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.

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 graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

CBA shares hit another all-time high. Can they surpass $200 in 2025?

CBA shares have a tailwind pushing up their price that has nothing directly to do with the bank's business performance.

Read more »

A hip young man with a beard and manbun sits thoughtfully at his laptop computer in a darkened room, staring at the screen with his chin resting on his hand in thought.
Bank Shares

Should I buy JP Morgan or CBA shares?

CBA shares hit another new all-time high today.

Read more »

guy helping girl invest in shares and dividends
Bank Shares

Is the Westpac share price a buy for passive income?

Should investors look at Westpac shares for income?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Bank Shares

Could the growth of Kiwibank impact ANZ shares?

Could a competitor hurt ANZ’s outlook?

Read more »

Shocked office worker staring at computer screen with colleagues working in the background.
Bank Shares

Why CBA shares could keep on rising

Can the ASX banking giant continue to defy analyst expectations?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Thinking of selling your CBA shares? This expert says you should hold on

CBA shares are up by about 80% since November 2023.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Bank Shares

The catalysts that could bring CBA shares back to earth

CBA is now the world's most expensive banking stock.

Read more »

A money jar filled with coins, indicating an investment return from an ASX dividend share
Bank Shares

Is the CBA share price a buy for passive dividend income?

CBA is one of the biggest dividend payers in Australia. Is it a good buy?

Read more »