Insights

The ANZ share price is up 24% so far in 2021. Here’s why

How has this banking giant had such a strong year so far?
The post The ANZ share price is up 24% so far in 2021. Here’s why appeared first on The Motley Fool Australia. –

By now, most ASX investors would know that the S&P/ASX 200 Index (ASX: XJO) has enjoyed a pretty successful year in 2021 so far. The ASX 200 is now up roughly 9.6% year to date (as of Friday’s market close). But what might be a little more surprising for most investors is how much better the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has performed over the year.

Year to date, ANZ shares are up a very robust 23.96%. That’s more than double the broader market.

So what’s behind this surprising outperformance?

Well, to understand that, let’s go back to last year. 2020 was a shocking year for ANZ shares. This ASX bank ended up going backwards over the calendar year by approximately 11.8%. In stark contrast, the ASX 200 ended up losing just 1.45% in 2020.

Last year also saw ANZ slash its cherished dividend payments. This ASX bank ended up only paying out 60 cents per share in dividends over 2020, a massive drop from the $1.60 it shelled out in 2019.

So it’s not hard to see why investors shunned ANZ shares in 2020.

ANZ share price rises after dividends restored?

This year has seen ANZ’s dividend bona fides restored somewhat. In July, ANZ paid out its interim dividend for 2021, which came to 70 cents per share, fully franked. That’s more than what ANZ paid out over all of the previous year. Just this week, ANZ also announced its upcoming final dividend will be worth 72 cents per share (also fully franked). That’s getting pretty close to its 2019 levels.

Since ANZ underperformed the ASX 200 by such a large margin in 2020, it’s perhaps not too surprising to see it bounce back stronger in 2021 so far, especially with such an enthusiastic return to paying out healthy dividends.

But one final thing to note. While ANZ’s performance has smashed the market, it’s actually pretty poor for an ASX bank share. In contrast to ANZ’s year-to-date performance, Commonwealth Bank of Australia (ASX: CBA) has appreciated by 27.5% over the same period. National Australia Bank Ltd (ASX: NAB) shares have gained 27% gain, while Westpac Banking Corp (ASX: WBC) takes the major bank cake with gains of 32.5% in 2021 so far.

Sorry to rain on your parade with that, ANZ shareholders!

At ANZ’s last share price, this ASX bank has a dividend yield of 3.73%.

The post The ANZ share price is up 24% so far in 2021. Here’s why 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

Top brokers name 3 ASX shares to buy next week

Leading broker says ANZ (ASX:ANZ) share price is a buy

5 things to watch on the ASX 200 on Friday

ASX 200 (ASX:XJO) midday update: ANZ result impresses, Fortescue higher

ANZ (ASX:ANZ) share price higher after beating expectations in FY21

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. 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!