If it’s market beating passive income you’re after, then you may be wondering which of the dividend paying S&P/ASX 200 Index (ASX: XJO) bank stocks offer the highest dividend yields.

We’ll answer that question below, as well as looking at how their share prices have performed over the past year.

When you’re on the hunt for higher yielding ASX dividend shares, it’s important to have a look at those share price trends as well.

With that said…

Tapping the Aussie banks for passive income

Over the last 12 months, Commonwealth Bank of Australia (ASX: CBA) has declared a total of $5.05 a share in fully franked dividends.

At the recent CBA share price of $156.30, that sees CommBank shares trading on a fully franked dividend yield of 3.2%. The CBA share price is down around 10% since this time last year.

Over the last 12 months, National Australia Bank Ltd (ASX: NAB) has paid out two fully franked dividends totalling $1.70 a share.

At the recent NAB share price of $38.41, the ASX 200 bank stock trades on a fully franked dividend yield of 4.4%. The NAB share price is down around 11% in a year.

Over the last 12 months, ANZ Group Holdings Ltd (ASX: ANZ) has paid out $1.66 a share in partly franked dividends.

At the recent share price of $36.65 ANZ shares trade on a partly franked dividend yield of 4.5%. Bucking the trend, ANZ shares are up 8.8% in a year.

Over the last 12 months, Westpac Banking Corp (ASX: WBC) has paid out $1.54 a share in fully franked dividends.

At the recent Westpac share price of $33.91, Westpac trades on a fully franked 4.5% dividend yield. Westpac shares are down 12.9% in 12 months.

These are the top two yielding ASX 200 bank stocks

Over the past 12 months, Bendigo and Adelaide Bank Ltd (ASX: BEN) has declared 63 cents a share in fully franked dividends. At the recent Bendigo Bank share price of $10.61, this ASX 200 bank stock trades on a fully franked dividend yield of 5.9%.

Bendigo Bank shares are down around 21% in a year.

Over the past 12 months, Bank of Queensland Ltd (ASX: BOQ) paid out a total of 55 cents a share in fully franked dividends. That includes the special capital return dividend the bank paid out on 24 August.

At the recent share price of $6.42, this sees Bank of Queensland shares trading on a fully franked dividend yield of 8.6%. Even excluding the special dividend, the stock still trades on a fully franked 6.2% yield, making this the highest yielding ASX 200 bank stock.

Bank of Queensland shares are down around 11% in 12 months.

The post The 2 top yielding ASX 200 bank stocks revealed (Hint: Not CBA shares) appeared first on The Motley Fool Australia.

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

It’s been a rough month for S&P/ASX 200 Index (ASX: XJO) bank shares, with declines across the board reversing many gains made earlier this year.

It looks like investor sentiment has turned negative amid concerns about falling mortgage demand, a weakening housing market, and tight competition squeezing margins.

It didn’t help that inflation data came in higher than expected in August, sending major banks into a tailspin. Recent July inflation data showed underlying inflation remained at 3.6%, above the Reserve Bank’s 2% to 3% target. The update has prompted several major banks to forecast another hike as early as September.

What happened to the ASX 200 big four major banks in August?

Australia’s banking sector is dominated by the big four banks: Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and ANZ Group Holdings Ltd (ASX: ANZ).  

Together, they make up around a quarter of the ASX 200 Index by market capitalisation. 

There was a flurry of results announcements from the ASX major banks this month, which didn’t exactly instil confidence.

CBA reported a record cash profit, while NAB, Westpac and ANZ also delivered resilient quarterly earnings. However, all four majors showed signs of weaker mortgage demand.

At the time of writing, with only a couple more trading days left of the month, CBA shares are changing hands at $155.68 a piece. The ASX 200 major bank’s shares have fallen around 12% in August. 

NAB shares are trending lower at the time of writing, down around 8% over the month to $38.06 per share.

ANZ shares are down around 2% for the month of August and are changing hands at $36.54 per share at the time of writing.

Meanwhile, Westpac shares are trading for $33.83 each, having fallen around 11% throughout the month.

What about the mid-tier banks?

It’s more of the same for ASX 200 mid-tier banks too.

Bendigo and Adelaide Bank Ltd (ASX: BEN) fell around 8% to $10.50, at the time of writing.

Bank of Queensland Ltd (ASX: BOQ) shares have fallen a slightly lesser 4% to a current trading price of $6.38 each. 

While Macquarie Group Ltd (ASX: MQG) shares suffered the least, they are still in the red for the month, at the time of writing. The ASX bank shares are down around 1% for the month and trade at $251.59 per share.

Which ASX bank shares are a buy for September?

Macquarie shares were the least affected by the ASX bank stock sell-off in August, and brokers are bullish on the prospect of a near-term rebound. TradingView data shows that the majority (nine out of 12) have a buy/strong buy rating on Macquarie shares. The average $268.69 target price now implies a potential upside of around 7% at the time of writing.

Which ASX bank shares to brokers rate as a hold?

TradingView data shows the majority of brokers have a hold rating on ANZ shares. But the $35.92 average target price implies a potential 2% downside at the time of writing.

The data also shows the majority of brokers rate NAB shares as a hold. The $38.07 average target price is largely flat relative to the trading price at the time of writing, with a small potential 0.2% upside ahead.

Brokers are also neutral on Bendigo Bank shares. TradingView data shows that the majority have a hold rating, but again, the $10.33 average target price implies a potential 2% downside at the time of writing.

And which ones have a sell recommendation?

Then there are the ASX bank shares that brokers are most bearish on.

CBA shares still the least favoured ASX bank stock. TradingView data shows the majority have a strong sell rating on the banking giant’s shares. The latest $127.86 target price implies a potential 18% downside ahead for investors, at the time of writing. 

The majority also have a sell rating on Westpac shares. The latest $33.38 average target price now implies a potential 1% downside, according to TradingView data.

BOQ shares are also expected to keep falling. Most brokers rate the ASX bank as a sell, and the $6.09 average target price on TradingView now implies around a 5% downside ahead.

The post Are ASX bank shares a buy in September? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Bendigo And Adelaide Bank. 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 in September, these would be four of my top picks.

Life360 Inc (ASX: 360)

Life360 posted its second-quarter FY26 update in mid-August, including a 38% increase in revenue, to US$159 million, and a 53% increase in adjusted EBITDA, to US$31.1 million. Looking ahead, Life360 still expects FY26 revenue growth to accelerate between 33% to 40% year-on-year to between US$650 million and US$685 million. But investors weren’t impressed, likely because they were expecting another upward revision to FY26 revenue guidance. But I think the ASX shares have been oversold and that there is still great growth potential ahead. Brokers seem to agree. Market Index shows they all have a strong buy consensus and the $31.72 target price implies a potential 57% upside, at the time of writing.

WiseTech Global Ltd (ASX: WTC) 

WiseTech shares faced yet more headwinds in August after the company reported a 46% increase in EBITDA to US$558.4 million for the 12 months through to the 30th of June. The result was in line with the company’s $550 million to $585 million guidance range but short of market forecasts of $569.5 million. It didn’t blow investors away, but the company still maintains a strong competitive advantage in the global logistics industry, and I think the shares are trading well below fair value. Market Index shows that the majority of brokers are very bullish on the ASX tech shares and hold a strong buy rating. The average $57.66 target price implies a potential 45% upside over the next 12 months, at the time of writing.

Electro Optic Systems Holdings Ltd (ASX: EOS)

EOS posted a huge 283% hike in its half-year revenue last week, and a reduced net loss of $32.9 million. Underlying EBITDA swung into profit, and its net assets grew to $391.6 million. Going forward, EOS expects continued strong demand, driven by defence spending and escalating global interest in counter-drone technologies. Management is forecasting a record FY26 revenue ahead. Brokers are also incredibly bullish about the outlook for EOS shares. Market Index data shows that all analysts rate the ASX shares a strong buy. The average $13.10 target price implies a potential 15% upside at the time of writing.

Light & Wonder Inc (ASX: LNW)

Light & Wonder has been reshaping its business in recent years, focusing on recurring revenue and higher-quality earnings. And it looks like all that hard work is finally coming to fruition. The company posted a strong second-quarter earnings update in early August, including a 2% increase in revenue and a 26% increase in net income year-on-year. The company also achieved a 16% increase in adjusted net profit after tax and amortisation (NPATA). Brokers are bullish on ASX gaming shares and expect them to keep climbing. At the time of writing, Market Index data shows all brokers have a strong buy rating, and the $187.50 target price implies an upside of around 45%.

The post 4 ASX shares I’d buy with $5,000 in September appeared first on The Motley Fool Australia.

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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 Electro Optic Systems, Life360, Light & Wonder Inc, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.