Current Analysis: ANZ Group (ANZGF)

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.

ANZ super-regional Asian strategy has been de-emphasised, with management focusing on the higher-returning businesses in Australia and New Zealand. ANZ Bank still retains a tilt toward its Asia-centric strategy, but is now more balanced, better capitalized and a simpler bank.

It provides banking and wealth management services to consumers, private banking and small business customers through its internet and app-based digital solutions, network of branches, mortgage specialists, relationship managers, and contact centers.

It also offers traditional relationship banking and financial solutions for small, medium, and large enterprises, agricultural business segments, and government and government-related entities.

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

Three key data points gauge ANZ or any dividend paying firm. The key three are:

(1) Price

(2) Dividends

(3) Returns.

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

 

ANZ Price

Over the past year, ANZ Group’s share price increased about 7.5% from $16.38 to $18.50 as of Friday’s market close.

If ANZ shares trade in the range of $8.00 to $25.00 this next year, its recent $18.50 share price might rise to $20.00 by next year. Of course, ANZ Group’s price could also drop about the same $1.50 estimated amount, or more.

My $1.50 upside is based on he bank’s average annual stock price upsides over the past four years.

 

ANZ Dividend

ANZ Group has paid semi-annual dividends since December, 2004. A recent $0.55 semi-annual dividend was declared May 7th for shareholders of record May 13th and was paid July 1st. A forward looking $1.10 annual dividend yields 5.95% at Friday’s closing price.

 

ANZ Returns

To put it all together, a $2.60 estimated one year gross gain per share shows up by adding ANZ Group’s $1.10 annual dividend to the estimated price upside of $1.50.

A little under $1000 buys 54 shares at $18.50 per share.

A $10 broker fee (if charged), paid half at purchase and half at sale, might take $0.185 per share out of the $2.60 gross gain to reveal a net gain of $2.415 X 54 shares = $130.42 for about a 13% estimated net gain on the year.

Furthermore, the $59.50 annual dividend income from $1K invested is over 3 times greater than the $18.50 single share price. By these numbers, ANZ may be an ideal dividend dog.

You might choose to pounce on ANZ Group Holdings Ltd. It is a 189 year-old dividend-paying Australian-based banking firm with a 20 year track record paying variable semi-annual dividends.

The exact track of ANZ 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.


More By This Author:

Current Analysis: Telenor (TELNY)
Current Analysis: Publicis Groupe
Current Analysis: Opera Ltd

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 ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments