If you invest $10,000 in ANZ shares here’s how much passive income you’ll earn

Woman holding $50 notes and smiling.Woman holding $50 notes and smiling.

Investors on the lookout for historically reliable passive income may wish to revisit Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares.

On the capital gains front, ANZ shares are up 3.4% since the opening bell on 3 January. However, the S&P/ASX 200 Index (ASX: XJO) bank stock remains down 7.8% over the past full year.

Of course, that’s not including the two fully franked dividends ANZ delivered over those 12 months.

Which brings us to how much passive income you could earn if you invested $10,000 in ANZ shares today.

How much passive income could ANZ shares provide?

Before diving into the answer, it’s important to note that some of the dividend yields we discuss here are trailing yields. Meaning they’re based on the dividend payments already made over the prior 12 months.

Now, with the exception of the pandemic-addled year of 2020, the passive income delivered by ANZ shares has been quite consistent. But future dividend payments could be higher or lower than what was paid over the year just past.

With that said, ANZ paid a final dividend of 74 cents per share on 15 December.

When the big four bank delivered its half-year results on Friday, the board declared an interim dividend of 81 cents per share. That’s up 9.5% from last year’s interim dividend, driven by all-time high cash earnings. Cash earnings for the six months were up 12% to $3.82 billion.

ANZ shares trade ex-dividend next Monday. Meaning investors who want to score the 81 cents per share in passive income need to own the bank stock by market close this Friday, 12 May to be eligible. That fully franked dividend will hit shareholders’ bank accounts on 3 July.

All told then, ANZ has paid (or declared) a total of $1.55 per share in dividends over a year.

At Friday’s market close share price of $23.80, that works out to a yield of 6.5%, with potential tax benefits.

Meaning that for a $10,000 investment, ANZ shares can offer $651 a year in convenient passive income.

The post If you invest $10,000 in ANZ shares here’s how much passive income you’ll earn appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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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