Here’s the Westpac dividend forecast through to 2024

a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.

a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.

It has been another disappointing day of trade for the Westpac Banking Corp (ASX: WBC) share price.

Earlier today, the banking giant’s shares dropped to a new 52-week low of $19.26. While this is disappointing, it does mean that the dividend yield on offer with its shares is widening.

In light of this, let’s now take a look to see what is expected from the Westpac dividend in the coming years.

What are analysts forecasting for the Westpac dividend?

According to a note out of Goldman Sachs, as with the rest of the big four, its analysts are expecting the Westpac dividend to increase consistently through to FY 2024.

In case you missed it, in FY 2021 Australia’s oldest bank rewarded its shareholders with a $1.18 per share fully franked dividend.

Goldman expects this to be lifted to $1.23 per share in FY 2022. Based on the current Westpac share price, this implies a potential fully franked dividend yield of almost 6.4%.

Pleasingly, the broker then expects the bank to increase its dividend to a fully franked $1.29 per share in FY 2023. This equates to a very generous 6.7% yield for investors at today’s prices.

Finally, a 17 cents per share increase is forecast in FY 2024, bringing the Westpac dividend to $1.46 per share. If Goldman’s estimate proves accurate, this will mean a sizeable fully franked 7.5% dividend yield for investors.

Is the Westpac share price in the buy zone?

The note reveals that Goldman Sachs only has a neutral rating on the Westpac share price at the moment.

However, with a price target of $27.29, this still implies significant potential upside of approximately 41% for investors over the next 12 months. That’s not bad at all for a neutral rating!

The post Here’s the Westpac dividend forecast through to 2024 appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];[property] = defaultValue;

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s