Owning ANZ Group Holdings Ltd (ASX: ANZ) shares usually means getting a good dividend yield due to the bank’s typically rewarding payout.

As an ASX bank share, ANZ typically has a relatively low price/earnings (P/E) ratio and a fairly generous dividend payout ratio. This combination leads to a solid yield.

The bank is predicted to continue to deliver pleasing payouts for shareholders over the next couple of financial years.

FY26

We’re already more than three-quarters of the way through ANZ’s 2026 financial year, which ends on 30 September 2026.

The company’s FY26 half-year result was promising for the ASX bank share.

Compared to the second half of FY25 (and excluding FY25 second half significant items), HY26 cash profit saw operating expenses decline by 9%, cash net profit before provisions climbed 12%, and cash profit grew 14%.

With that result, ANZ’s board of directors decided to maintain its interim dividend per share at 83 cents – the same as six months ago.

The projection on Commsec suggests the ASX bank share could pay an annual dividend per ANZ share of $1.66 in FY26. That possible 2026 financial year payout would be the same as the FY25 payout.

At the time of writing, ANZ’s dividend yield for FY26 could be 4.6% excluding franking credits and 6.1% including franking credits.

FY27

When the company announced its FY26 half-year result in May, ANZ CEO Nuno Matos gave some commentary on the evolving situation for the local economy and what it could mean for customers (and owners of ANZ shares):

Our customers understand the world is more complex. Our corporate customers have been preparing for shocks, building capital and liquidity, maintaining flexibility and improving supply chain resilience. As such, there has been no material change in the overall borrowing behaviour of our customers.

Likewise, in both Australia and New Zealand, households entered this period with generally strong balance sheets and high savings buffers. We have not seen any material increase in new customers entering hardship or receiving assistance. However, we recognise that some individuals and businesses are navigating these challenging circumstances.

…Reflecting this raised risk in the external environment, we have increased our collective provisions, with our coverage ratio up 4 basis points. We continue to watch the situation closely.

The result announced today confirms our actions to reset the bank are working, but we have more to do. As we look ahead, we continue to focus on executing our ANZ 2030 strategy as we progress our five-year journey to be the best bank for customers and shareholders in Australia and New Zealand         

ANZ borrowers (and prospective borrowers) will also have to deal with the flow-on effects of the Australian Federal Budget, including potentially lower investor demand due to changes to negative gearing and capital gains tax (CGT).

Overall, while ANZ is doing its best to reduce its cost base and become more profitable, it’s operating in a difficult environment.

According to the projection on Commsec, ANZ is expected to maintain its dividend at $1.66 per ANZ share in FY27.

That means it would offer the same dividend yield next financial year – 4.6% excluding franking credits and 6.1% including franking credits.

In my view, there are other ASX shares that could be better buys for the long-term.

The post Here’s the dividend forecast out to 2027 for ANZ shares 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.

Veteran index fund and exchange-traded fund (ETF) provider Vanguard recently announced a new slate of ASX ETFs. Amongst them was the Vanguard International Shares High Yield ETF (ASX: VIHY).

ASX shares are well known for their income potential (not to mention those beloved franking credits). So this new ASX ETF has some stiff local competition. Additionally, the ASX is also home to a few ASX ETFs, both locally and internationally focused, that prioritise generating dividend income for their investors. Some popular examples include the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD) and the State Street SPDR S&P Global Dividend ETF (ASX: WDIV).

So today, let’s see how this new ASX ETF from Vanguard measures up.

What’s in this new VIHY Vanguard ETF?

To start off with, the Vanguard International Shares High Yield ETF tracks the FTSE All-World ex Australia High Dividend Yield Net Tax Index. This index represents more than 2,300 individual dividend stocks from all over the world. VIHY itself currently holds around 1,600, so already we can see that this is a relatively massive fund in terms of scope.

Like many internationally-focused ETFs in Australia, VIHY is America-heavy. As of 31 May, 41% of its portfolio consisted of US stocks. Japan contributed the next-highest weighting at 9.9%, followed by the United Kingdom (7.1%), Canada (4.6%), Switzerland (4.5%), France (4.4%), and Taiwan (3.5%).

But let’s get into what this ASX ETF actually holds in its portfolio.

Many of its top holdings are well-known US dividend payers. These include JPMorgan Chase & Co, Exxon Mobil Corp, Johnson & Johnson, Cisco Systems, Chevron Corp, Coca-Cola, Philip Morris International, Toyota, and Procter & Gamble.

Moving on to this ASX ETF’s dividend potential, VIHY pays out its dividend distributions quarterly. It has only declared one payment to investors so far, a dividend distribution worth 49.49 cents per unit. This will be paid out later this month on 16 July.

If we annualise this payment (by assuming that its next three match its first), we get a potential 12-month dividend distribution total of $1.98 per unit. At the current (at the time of writing) price of $54.68, we get a potential yield of 3.62%.

Now, that’s very arbitrary at this stage. We don’t yet know what VIHY’s next few dividend payments will look like. However, if investors are looking for an easy income investment that would diversify an ASX-heavy dividend portfolio, this ASX ETF might be worth considering.

 

 

 

 

 

The post VIHY: Is Vanguard’s new ASX dividend ETF a buy for income? appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Sebastian Bowen has positions in Coca-Cola, Philip Morris International, and Procter & Gamble. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Chevron, Cisco Systems, and JPMorgan Chase. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and Philip Morris International. 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.

If I had a spare $5,000 to invest in ASX shares this week, here’s where I’d put my money.

Life360 Inc (ASX: 360)

Life360 shares had a difficult start to 2026, but have now rebounded around 46% from an annual low in mid-May.

It’s good news for investors, but the ASX tech company’s shares are now around 53% below an all-time high set in October last year and 19% lower year to date. 

The ASX shares were caught up in a tech-sector-wide sell-off over the past nine months. Investors sold their tech shares amid growing fears that companies’ core services could be replaced by AI. 

At the same time, there has been some concern that some tech company share prices, including Life360, had become overpriced and were trading above fair value.

But I think the shares have been oversold, and there is huge growth potential ahead.

Life360 reported a 38% increase in quarterly revenue, mostly driven by a 32% increase in subscription revenue and a 36% increase in core subscription revenue. The company also upgraded its FY26 adjusted EBITDA and revenue guidance, showing that the business is profitable and performing well.

Market Index data shows brokers have a strong buy consensus on the stock. The $32.01 average target price implies a potential 22% upside, at the time of writing.

Eagers Automotive Ltd (ASX: APE)

After a strong start to the year, Eagers shares have gradually tumbled, down around 15% for the year-to-date, at the time of writing. 

It’s not all bad news, though. The ASX automotive company’s shares have rebounded since hitting an annual low in early June.

ASX consumer discretionary shares have outperformed over the past month thanks to tailwinds from renewed confidence around interest rate cuts and softer-than-expected inflation figures last month. 

Eagers itself has recorded some impressive financial results recently too. 

In May, the company reported that its Australia and New Zealand turnover was up 5% year-on-year for the four months to April. The company’s order book climbed 70% from the previous quarter, and NPAT was up 40% year-on-year.

I see the headwinds continuing for Eagers shares this year.

Brokers are bullish too. They tip a 25% potential upside ahead for the ASX shares, to an average $26.04 per share, at the time of writing.

Flight Centre Travel Group Ltd (ASX: FLT)

While Flight Centre shares have rebounded strongly from a multi-year low in mid-May, they’re still down around 18% year to date at the time of writing. 

I think that even after the latest share price increase, the ASX travel share still presents a fantastic buying opportunity for investors.

It looks like travel demand is still strong, and fuel price volatility has lessened over the past month. If these both continue then I think we’ll see even more investors buy back into the shares.

The company is also due to release its FY26 earnings results in late-August. If the result comes in ahead of market expectations we could see a quick uptick in Flight Centre shares.

Brokers agree too. Market Index data shows a consensus buy rating for the ASX shares over the next 12 months. The average $15.36 target price implies a potential 23% upside ahead, at the time of writing.

The post 3 ASX shares I’d buy with $5,000 this week appeared first on The Motley Fool Australia.

More reading

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• Flight Centre shares rebound 30% from multi-year low: Can they keep climbing higher?
• 7 ASX 200 shares given buy ratings this week

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 positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Eagers Automotive Ltd and Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.