When it comes to dividends, I think the banking sector is a great place for income investors to look for ideas.
After all, the big four banks and their regional peers offer some of the most generous yields on the local share market. Here's how much bang you get for your buck with the banks right now:
The Australia and New Zealand Banking Group (ASX: ANZ) share price last traded at $27.00, which means that it currently offers a trailing fully franked 5.9% dividend yield.
The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price ended the day lower at $11.40 on Monday. Based on this and its current dividend of 70 cents per share, the regional bank's shares provide a fully franked 6.1% dividend yield.
The Bank of Queensland Limited (ASX: BOQ) share price dropped 1% to finish the day at $9.29 yesterday. The general consensus is that the bank's poor performance will mean a dividend cut to 68 cents per share is necessary in FY 2019. If this is accurate then it means its shares offer a fully franked 7.3% dividend yield.
The Commonwealth Bank of Australia (ASX: CBA) share price closed 0.5% lower at $81.06 on Monday. At this level Australia's largest bank offers investors a fully franked 5.3% dividend yield.
The CYBG PLC (ASX: CYB) share price rose almost 1.5% to $3.65 yesterday. The UK-based bank is expected to increase its dividend to 10.7 cents per share in FY 2020, which equates to an unfranked 2.9% dividend yield.
The Macquarie Group Ltd (ASX: MQG) share price last traded at $126.91, which means that the investment bank's shares offer a partially franked 4.5% dividend yield.
The National Australia Bank Ltd (ASX: NAB) share price dropped 0.5% to $27.03 on Monday. This means that (based on expectations that its final dividend will also be cut to 83 cents per share) its shares currently offer a fully franked 6.1% dividend yield.
The Westpac Banking Corp (ASX: WBC) share price finished the day at $27.81 yesterday, which means that Australia's oldest bank offers income investors a very generous fully franked 6.8% dividend yield.
