ANZ Group Holdings Ltd (ASX: ANZ) shares are up around 0.3% in early morning trade on Wednesday, and changing hands for $36.21 a piece.

After a tough start to the year, the bank shares are down around 0.5% for the year-to-date, but they’re still nearly 20% higher than 12 months ago.

Despite ongoing global volatility, interest rate uncertainty, and a slowdown in lending, the banking giant’s shares are now up 2.3% for the year-to-date and 39% above their trading levels this time last year. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up around 2% for the year-to-date, and roughly 3% higher than 12 months ago.

Brokers are relatively optimistic about ANZ shares for FY27. TradingView data shows that 7 of 16 analysts have a hold rating on the stock. Another six have a buy or strong buy rating while three have a sell or strong sell rating.

The average $34.91 target price, however, implies a potential 4% downside at the time of writing.

Regardless of where ANZ shares will be in 12 months time, there are a few other reasons I think the ASX bank shares are a screaming buy right now.

Here are three of them

1. Cost saving initiatives are working

As part of the bank’s half-year FY26 financial update, it confirmed it has now achieved 49% of its gross cost-savings target of $800 million for FY26.

ANZ has made significant progress reducing costs and simplifying operations, improving its cost-to-income ratio under its ANZ 2030 strategy. 

ANZ’s 2030 cost-saving strategy focuses on simplifying operations, eliminating duplication, and heavily reducing its physical and technological footprint. This includes job cuts, and integration of Suncorp Bank.

2. Earnings are stable and cash flow is growing 

As one of Australia’s major four banks, ANZ is generally considered to have stable earnings and predictable cash flow. The bank has a strong deposit base and a diversified portfolio that means it has defensive qualities.

In early May, the bank reported a 70% jump in its cash profit for the first half of FY26. Statutory profit was also up 62%, operating income was up 3%, and the bank’s operating expenses were 22% lower.

The news beat expectations, delighted investors and instilled some renewed confidence into the stock. ANZ shares spiked higher following the announcement.

The update also followed ANZ’s impressive first-quarter cash profit in February. At the time, it revealed $1.94 billion, up a huge 75% from the second-half average of FY25. Operating income was up 4% and cash return on tangible equity climbed 11.7% over the quarter.

3. The bank pays a great passive income

The bank’s strong performance means it is able to make a reliable and regular dividend payment to shareholders every six months, payable 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.

Earlier this month ANZ paid its shareholders an 83-cent per share interim dividend payment, franked at 75%. At the time of writing, this translates to a forward dividend yield of around 4.6%.

The 83-cent dividend is the same payout that investors have been receiving every six months since July 2024. Although the latest payout received an additional 5% franking (previously 70%).

Forecasts suggest that ANZ could 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 4.6% for each year.

That’s a decent passive income. It also puts ANZ at the front of the pack with the highest dividend yield offering among the big 4 major banks. 

The post 3 reasons why ANZ shares are a screaming buy right now appeared first on The Motley Fool Australia.

More reading

• What are experts tipping for the big four bank shares in the back half of 2026?
• How much passive income can I earn off a $50,000 portfolio?
• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold
• Here’s the earnings forecast out to 2027 for ANZ shares
• Here’s the dividend forecast out to 2027 for ANZ 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.

Commonwealth Bank of Australia (ASX: CBA) shares have historically been viewed as a top pick for passive income due to the stability and growth they have delivered to investors.

The banking landscape has changed significantly over the past 10 years, with increasing numbers of borrowers using mortgage brokers and a rising challenge from Macquarie Group Ltd (ASX: MQG).

On the mortgage broker challenger, CBA has a large majority of mortgage flow of borrowers coming through proprietary channels. In other words, it doesn’t rely on mortgage brokers as much compared to other banks like Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB).

However, Macquarie could put a brake on Commonwealth Bank’s earnings growth, along with the Federal budget taxation changes. Let’s see what it could take to earn $10,000 of passive income from the ASX bank share in FY27.

Projected dividend for FY27

The independent forecast on Commsec suggests the major ASX bank share could hike its annual dividend per CBA share by 1% in FY27 compared to the projected payout for FY26. That possible annual payment could be $5.15 per share for FY27.

At the time of writing, that translates into a grossed-up dividend yield of 4.3%, including franking credits, or 3% excluding the franking credits.

If I were a shareholder, any growth would be better than none. However, 1% growth isn’t even enough to offset typical inflation in a normal year. Of course, a forecast is not guaranteed to come true. Hopefully the ASX bank share can deliver a better outcome than what’s currently projected.

How many CBA shares do I need to make $10,000 of passive income?

Long-term shareholders can be happy with the upcoming potential dividends because they still represent significantly larger payouts than 20 or 30 years ago.

If CBA does indeed pay an annual dividend per share of $5.15 in FY27, then an investor would need to own 1,942 CBA shares to receive $10,000 of passive income. If we’re including franking credits as part of the income goal, then an investor would only need to own 1,360 CBA shares to receive the desired level of passive income.

Is this a good time to buy into Commonwealth Bank? Expert analysts don’t think so. According to Commsec, currently there are 14 sell ratings, two hold ratings and no buy ratings on the ASX bank share. There are a lot of other ASX shares that could be better buys.

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

More reading

• What are experts tipping for the big four bank shares in the back half of 2026?
• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold
• Are CBA shares still worth buying for the long term?
• How to build a successful ASX dividend portfolio
• What did the market look like 10 years ago? Here’s what’s changed for the ASX 200

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 recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Cochlear Ltd (ASX: COH) shares showed further signs of stabilising on Tuesday.

The hearing implant giant climbed 1.6% to $123.20, extending its gain over the past month to 16%.

That’s an impressive rebound after one of the ASX’s most dramatic share price collapses this year.

But let’s keep things in perspective. Despite the recent recovery, Cochlear shares are still down around 53% in 2026 and have shed almost 59% over the past 12 months.

So, is this the start of a genuine comeback, or merely a relief rally?

What went wrong?

April was one of the darkest months in Cochlear’s history.

The healthcare company shocked investors when it revealed demand for hearing implants across developed markets had weakened more than expected. At the same time, conflict in the Middle East disrupted shipments and led to order cancellations.

Management responded by dramatically lowering its profit expectations. Instead of forecasting underlying net profit of between $435 million and $460 million for FY26, Cochlear slashed guidance to just $290 million to $330 million.

Investors didn’t hang around to hear the rest. Cochlear shares plunged more than 40% in a single session as the market questioned whether one of the ASX’s most reliable growth stories had hit a wall.

Since then, investors have been asking one question: is this a temporary stumble or something more serious?

Why the investment case remains intact

Despite the earnings shock, Cochlear’s competitive position hasn’t fundamentally changed.

The company still commands roughly half of the global cochlear implant market, making it the clear industry leader. That position has been built through decades of product innovation, clinical research, and strong relationships with hospitals and surgeons around the world.

Those competitive advantages are exceptionally difficult for new entrants to replicate.

The long-term growth opportunity for Cochlear shares also remains compelling.

More than six million people across developed markets are estimated to be eligible for cochlear implants, yet only around 3% have received one. That leaves a substantial untapped market as diagnosis rates improve, awareness grows, and technology continues to advance.

In other words, the company’s long-term runway may be just as attractive today as it was before April’s profit warning.

What do the experts think?

Broker sentiment suggests caution rather than outright pessimism.

According to TradingView data, hold remains the dominant recommendation among analysts.

The average 12-month price target sits at $127.64, implying only around 4% upside from current levels. That suggests many brokers believe the recent rebound of Cochlear shares has already captured much of the near-term recovery.

Not everyone agrees. Six of the 18 analysts covering Cochlear have either a buy or strong buy recommendation, with the most optimistic forecasting the shares could rise another 38% over the next year.

On the other hand, two analysts recommend selling. The lowest target price stands at $100, implying downside of roughly 19%.

The post Cochlear shares have bounced 16%. Should you buy, hold, or sell now? appeared first on The Motley Fool Australia.

More reading

• 10 fantastic ASX shares to buy for FY27
• Cochlear shares are slipping again. Is the comeback already over?
• Cochlear shares are flying. Is this just the start?
• Here are the top 10 ASX 200 shares today
• ASX healthcare shares have jumped 21% since June. Can the recovery continue?

Motley Fool contributor Marc Van Dinther 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 Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.