ANZ Group vs AMP shares: Which blue chip is the better buy this month?

When it comes to big names on the ASX, few stand out as much as ANZ Group Holdings Ltd (ASX: ANZ) and AMP Ltd (ASX: AMP). Both are pillars of the Australian financial sector, but they play very different games—ANZ as one of the nation’s “big four” banks, and AMP as a diversified wealth manager with a long history. With changing markets, improved performance, and new strategies underway, plenty of investors are weighing up ANZ Group vs AMP shares right now. So, which blue chip shapes up as the better buy this month?

The case for ANZ

ANZ is one of Australia’s giant banks—part of the “big four,” with a strong foothold in retail, business, and institutional banking across nearly 30 markets worldwide. While its roots stretch back decades, ANZ is anything but stale; it’s continued evolving, adapting its product offering for millions of customers across Australia, New Zealand, Asia-Pacific, and beyond.

What stands out for ANZ right now is its solid dividend yield of 4.33%, which, along with a sizeable market cap of $112.16 billion, underscores its status as a blue-chip mainstay. According to its company profile, ANZ caters to a customer base of more than 8.5 million people globally, though keep in mind this number may have shifted since. ANZ’s franking on its dividends currently sits at 75%, which is a welcome boost for many Aussie investors. The bank’s P/E ratio of 19.42 looks reasonable when viewed against its strong position in the market. Year to date, shares are up 7.7%, suggesting a steady performance in 2026 so far.

The case for AMP

AMP has been around since 1849, forging a reputation in superannuation, investment management, life insurance, and a select set of banking services. While the company has faced its share of public challenges, recent years have seen AMP redefine itself, offloading its institutional funds management business and steering its financial advice arm into a fresh joint venture. AMP’s story is about rebuilding and repositioning for a new era.

From a numbers perspective, AMP offers a market cap of $6.27 billion—much smaller than ANZ’s but still sizeable by most standards. Its P/E ratio is 34.86, reflecting the market’s expectation of future growth (or possibly a premium for turnaround potential). The current dividend yield is 1.94% with 20% franking, noticeably lower than ANZ’s yield and franking. However, the real eye-catcher is AMP’s year-to-date return: a whopping 44.5% as of 30 September 2026, showing very strong share price momentum this year.

Valuation comparison

When it comes to straight-up fundamentals, there are some sizeable differences:

Metric	ANZ	AMP
Market Cap	$112.16 billion	$6.27 billion
P/E Ratio	19.42	34.86
Dividend Yield	4.33%	1.94%
Dividend per Share	$1.66	$0.05
Franking	75%	20%
Earnings per Share (EPS)	1.973	0.074

ANZ trades on a lower P/E ratio than AMP, meaning investors are paying less for each dollar of earnings. It also offers more than double the dividend yield, with higher franking on those payouts. AMP’s valuation may reflect turnaround hopes or perceived growth from its new structure, but right now it’s considerably more expensive on a P/E basis.

Note: AMP’s reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why these numbers may appear inconsistent.

Recent share price momentum

Comparing recent share price performance up to 30 September 2026:

• ANZ closed at $38.31 on 30 September 2026, delivering a year-to-date return of 7.7%. In the last week of available data, it’s seen mild ups and downs, but trends sideways overall after some earlier strength in the month.
• AMP closed at $2.60 on 30 September 2026, riding an impressive year-to-date performance of 44.5%. Its past week shows more short-term gains and positive sentiment from investors.

Which is the better buy?

Both ANZ and AMP bring something distinct to the table—ANZ the stable, high-yield blue-chip; AMP the smaller, turnaround financial with momentum on its side. Right now, though, I think the case is stronger for ANZ.

The reasons? ANZ offers a much higher, better-franked dividend, trades at a far more accessible P/E ratio considering the size and strength of its franchise, and provides a level of predictability that AMP, still working through strategic change and capital structure tweaks, cannot quite match. AMP’s near-45% run-up this year is dazzling, but that sort of momentum can cool quickly if the turnaround doesn’t deliver. For investors chasing reliable yield and a dominant market position, my pick would be ANZ this month.

The post ANZ vs AMP: Which ASX blue chip is the better buy this month? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Owning Coles Group Ltd (ASX: COL) shares could be a wonderful pick for dividend income in the years ahead because of their stability and growth.

Coles is best known for its supermarket business, the second-largest operator in Australia. It also has a liquor division which includes Coles Liquor and Liquorland, a 50% stake in Flybuys, and it offers financial products like insurance, credit cards and personal loans.

Given that food is a life essential, I think Coles is one of the leading ASX defensive shares in Australia. Australia’s steady population growth is a key driver of demand for Coles’ products.

I think Coles is one of the leading ASX blue-chip shares because of its track record of growing its payout and delivering a solid dividend yield.

Let’s take a look what could happen with a $6,000 investment in Coles shares.

Strength of the dividend

Coles spun off from Wesfarmers Ltd (ASX: WES) more than seven years ago. Since then, the supermarket business has increased its annual dividend every year. None of Australia’s largest businesses can say that they have done the same – COVID-19 impacts, lower commodity prices, or inflation led to dividend cuts this decade for many of the large ASX shares.

Coles has kept things consistent, and shareholders’ bank accounts have benefited.

The ASX blue-chip share generated underlying net profit after tax (NPAT) growth of 13.7% to $1.25 billion in FY26, helping fund a 13% increase in the annual dividend per share to 78 cents per share.

At the time of writing, the FY26 payout translates into a grossed-up dividend yield of 4.8%, including franking credits. But, that’s the past. Any investors buying Coles shares will receive the 2027 financial year dividend next, so we should focus on that.

Excitingly, the payout is forecast to increase again in FY27. According to CommSec’s projection, the ASX blue-chip share is expected to pay an annual dividend of 83.5 cents per share. That would be year-over-year growth of 7%, much stronger than inflation.

That projected payout for FY27 would also represent a forward grossed-up dividend yield of 5.2%, including franking credits.

$6,000 investment in Coles shares

If someone were to buy $6,000 of Coles shares today, they’d be able to buy 260 Coles shares.

That could mean dividend cash of $217.10 from FY27 and grossed-up dividend income of $310.14 including franking credits.

If I were looking for dividend income from an ASX blue-chip share, Coles would be a strong contender. But it’s not the only business I’d look at today for returns.

The post If I buy $6,000 of Coles shares, how much dividend income will I receive? 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 positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Capricorn Metals Ltd (ASX: CMM) share price is in focus after the company reported gold production of 31,218 ounces for the September 2026 quarter, in line with guidance, and announced the completion of the Karlawinda Expansion Project on schedule.

What did Capricorn Metals report?

• Gold production for Q1 FY27: 31,218 ounces (vs 30,437 ounces in Q4 FY26)
• Karlawinda Expansion Project completed on time and within budget
• Cash and gold on hand at 30 September 2026: $535.0 million (up from $507.0 million at 30 June)
• Underlying cash build for the quarter: $62.2 million, prior to $42.7 million capital expenditure
• FY27 production guidance of 137,000–147,000 ounces at AISC of $1,900–$2,100 per ounce reaffirmed

What else do investors need to know?

Mining activities continued at the expanded rate across the Karlawinda Gold Project, allowing for both strong gold output and the seamless integration of the new processing facilities. The commissioning of the expanded plant has increased processing capacity to 6.5 million tonnes per annum, with expected annual gold production now at 150,000 ounces going forward.

Development is also progressing at Capricorn’s Mt Gibson Gold Project. During the quarter, $2.1 million was spent mainly on procurement and contract set-up, positioning the company well for a quick construction start after regulatory permits are received. Federal approvals have been secured and key state environmental assessments are underway.

What’s next for Capricorn Metals?

Capricorn expects to maintain steady production in line with its guidance for FY27, as the benefits of the Karlawinda Expansion Project begin to flow through. The company aims to lift output to 150,000 ounces per year at the Karlawinda operations, while advancing the Mt Gibson Gold Project, pending further permitting decisions.

Investors will be watching for the release of more detailed operational and cost figures in Capricorn’s full quarterly report later in October, as well as regulatory progress and timelines at Mt Gibson.

Capricorn Metals share price snapshot

Over the past 12 months, Capricorn Metals shares have risen 5%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has fallen 3% over the same period.

View Original Announcement

The post Capricorn Metals delivers solid Q1 gold output and expansion milestone appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.