If you're an owner of ANZ Group Holdings Ltd (ASX: ANZ) shares, then you no doubt enjoy receiving dividends from the bank each year.
After all, as one of the biggest dividend payers on the Australian share market, this big four bank pays out billions of dollars of its profits to its lucky shareholders each year.
But will that be the case in 2024 or should you prepare for a dividend cut? Let's find out what analysts are saying.
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The future of ANZ's dividends
First things first, there's still one more dividend to be declared and then paid in 2023.
During the first half of FY 2023, the bank declared an 81 cents per share fully franked dividend. This was paid to eligible shareholders on 3 July.
Looking ahead to its full-year results next month, the team at Goldman Sachs is expecting the bank to announce another 81 cents per share dividend. This will bring its full-year dividend to $1.62 per share, which will be an increase of almost 12% year on year.
The good news is that Goldman Sachs believes that ANZ will maintain its dividend at $1.62 per share in FY 2024.
Based on the current ANZ share price of $25.55, this will mean a very generous fully franked dividend yield of 6.35% if the broker is on the money with its estimate.
And while a lot can change in the banking sector in 12 months, Goldman Sachs believes that ANZ will be keeping its dividend at $1.62 per share again in FY 2025. This will mean another attractive 6.35% dividend yield for shareholders to look forward to.
Are ANZ shares good value?
As well as predicting big dividend yields, Goldman sees scope for ANZ shares to rise from current levels.
It has a buy rating and a $27.25 price target, which implies an almost 7% upside for investors. Combined with dividends, the total 12-month return stretches to approximately 13%.
