No doubt, some market watchers consider S&P/ASX 200 Index (ASX: XJO) bank shares a boring investment. But what if I told you one ASX 200 bank share currently boasts a dividend yield of more than 7%.
Thatâs right, one of Australiaâs biggest banks offers a passive income-to-share price ratio many mining stocks would envy.
So, which S&P/ASX 200 Financials Index (ASX: XFJ) giant is behind the burgeoning dividend stat? Keep reading to find out.
The highest dividend yield of all ASX 200 bank shares is….
ASX 200 investors would be hard-pressed to avoid bank stocks. Indeed, the financial sector accounts for nearly a third of the entire indexâs value.
But itâs not $164 billion financial giant Commonwealth Bank of Australia (ASX: CBA) that offers the highest dividend yield. Nor is it one of its big four peers.
That crown goes to regional competitor Bank of Queensland Ltd (ASX: BOQ). Take a look for yourself:
| ASX 200 bank | Dividends declared in the last year | Share price | Trailing yield |
| Bank of Queensland | 46 cents | $6.52 | 7% |
| ANZ Group Holdings Ltd (ASX: ANZ) | $1.46 | $22.77 | 6.4% |
| Bendigo and Adelaide Bank Ltd (ASX: BEN) | 55.5 cents | $8.94 | 6.2% |
| Westpac Banking Corp (ASX: WBC) | $1.25 | $21.41 | 5.8% |
| National Australia Bank Ltd (ASX: NAB) | $1.51 | $27.80 | 5.4% |
| Commonwealth Bank | $4.20 | $96.95 | 4.3% |
| Macquarie Group Ltd (ASX: MQG) | $6.50 | $171.24 | 3.8% |
So there you have it, folks. The dividend yield on offer from Bank of Queensland shares at the time of writing means a $10,000 investment could herald $700 of annual passive income. Thatâs certainly nothing to scoff at!
Coming up in its dust is ANZ at 6.4%, while fellow regional player Bendigo Bank offers a 6.2% dividend yield.
But there might be more to the Bank of Queenslandâs apparent dividend superiority.
The stock has underperformed all its ASX 200 banking peers’ over the last 12 months, falling 23% in that time. That’s compared to the ASX 200’s 5% tumble (see below) and the financial sector’s 11% slump.
That fall means Bank of Queensland’s shares now appear to be priced cheaper in comparison to dividends than they otherwise may have.
The post Want to bank more passive income? This ASX 200 bank shareâs dividend yield outstrips all others appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper 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 positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool Australia has recommended Westpac Banking. 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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