Current Analysis: ANZ Group

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ANZ Group (ANZGF) is the owner of one of Australia's four major banks and provides retail, business, and institutional banking services to customers in Australia, New Zealand, and Asia-Pacific.

The super-regional Asian strategy was de-emphasised, with management focusing on the higher-returning businesses in Australia and New Zealand. ANZ Bank still retains a tilt to its Asia-centric strategy, but is now more balanced, better capitalised and is a less complex bank.

ANZ Group Holdings Limited was founded in 1835 and is based in Melbourne, Australia.

Three key data points gauge ANZ Group or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys also best tell whether any company has made, is making, and will make money.
 

ANZGF Price

Over the past year, ANZ Group share price increased near 20% from $15.38 to $18.46 as of Monday’s market close.

If ANZ Group shares trade in the range of $8.00 to $22.00 this next year, its recent $18.46 share price might rise to $20.00 by next year. Of course, ANZ Group price could drop about the same $1.54 estimated amount, or more.

My annual upside estimate of  $1.54 however, is just under the average share price gain by ANZ Group over the past two years.
 

ANZGF Dividend

ANZ Group has paid semi-annual variable dividends since December, 2004.

ANZ Group most recent SA dividend of $0.55 was declared May 7th for shareholders of record May 13th and the dividend pay date is July 1st.

A forward looking $1.10 annual dividend yields 5.93% at Monday’s $18.46 share price.
 

ANZGF Returns

To put it all together, add the ANZ Group projected annual dividend of $1.10 to the estimated price upside of $1.54 to get a $2.64 estimated gross gain for the coming year.

At Friday’s $18.46 share price, a little under $1000 would buy 54 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.185 per share.

Subtracting that unlikely $0.185 brokerage cost from the $2.64 estimated gross gain reveals a net gain of $2.455 X 54 shares = $132.57 for about an 12.25% estimated net gain on the year.

Furthermore, the $59.30 annual income from $1K invested is over 3.2 times more than the single share price. It is an ideal dividend dog.

You might choose to pounce on ANZ Group. It is a 189 year-old dividend paying Australian -based diversified Bank that has a 20 year track record paying semi annual variable dividends.

The exact track of ANZ Group future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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