ANZ Group Holdings Ltd (ASX: ANZ) shares have climbed higher over the past month, despite headwinds from inflation figures and higher interest rates.
At the time of writing, the ASX bank shares are trading at $38.45. That's around 3% higher than a month ago, and 6% higher for the year-to-date.
For context, the S&P/ASX 200 Index (ASX: XJO) has fallen 4% over the past month, and is around 0.2% lower for the year-to-date.
ANZ is Australia's fourth-largest bank by market capitalisation. Its shares have outperformed the other three major banks over the past month and so far in 2026.
It's also the big-four bank of choice among brokers.
Market Index data shows the experts are split between a buy and hold rating on ANZ shares. But the $36.05 average target price implies a downside of around 6%, after the latest rally.
Brokers have a hold rating on National Australia Bank Ltd (ASX: NAB) shares, but rate Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corporation Ltd (ASX: WBC) as a sell or strong sell.
It's also one of the strongest passive income players.
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What passive income does ANZ pay its shareholders?
As one of Australia's big four major banks, ANZ is generally considered to have stable earnings and predictable cash flow.
While bank stocks are usually considered cyclical, ANZ's strong deposit base and diversified portfolio mean it is also relatively defensive in nature.
In mid-August, the bank reported cash profit of $1.9 billion, up 1% compared to the first-half quarterly average. While revenue was flat for the quarter, its net interest margin (NIM) edged up to 1.54% from 1.53%.
As of August, ANZ has achieved 73% of its gross cost-savings target of $800 million for FY26.
The bank's strong performance enables it to make reliable, regular dividend payments to shareholders. It does this every six months, in July and December.
It also offers both a dividend reinvestment plan (DRP) and a bonus option plan (BOP) as alternatives to receiving cash dividends on ANZ ordinary shares.
ANZ's most recent dividend payment was an 83-cent per share interim dividend, franked at 75%, in July.
The 83-cent dividend is the same payout that investors have received every six months since July 2024. However, the latest payout included an additional 5% franking credit (previously 70% or 65%).
Forecasts show that ANZ is expected to pay an annual dividend of $1.66 in FY26, and the same again in FY27. At the time of writing, that translates to a forward dividend yield of 4.3% for each year.
How many ANZ shares can I get with $10,000?
Using the $38.45 trading price at the time of writing, a $10,000 investment in ANZ shares would buy around 260 shares.
How much passive income can I earn from those shares in FY26 and FY27?
Assuming the bank pays the forecasted $1.66 dividend in FY26 and FY27, those 260 shares could earn around $431.60 in passive income each year.
