ANZ Group Holdings Ltd (ASX: ANZ) shares have climbed higher over the past month, despite headwinds from inflation figures and higher interest rates.

At the time of writing, the ASX bank shares are trading at $38.45. That’s around 3% higher than a month ago, and 6% higher for the year-to-date.

For context, the S&P/ASX 200 Index (ASX: XJO) has fallen 4% over the past month, and is around 0.2% lower for the year-to-date.

ANZ is Australia’s fourth-largest bank by market capitalisation. Its shares have outperformed the other three major banks over the past month and so far in 2026.

It’s also the big-four bank of choice among brokers.

Market Index data shows the experts are split between a buy and hold rating on ANZ shares. But the $36.05 average target price implies a downside of around 6%, after the latest rally.

Brokers have a hold rating on National Australia Bank Ltd (ASX: NAB) shares, but rate Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corporation Ltd (ASX: WBC) as a sell or strong sell.

It’s also one of the strongest passive income players.

What passive income does ANZ pay its shareholders?

As one of Australia’s big four major banks, ANZ is generally considered to have stable earnings and predictable cash flow. 

While bank stocks are usually considered cyclical, ANZ’s strong deposit base and diversified portfolio mean it is also relatively defensive in nature.

In mid-August, the bank reported cash profit of $1.9 billion, up 1% compared to the first-half quarterly average. While revenue was flat for the quarter, its net interest margin (NIM) edged up to 1.54% from 1.53%.

As of August, ANZ has achieved 73% of its gross cost-savings target of $800 million for FY26.

The bank’s strong performance enables it to make reliable, regular dividend payments to shareholders. It does this every six months, in July and December. 

It also offers both a dividend reinvestment plan (DRP) and a bonus option plan (BOP) as alternatives to receiving cash dividends on ANZ ordinary shares.

ANZ’s most recent dividend payment was an 83-cent per share interim dividend, franked at 75%, in July. 

The 83-cent dividend is the same payout that investors have received every six months since July 2024. However, the latest payout included an additional 5% franking credit (previously 70% or 65%).

Forecasts show that ANZ is expected to pay an annual dividend of $1.66 in FY26, and the same again in FY27. At the time of writing, that translates to a forward dividend yield of 4.3% for each year.

How many ANZ shares can I get with $10,000?

Using the $38.45 trading price at the time of writing, a $10,000 investment in ANZ shares would buy around 260 shares.

How much passive income can I earn from those shares in FY26 and FY27?

Assuming the bank pays the forecasted $1.66 dividend in FY26 and FY27, those 260 shares could earn around $431.60 in passive income each year.

The post If I invest $10,000 in ANZ shares, what passive income could I receive in FY27? appeared first on The Motley Fool Australia.

More reading

• Are ASX 200 bank stocks a buy in October?
• Commonwealth Bank vs BHP: Which ASX blue chip is the better buy in October?
• 5 leading ASX shares I’d buy and hold until 2040
• Commonwealth Bank vs ANZ: Which is better for passive income?
• Sell alert! Expert calls time on Corporate Travel and CBA shares

Motley Fool contributor Samantha Menzies 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.

AGL Energy vs Wesfarmers shares: Which is the better passive income pick?

Everyday investors looking to earn regular passive income from the sharemarket often find themselves tossing up between established dividend payers like AGL Energy Ltd (ASX: AGL) and Wesfarmers Ltd (ASX: WES). Both have long track records, significant positions in the Australian economy, and the kind of brand recognition that brings a feeling of reliability. But when it comes to dividend income, not all blue chips are equal. Here’s how I see the choice between AGL Energy and Wesfarmers shares stacking up now.

The case for AGL Energy

AGL Energy is one of Australia’s oldest energy companies, tracing its history back to Sydney’s first gas lamps. Today it’s a key player in both the wholesale and retail gas and electricity markets, with operations spanning coal and gas generation as well as renewables like wind and hydro. According to its most recent company profile, AGL scrapped a planned demerger in 2022 after strong investor pushback—keeping its business unified at a time of big change for Australian energy.

Looking at the numbers, a few things stand out:

• Dividend yield is a chunky 6.16%, fully franked, which is among the highest for large ASX shares.
• The price-to-earnings (P/E) ratio sits at just 7.24, making it look relatively undemanding compared to many other blue chips.
• Market cap is $5.42 billion—small relative to Wesfarmers, but still substantial.

Recent dividends have returned to being fully franked after a run of unfranked payouts in 2023 and 2024, which is good news for investors seeking the full tax-effective benefits. However, the company’s year-to-date (YTD) return is down -7.4%, showing share price headwinds—possibly reflecting market caution around energy sector risks and transition costs.

The case for Wesfarmers

Wesfarmers is a true ASX giant, with an $84.37 billion market cap. It’s best known for owning everyday retail brands like Bunnings, Kmart, Officeworks, and Priceline, but also has interests in chemicals, fertilisers, and energy. After picking up Australian Pharmaceutical Industries, Wesfarmers now has a presence in the pharmacy sector too. Its scale and diversity make it a bedrock of many Aussie portfolios.

A few key fundamentals catch the eye:

• Dividend yield is 3.02%, fully franked, with a long history of consistent payouts (including occasional specials).
• The P/E ratio is 29.04—much higher than AGL’s.
• Earnings per share (EPS) is 2.534, significantly ahead of AGL’s 1.122.

What stands out is the stability and reliability of Wesfarmers’ dividends, as seen in its lengthy dividend record, and its presence in several consumer and industrial sectors. But with shares down -6.5% YTD, it’s faced its own share of market volatility lately.

Valuation comparison

With both companies offering fully franked dividends and a long-listed history, the core differences come down to yield, valuation, and market cap.

Notably, AGL Energy sports a much lower P/E ratio than Wesfarmers. But sector differences matter—energy utility shares usually trade on lower multiples than diversified industrials like Wesfarmers. The dividend yield is double at AGL compared to Wesfarmers, which could appeal more to pure income seekers.

Recent share price performance

Comparing share price action up to 29 September:

• AGL Energy closed at $8.06, slightly down for the day and negative over the year with a -7.4% YTD return.
• Wesfarmers ended at $74.35, up 1.03% on the day, but still down -6.5% YTD.

So both shares are underwater year to date as of this date, reflecting broader weakness in their sectors or the market. Neither has displayed obvious positive momentum in 2026 to date.

Which is the better buy?

If my primary aim is regular passive income, I’m leaning toward AGL Energy at current prices. Its 6.16% fully franked yield is over double Wesfarmers’, and the low P/E suggests the market isn’t pricing in much optimism—which can sometimes mean upside if conditions improve. The recent return to fully franked dividends is a nice bonus for Australian income investors, especially given the substantial payout in relation to its share price.

Wesfarmers is a higher quality, more diversified business, no question—it’s likely more resilient, with a much larger market cap and exposure to essential consumer sectors. But with its share price still carrying a high P/E and a yield around 3%, in strict income terms, I’d pick AGL for now.

Of course, both have risk factors: AGL operates in a volatile, transitioning energy sector, while Wesfarmers’ premium multiples mean less margin for error if earnings disappoint. But for investors chasing the biggest stream of franked dividends right now, my pick would be AGL Energy.

The post AGL Energy vs Wesfarmers: Which share delivers better passive income? appeared first on The Motley Fool Australia.

More reading

• How much could the Wesfarmers share price rise in the next year?
• How many Wesfarmers shares do I need to buy for $8,000 of passive income?
• Where I’d invest in ASX shares after the recent RBA rate rise
• How much is needed in superannuation to target a $10,000 monthly passive income?
• 2 strong Australian stocks to buy now with $9,000

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 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. 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.

It was a calamitous and brutal day for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Thursday. After what had been a relatively pleasant week thus far, investors lost confidence today, and fast.

The ASX 200 opened deep in red territory, and just kept on falling. By the time the markets closed, the index had shed a nasty 1.99% and was left at just 8,614.4 points.

This awful day for the Australian markets came after a more nuanced night up on the US exchanges.

The Dow Jones Industrial Average Index (DJX: .DJI) was also hit hard last night, dropping 0.86%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) went the other way, recording a rise of 0.24%.

But let’s grit our teeth and get back to ASX shares now for a post-mortem of how the various ASX sectors coped with this Thursday’s tough trading conditions.

Winners and losers

No corners of the market were safe from today’s selling.

The best place to be was in tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) was relatively unscathed, ‘only’ slipping by 0.62%.

Communications stocks fared decently (at least by comparison) too, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) sliding 0.85%.

Utilities shares came next. The S&P/ASX 200 Utilities Index (ASX: XUJ) dipped 0.91% today.

Consumer discretionary stocks suffered triple-digit losses, illustrated by the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)’s 1.18% dive.

Industrial shares saw stepped-up selling pressure, though. The S&P/ASX 200 Industrials Index (ASX: XNJ) sank a horrid 1.75% this session.

Mining stocks were worse again, with the S&P/ASX 200 Materials Index (ASX: XMJ) retreating 1.88%.

Gold shares were no safe haven. The All Ordinaries Gold Index (ASX: XGD) was sent home 2.09% lighter.

Financial stocks found themselves in a similar boat, as you can tell by the S&P/ASX 200 Financials Index (ASX: XFJ)’s 2.13% slump.

Healthcare shares didn’t exactly live up to their name this Thursday. The S&P/ASX 200 Healthcare Index (ASX: XHJ) ended up sinking 2.49%.

Real estate investment trusts (REITs) reversed the goodwill we saw yesterday, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) receiving a 2.51% cut.

Consumer staples stocks did not hold their value. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) crateted a nasty 2.55% by the closing bell.

Finally, energy shares took the brunt of the selling this session, evidenced by the S&P/ASX 200 Energy Index (ASX: XEJ)’s 3.03% plunge.

Top 10 ASX 200 shares countdown

Coming out on top of quite an uncompetitive field today was data company Data #3 Ltd (ASX: DTL). Data#3 shares rocketed 13.68% higher this session to close at $12.63 each.

This massive surge was prompted by a well-received trading update this afternoon.

Here’s how the other top ASX stocks tied up at the dock:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why is the ASX down 176 points today?
• Which were the best-performing ASX 200 shares in September?
• Codan vs Xero: Which ASX tech stock is the better buy in October?
• Should I buy DroneShield shares after its big US news?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen 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 DroneShield, Hub24, and Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Data#3 and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.