Insights

Should you buy ANZ (ASX:ANZ) shares in October for the dividend yield?

Is this bank share in the buy zone?
The post Should you buy ANZ (ASX:ANZ) shares in October for the dividend yield? appeared first on The Motley Fool Australia. –

If you’re an income investor and don’t already have meaningful exposure to the banking sector, then the Australia and New Zealand Banking GrpLtd (ASX: ANZ) dividend could be worth considering.

That’s the view of one of Australia’s leading brokers.

Why might the ANZ dividend be a good option?

According to a recent note out of Bell Potter, its analysts are very positive on the big four bank and expect the ANZ dividend to grow at a decent rate in the coming years.

The broker has pencilled in a fully franked $1.30 per share dividend in FY 2021. After which, it is forecasting increases to $1.40 per share in FY 2022 and then $1.50 per share in FY 2023.

Based on the current ANZ share price of $27.87, this will mean yields of 4.7%, 5%, and 5.4%, respectively, over the three financial years.

But the returns don’t stop at the ANZ dividend. Bell Potter also sees decent upside for the bank’s shares over the next 12 months.

Where is the ANZ share price heading from here?

The note reveals that Bell Potter currently has a buy rating and $31.00 price target on the company’s shares.

Based on where the ANZ share price finished the week, this suggests that there’s potential upside of 11% for investors. And if you add the ANZ dividend into the equation, the total potential return stretches to approximately 16%.

That’s not bad at all considering the ANZ share price is already smashing the market in 2021. Its shares are up an impressive 21% since the start of the year compared to a gain of 10% for the ASX 200.

Fortunately, judging by what Bell Potter is saying, it doesn’t appear to be too late for income investors to pick up shares when the market reopens next week.

The post Should you buy ANZ (ASX:ANZ) shares in October for the dividend yield? appeared first on The Motley Fool Australia.

Should you invest $1,000 in ANZ right now?

Before you consider ANZ, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ANZ wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Legal risk just increased for the Westpac (ASX:WBC) share price

The ANZ (ASX:ANZ) dividend yield is topping the big four ASX bank shares

Could the ANZ (ASX:ANZ) share price reach $35 by Christmas?

How did ASX bank shares perform in the last quarter?

2 ASX 200 dividend shares to buy next week

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!