Thoughts on Bank Dividends in May
Hi Team , Just after your thoughts with regard to what dividends the banks will announce next month for WBC ,ANZ , NAB ? Cheers Craig
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Answer
Hi Craig,
As you know three of the “Big Four” banks trade ex-dividend in May i.e., ANZ, NAB and Westpac. We see no reason not to go with Bloomberg consensus on these although there maybe a few cents variation: i.e. ANZ 82c and a forecasted 6.4% yield over the next 12-months, NAB 91c and a forecasted 5.8% yield over the next 12-months, and Westpac 72c and a forecasted 5.6% yield over the next 12-months – NAB & WBC are expected to be fully franked whereas ANZ may not, its last dividend only 56% franked.
Going forward the current “higher for longer” messaging for interest rates should help bank margins and conversely when rates do start to reverse the ASX banks will start to deliver attractive dividends compared to term deposits, for now they look like solid investments. ANZ is one stock we’ve flagged as delivering a decent roadmap for the ASX200 through 2024:
- Before the looming dividend we like ANZ ~$27.50, or 2% lower while its looks fully priced into strength above $30.
- A very tight range but we can see another prolonged period of relatively tight consolidation as we did through 2023.
