Owning ANZ Group Holdings Ltd (ASX: ANZ) shares has been helpful for investors focused on passive income. Payouts could continue to be attractive in the coming years, meaning a $20,000 investment unlocks substantial dividend income.
ASX bank shares typically trade at a relatively low price-to-earnings (P/E) ratio compared to other sectors, which helps provide a higher dividend yield. Banks like ANZ also usually opt for a relatively generous dividend payout ratio compared to ASX growth shares, resulting in a more attractive dividend yield.
While I’m not expecting strong earnings from ANZ, let’s examine the potential of the dividend income.
Payout potential of ANZ shares
In the recent FY25 result, ANZ reported that its annual dividend per share was maintained at $1.66. While growth is preferred, maintaining the dividend is a solid outcome when the cash net profit falls 14% to $5.8 billion.
How big could the payout be in the coming years? Let’s take a look at what analysts are forecasting for the ASX bank share.
According to the forecasts on CMC Markets, the bank could pay an annual dividend of $1.66 per share in the 2026 financial year. At the time of writing, this translates to a dividend yield of 4.75% without franking credits and 6.1% including franking credits.
If someone were to invest $20,000 into ANZ shares, that could lead to around $950 of cash payments in FY26 and approximately $1,220, including the franking credits.
However, there could be dividend growth in the following year for ANZ share owners. In FY27, the business is predicted to increase its annual dividend per share to $1.69. That would represent a year-over-year increase of 1.8%.
The forecast on CMC Markets suggests the ASX bank share could deliver a cash dividend yield of 4.8% in FY26 and a grossed-up dividend yield of 6.2%, including the franking credits.
Is the ASX bank share a buy?
The ANZ share price has dipped around 10% since 12 November 2025, at the time of writing, which is a sizeable drop for a business of ANZ’s scale. It represents a better value than it did earlier in November.
According to Commsec, there are currently 16 analyst recommendations on the business, with four ‘sell’ ratings, eight ‘hold’ ratings, and four ‘buy’ ratings. Overall, analysts appear to be mixed on the bank, with a “hold” being the most popular rating.
It doesn’t seem like a great time to invest in ANZ shares; there are other opportunities around.
The post $20,000 of ANZ shares can net me a $1,220 passive income! appeared first on The Motley Fool Australia.
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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.
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