Everything you need to know about the 81 cents ANZ dividend

Woman looking at her smartphone and analysing share price.Woman looking at her smartphone and analysing share price.

The ANZ Group Holdings Ltd (ASX: ANZ) dividend that investors are going to receive for the first half of FY23 has just been announced with the HY23 report. The ANZ share price dropped around 2% in early reaction but picked up afterwards, rising 0.5% at $23.58.

ANZ’s half-year result is for the period ending 31 March 2023.

The ASX bank share saw profit growth as it benefited from the higher interest rate environment. ANZ reported that cash profit increased 12% to $3.8 billion.

ANZ dividend

ANZ reported that, compared to the second half of FY22, cash earnings per share (EPS) went up 7% to 127.6 cents. Statutory net profit after tax (NPAT) dropped by 1% to $3.55 billion.

This enabled the ANZ board to deliver an increase of the dividend by 9.5% to 81 cents.

The ex-dividend date for the dividend is 15 May 2023, so investors need to own shares before this date to be entitled to the dividend. The payment date is 3 July 2023.

ANZ said that its dividend payout ratio was 68.6%.

The board said that it considered the 81 cents per share payout “appropriate” for the current operating conditions.

The ASX bank share noted that its common equity tier 1 (CET1) ratio was 13.2% for the period, an increase of 89 basis points (0.89%) since September 2022. But, on a ‘pro forma basis’, including the proposed acquisition of the banking division of Suncorp Group Ltd (ASX: SUN) and adjusted for the surplus capital in the non-operating holding company, ANZ’s capital ratio was 12.1%.

What’s the outlook?

ANZ’s boss Shayne Elliot made a number of comments about the outlook. Keep in mind that ANZ’s earnings and trajectory could have a major influence on the ANZ dividend in future periods. Elliot said:

The next six months will be more difficult than the last. Competition in retail banking is as intense as it has ever been, both in Australia and New Zealand. We understand that sustained higher inflation and interest rates create further challenges for some households and businesses across the economy. While the number of ANZ customers in difficulty remains low, we stand ready to help in these potentially challenging times.

We enter the next half with a business structure that brings the benefits of geographic and product diversification. We have a robust capital position, credit loss provisions higher than any other time pre-COVID, a strong and diverse deposit base and a track-record of execution. We are seeing continued momentum and high employee engagement across all four divisions, each with a clear strategy and a funded roadmap for growth.

As the world is changing rapidly, ANZ is well placed to deploy our people and capital to help those facing challenges, but also support those looking for opportunities.

What is the ANZ dividend yield?

Based on the last two announced dividends of 81 cents per share and 74 cents per share, that’s a total of $1.55 per share. That’s a fully franked dividend yield of 6.75% and a 9.6% grossed-up dividend yield.

But, if the next ANZ dividend is increased with the result in six months then the dividend yield will be even bigger for the next 12 months.

The post Everything you need to know about the 81 cents ANZ dividend appeared first on The Motley Fool Australia.

Should you invest $1,000 in Australia And New Zealand Banking Group right now?

Before you consider Australia And New Zealand Banking Group, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Australia And New Zealand Banking Group wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of April 3 2023

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

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

Motley Fool contributor Tristan Harrison 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.

from The Motley Fool Australia https://ift.tt/r9yc7EG

Leave a Reply

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

WordPress.com Logo

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

Facebook photo

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

Connecting to %s