How does the Westpac (ASX:WBC) dividend compare to the banking sector?

Here are the expected yields from these banking giant…

| More on:
Couple counting out money

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

When it comes to dividends, the banking sector is a great place for investors to look. Among the most popular options at this side of the market is the Westpac Banking Corp (ASX: WBC) dividend. And it isn't hard to see why.

According to a note out of Morgans, its analysts expect Australia's oldest bank to pay a fully franked dividend of $1.36 per share in FY 2022.

Based on the current Westpac share price of $25.41, this will mean a yield of 5.4%.

How does the Westpac dividend compare to the rest of the banks?

Elsewhere in the sector, Morgans is forecasting a $1.65 per share fully franked dividend from Australia and New Zealand Banking GrpLtd (ASX: ANZ) in FY 2022. This represents a 6% yield for investors.

The broker isn't expecting an as generous yield from Commonwealth Bank of Australia (ASX: CBA). It has pencilled in a fully franked dividend of $4.28 per share in FY 2022. With the CBA share price currently fetching $100.08, this will mean a yield of 4.3%.

The final big four bank, National Australia Bank Ltd (ASX: NAB), is forecast by Morgans to provide an attractive yield in FY 2022. Its analysts are forecasting a $1.33 per share fully franked dividend. Which, based on the current NAB share price of $27.27, will mean a 4.9% yield for investors.

Finally, Macquarie Group Ltd (ASX: MQG) is expected to pay a dividend of $5.81 per share in FY 2022. This equates to a yield of 3.3% based on the current Macquarie share price.

Which banks are in the buy zone?

Of the five banks mentioned, just ANZ and Westpac have been named as buys by Morgans.

The broker has an add rating and $29.50 price target on Westpac's shares and an add rating and $34.50 price target on ANZ's shares.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Dividend Investing

Joyful woman at a beach on the Gold Coast with her arms spread out.
How to invest

How to bank $10,000 a year in passive income from these 3 top ASX shares

Here’s how I’d go about building a $10,000 passive income stream from these top ASX stocks.

Read more »

A woman relaxes on a yellow couch with a book and cuppa, and looks pensively away as she contemplates the joy of earning passive income.
ETFs

3 ASX ETFs to buy for passive income in May

Don't like stock picking but want passive income? Here are three funds that could help you.

Read more »

A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.
Bank Shares

Want to bag the next Westpac shares dividend? Better be quick…

Westpac will pay an interim dividend of 76 cents per share next month.

Read more »

supermarket asx shares represented by shopping trolley in supermarket aisle
Dividend Investing

Should I buy Coles shares for their reliable passive income?

We take a look at Coles’ passive income credentials and the potential for share price gains.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Dividend Investing

Buy Woolworths and these ASX dividend shares

Analysts are tipping the supermarket giant and these shares as buys. But why?

Read more »

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Dividend Investing

This ASX 200 stock is planning to pay a 25% dividend yield this month

This stock is rewarding its shareholders handsomely. Here's what is happening.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

Buy these ASX dividend stocks to supercharge your passive income

Analysts believe that these buy-rated stocks will provide income investors with some great yields in the near term.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

3 ASX shares yielding over 7% for your portfolio

Analysts are expecting big yields from these buy-rated shares in the near term.

Read more »