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ANZ Group vs AMP shares: Which blue chip is the better buy this month?
When it comes to big names on the ASX, few stand out as much as ANZ Group Holdings Ltd (ASX: ANZ) and AMP Ltd (ASX: AMP). Both are pillars of the Australian financial sector, but they play very different games—ANZ as one of the nation's "big four" banks, and AMP as a diversified wealth manager with a long history. With changing markets, improved performance, and new strategies underway, plenty of investors are weighing up ANZ Group vs AMP shares right now. So, which blue chip shapes up as the better buy this month?
The case for ANZ
ANZ is one of Australia's giant banks—part of the "big four," with a strong foothold in retail, business, and institutional banking across nearly 30 markets worldwide. While its roots stretch back decades, ANZ is anything but stale; it's continued evolving, adapting its product offering for millions of customers across Australia, New Zealand, Asia-Pacific, and beyond.
What stands out for ANZ right now is its solid dividend yield of 4.33%, which, along with a sizeable market cap of $112.16 billion, underscores its status as a blue-chip mainstay. According to its company profile, ANZ caters to a customer base of more than 8.5 million people globally, though keep in mind this number may have shifted since. ANZ's franking on its dividends currently sits at 75%, which is a welcome boost for many Aussie investors. The bank's P/E ratio of 19.42 looks reasonable when viewed against its strong position in the market. Year to date, shares are up 7.7%, suggesting a steady performance in 2026 so far.
The case for AMP
AMP has been around since 1849, forging a reputation in superannuation, investment management, life insurance, and a select set of banking services. While the company has faced its share of public challenges, recent years have seen AMP redefine itself, offloading its institutional funds management business and steering its financial advice arm into a fresh joint venture. AMP's story is about rebuilding and repositioning for a new era.
From a numbers perspective, AMP offers a market cap of $6.27 billion—much smaller than ANZ's but still sizeable by most standards. Its P/E ratio is 34.86, reflecting the market's expectation of future growth (or possibly a premium for turnaround potential). The current dividend yield is 1.94% with 20% franking, noticeably lower than ANZ's yield and franking. However, the real eye-catcher is AMP's year-to-date return: a whopping 44.5% as of 30 September 2026, showing very strong share price momentum this year.
Valuation comparison
When it comes to straight-up fundamentals, there are some sizeable differences:
| Metric | ANZ | AMP |
|---|---|---|
| Market Cap | $112.16 billion | $6.27 billion |
| P/E Ratio | 19.42 | 34.86 |
| Dividend Yield | 4.33% | 1.94% |
| Dividend per Share | $1.66 | $0.05 |
| Franking | 75% | 20% |
| Earnings per Share (EPS) | 1.973 | 0.074 |
ANZ trades on a lower P/E ratio than AMP, meaning investors are paying less for each dollar of earnings. It also offers more than double the dividend yield, with higher franking on those payouts. AMP's valuation may reflect turnaround hopes or perceived growth from its new structure, but right now it's considerably more expensive on a P/E basis.
Note: AMP's reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why these numbers may appear inconsistent.
Recent share price momentum
Comparing recent share price performance up to 30 September 2026:
- ANZ closed at $38.31 on 30 September 2026, delivering a year-to-date return of 7.7%. In the last week of available data, it's seen mild ups and downs, but trends sideways overall after some earlier strength in the month.
- AMP closed at $2.60 on 30 September 2026, riding an impressive year-to-date performance of 44.5%. Its past week shows more short-term gains and positive sentiment from investors.
Which is the better buy?
Both ANZ and AMP bring something distinct to the table—ANZ the stable, high-yield blue-chip; AMP the smaller, turnaround financial with momentum on its side. Right now, though, I think the case is stronger for ANZ.
The reasons? ANZ offers a much higher, better-franked dividend, trades at a far more accessible P/E ratio considering the size and strength of its franchise, and provides a level of predictability that AMP, still working through strategic change and capital structure tweaks, cannot quite match. AMP's near-45% run-up this year is dazzling, but that sort of momentum can cool quickly if the turnaround doesn't deliver. For investors chasing reliable yield and a dominant market position, my pick would be ANZ this month.
