Here’s the ANZ dividend forecast through to 2025

One of the more attractive options for income investors on the Australian share market right now is the ANZ Group Holdings Ltd (ASX: ANZ) dividend.

For example, in FY 2022, the banking giant rewarded its shareholders with fully franked dividends totalling $1.46 per share.

Based on the current ANZ share price of $24.21, this represents a dividend yield of 6% for investors, which well-above the market average.

The question on the lips of investors now is where next for the ANZ dividend?

Where next for the ANZ dividend?

The good news is that one leading broker believes it is onwards and upwards for the ANZ dividend from here.

According to a recent note out of Citi, its analysts are expecting the banking giant to increase its dividend to $1.66 per share in FY 2023.

If this forecast is accurate, it will mean a very attractive fully franked 6.85% dividend yield for investors.

But it gets better. Citi expects another more modest increase in the bank’s dividend to $1.68 per share in FY 2024. This would mean a fully franked 6.9% dividend yield for that financial year.

Finally, while Citi isn’t expecting the ANZ dividend to grow in FY 2025, its forecast for a flat dividend of $1.68 per share will mean another sizeable 6.9% yield.

Should you buy shares?

It isn’t just big yields that the broker is expecting. It also sees scope for the ANZ share price to rise meaningfully from current levels.

Citi has a buy rating and $27.25 price target on its shares, which implies potential upside of 12.5% over the next 12 months.

The broker is bullish due to its belief that ANZ is well-placed due to its institutional business. It said:

ANZ remains our top pick in the sector, and we expect the lending momentum, particularly in institutional, to continue to differentiate vs peers.

The post Here’s the ANZ dividend forecast through to 2025 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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