Here's how much Macquarie's (ASX:MQG) dividend is worth now

How much is Macquarie Group Ltd (ASX: MQG), the ASX's fifth bank, worth in terms of dividends today? A lot more than last year, that's certain

| More on:
A young entrepreneur boy catching money at his desk, indicating growth in the ASX share price or dividends

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's been a blockbuster week for ASX bank shares. We saw 3 of the four major banks all report half-year earnings this week, Commonwealth Bank of Australia (ASX: CBA) being the exception. All three have reported major boosts in earnings and profits, and a robust increase in banking dividends to boot. Well, today, we have another ASX bank that's reported its earnings. Macquarie Group Ltd (ASX: MQG) isn't officially one of the big four. But is sometimes referred to as ASX's fifth bank for its size and clout in the ASX financial space.

Although its banking activities are far less prevalent than the other banks, Macquarie is still a popular share for ASX investors. And it didn't disappoint this morning. Macquarie shares are, at the time of writing, up 0.7% to $160.09 a share. That's just shy of the bank's all-time high.

Investors have evidently been impressed with what Macquarie had to offer this morning. As we reported earlier, the bank reported a 10% rise in profits to $3.02 billion, which included a 39% jump in its trading and investments division.

But there was a nice surprise in the dividend department as well. Macquarie announced that the company's final dividend would come in at $3.35 a share. That's a boost of 86% over last year's level.

So how much is Macquarie's dividend now worth?

Macquarie announced beefed-up dividend

Well, on the current share price, the company has a trailing dividend yield of 1.97%. That comes from the bank's last 2 dividends, which came in at $1.80 and $1.35 per share respectively, both paid out last year with 40% franking. Both of those dividends represented big downgrades from the prior year when the bank paid out $3.60 and $2.50 respectively.

So with Macquarie's newly announced dividend, its trailing 12-month dividend will be $4.70 per share. That would give us a trailing yield on current pricing of 2.94%.

If we annualise Macquarie's new dividend, we would get a potential forward dividend of $6.70 per share, which would represent a forward yield of 4.19%.

That's not quite as high as the other ASX banks. But investors have rarely priced Macquarie at a similar yield level to the other big four banks anyway. Even so, today Macquarie has beefed up its income chops substantially and has gone a long way in restoring its dividend to a pre-COVID level. No doubt shareholders will be pleased with that development.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 6 March 2025

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Bank Shares

A man watches the share price movement closely.
Bank Shares

I want to buy CBA shares. What price should I pay?

What would be a good valuation to buy CBA at?

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Bank Shares

ANZ shares: Buy, sell, hold?

With the ANZ share price in retreat, the bank stock’s dividend yield is now at 6.2%.

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Bank Shares

Is the CBA share price a buy amid the global tariff sell-off?

Are CBA shares now a bargain after some volatility?

Read more »

Happy young couple saving money in piggy bank.
Bank Shares

$10,000 invested in ANZ shares 5 years ago is now worth…

Was it a smart move? Let's run the numbers.

Read more »

Frustrated and shocked business woman reading bad news online from phone.
Bank Shares

ANZ share price sinks on APRA bombshell

Let's see what the big four bank has announced this morning.

Read more »

three businessmen stand in silhouette against a window of an office with papers displaying graphs and office documents on a desk in the foreground.
Bank Shares

Westpac shares marching higher amid latest executive shakeup

With today’s announcement, Westpac continues to reshape its top level leadership.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

$20,000 invested in NAB shares five years ago is now worth…

Was it a smart idea to buy this banking giant's shares at the height of the pandemic?

Read more »

Business people discussing project on digital tablet.
Bank Shares

How did the CBA share price hold up during the March market turmoil?

Did you catch what happened with the CBA share price in March?

Read more »