If I invest $10,000 in ANZ shares how much passive income will I receive?

Is this big four bank a good option for income investors? Let's have a look.

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Excited woman holding out $100 notes, symbolising dividends.

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ANZ Group Holdings Ltd (ASX: ANZ) shares are a popular option for investors seeking passive income and it isn't hard to see why.

Each year, like the rest of the big four banks, ANZ shares a large portion of its profits with its shareholders in the form of dividends.

At present, the bank operates with a target dividend payout ratio of between 60% and 65%.

This means for every billion dollars of profit it makes, $600 million to $650 million lands right back in the pockets of shareholders. This led to a total of $4.2 billion being returned to them in FY 2022.

But will ANZ continue to line the pockets of shareholders with money? How much passive income would we receive if we invested $10,000 into its shares today? Let's find out.

Passive income from ANZ shares

On Thursday, ANZ shares finished the day trading at $25.37. This means that if you were to invest $10,000, you would receive approximately 394 units.

According to a note out of Goldman Sachs, its analysts are expecting the bank to declare a final dividend of 81 cents per share later this month with its full-year results. If this proves accurate, your 394 ANZ shares would generate $319.14 of passive income.

But that's just one dividend, there will be another coming in six months when the bank's half-year results are released.

As things stand, Goldman is expecting another 81 cents per share fully franked dividend with those results. This will mean another $319.14 of passive income heading your way.

All in all, that's a total of $638.28 in dividends expected over the next 12 months from a $10,000 investment.

It is also worth noting that Goldman currently has a conviction buy rating and a $27.38 price target on the bank's shares. If they were to reach that level, your 394 units would have a market value of $10,788 excluding dividends.

That's not a bad return if you ask me!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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