and four were hold ratings.
Of those six analyst ratings, the average price target is $35.44. This suggests the analysts are collectively expecting a potential 5% decline over the next 12 months.
So, the passive income may be offset by share price declines. Therefore, there could be better places on the ASX share market to invest than ANZ shares.
