Three dividends in 13 months
About the author:
- Author name:
- By Nick Harris
- Job title:
- Senior Analyst
- Date posted:
- 01 April 2014, 2:26 PM
- Sectors Covered:
- Telecommunications, Technology
ANZ Bank, Bank of Queensland, National Australia Bank and Westpac report their interim FY14 results in the next six weeks.
Buy these banks now and you can lock in three dividends over the next 13 months, with an average gross yield of around 10.8% (cash yield of 8.3%). This is more than double the 3.5% yield currently offered on one year term deposits.
Our Chief Economist Michael Knox believes that Australia is trapped in a growth recession and that interest rates rises are implausible when unemployment is going up. In our view, this makes bank yields look increasingly attractive.
ANZ Banking Group (ANZ)
ANZ reports its half yearly result on Thursday, 1 May 2014 and will go ex-dividend on 9 May. The interim dividend will be paid on 1 July 2014. We forecast an interim dividend of 81cps (up 11% on the 73cps dividend declared at the 1H13 result).
ANZ is expected to pay three dividends totalling $2.63 over the next 13 months which equates to an 8.1% cash yield.
Bank of Queensland (BOQ)
BOQ reports its half yearly result on Friday, 11 May 2014 and will go ex-dividend on 28 April. The interim dividend will be paid on 23 May 2014. We forecast an interim dividend of 32cps (up 14.3% on the 28cps dividend declared at the 1H13 result).
BOQ is expected to pay three dividends totalling $1.01 over the next 13 months which equates to a 7.9% cash yield.
National Australia Bank (NAB)
NAB reports its half yearly result on Thursday, 8 May 2014 and will go ex-dividend on 14 May. The interim dividend will be paid on 8 July 2014. We forecast an interim dividend of 101cps (up 8.6% on the 93cps dividend declared at the 1H13 result).
NAB is expected to pay three dividends totalling $3.11 over the next 13 months which equates to an 8.9% cash yield.
Westpac Banking Group (WBC)
WBC reports its half yearly result on Monday, 5 May 2014 and will go ex-dividend on 12 May. The interim dividend will be paid on 2 July 2014. We forecast an interim dividend of 92cps (up 7.0% on the 86cps dividend declared at the 1H13 result).
WBC is expected to pay three dividends totalling $2.79 over the next 13 months which equates to an 8.3% cash yield.
More information
If you are interested in finding out more, please contact your nearest Morgans office.
Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.