How many ANZ shares do I need to buy for $10,000 of passive income?

Owning ANZ Group Holdings Ltd (ASX: ANZ) shares has been a typical ASX blue-chip share pick for investors who want passive income.

The ASX bank share usually trades on a relatively low price/earnings (P/E) ratio valuation and has a fairly generous dividend payout ratio.

ANZ has a lot of competition in the banking space. On the ASX alone there’s a long list of names competing with ANZ including Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), Macquarie Group Ltd (ASX: MQG), Bank of Queensland Ltd (ASX: BOQ), Bendigo and Adelaide Bank Ltd (ASX: BEN), MyState Ltd (ASX: MYS) and Pepper Money Ltd (ASX: PPM).

Despite that, the bank still makes billions of dollars of profit each year, which funds the company’s solid dividend.

For an investor who wants $10,000 of annual passive income, let’s take a look at what level of passive income ANZ is projected to pay in FY26.

ASX bank share dividend forecast

ANZ’s financial year runs to September, so we’re close to three-quarters of the way through the 2026 financial year. It’ll be a few months until we find out about the annual result and what the profit figures could be.

Analysts have forecast what the ASX bank share may be able to deliver.

According to the projection on Commsec, the ASX bank share could pay an annual dividend per ANZ share of $1.68 in FY26.

At the time of writing, this translates into a dividend yield of 4.8%, excluding franking credits.

That means, to generate $10,000 of annual passive income from ANZ in FY26, an investors would need 5,953 ANZ shares to receive that much in dividends.

Pleasingly for shareholders, the bank is projected to see a rise in its dividend per share of 2.4% in FY27 to $1.72. If we focus on this forecast amount, an investor would only need 5,814 ANZ shares for $10,000 of annual passive income, excluding franking credits.

Is this a good time to invest in ANZ shares?

When there’s a lot of competitors in an industry, it’s normal to see profit margins being challenged. Given how quickly Macquarie is growing, it’s possible that ANZ’s market share could decline in the coming years, unless it can change the trend.

According to Commsec’s collation of analyst opinions on the business, there are currently six buy ratings, eight hold ratings and two sell ratings.

It seems analysts are a bit more positive than negative on the ASX bank share right now, but I think there are better opportunities out there today that could grow earnings more in the long-term.

The post How many ANZ shares do I need to buy for $10,000 of passive income? appeared first on The Motley Fool Australia.

More reading

• Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks
• Why has the ASX 200 given up its early rebound today?
• What does the RBA decision mean for the big four bank shares?
• 3 excellent ASX dividend shares for income investors to buy now
• What are the big four banks expecting at tomorrow’s RBA cash rate meeting?

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.