If you're looking to bank an extra $5,000 a year in passive income, should you buy National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC), or Commonwealth Bank of Australia (ASX: CBA) shares?
All of the big four S&P/ASX 200 Index (ASX: XJO) bank stocks have a lengthy history of paying twice-yearly dividends. But there are some marked differences in both the yields you might expect, as well as the level of franking credits you may receive.
We'll look at the past year's share price moves and passive income payouts from CBA, NAB, ANZ, and Westpac shares below.
Just bear in mind that the yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of macroeconomic and company-specific factors.
With that in mind…
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Tapping the ASX 200 banks for $5,000 in passive income
Kicking off with the biggest ASX 200 bank stock, CBA shares closed on Monday trading for $154.97 each. That sees the CBA share price down 8.3% over the last 12 months.
On the passive income front, CBA paid (or shortly will pay) two fully-franked dividends totalling $5.05 a share over the full year. CBA shares trade ex-dividend on 19 August. Eligible stockholders will receive the final dividend on 29 September.
At Monday's closing price, then, CBA trades on a fully-franked dividend yield of 3.3%.
Moving on, NAB shares closed yesterday at $38.72 each, putting the NAB share price down 11.6% over 12 months.
Over the time, NAB paid two fully-franked dividends totalling $1.70 a share. This sees NAB trading on a fully-franked dividend yield of 4.4%.
Next up, ANZ shares ended Monday trading for $37.54. Unlike the other big four ASX 200 bank stocks, ANZ shares have gained 13.8% over the past 12 months. Over this period, ANZ paid two dividends (franked at 70% and 75%), totalling $1.66 a share.
At Monday's close, ANZ shares trade on a partly franked dividend yield of 4.4%.
And last up, Westpac shares closed on Monday at $34.53 each, which sees the ASX bank stock down 10.9% over 12 months.
As for that passive income, Westpac paid two fully-franked dividends over the full year, totalling $1.54 a share. Westpac stock trades on a fully-franked 4.5% trailing dividend yield.
Which ASX 200 bank stock to buy?
While all four ASX 200 banks offer reliable dividend payments, Westpac is well ahead of CBA and edges out ANZ and NAB shares with the best yield. And it provides full franking credits.
For $5,000 a year in passive income, based on the trailing yield, you'd need to buy 3,247 Westpac shares today.
