Bought 500 ANZ shares in 2021? Guess how much passive income you've already banked!

ANZ has a lengthy track record of paying two annual dividends per year.

| More on:
Woman relaxing on her phone on her couch, symbolising passive income.

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

ANZ Group Holdings Ltd (ASX: ANZ) shares have long attracted passive income investors for their sizeable and reliable twice yearly dividend payments.

And with the exception of the past two dividends, which were franked at 56% and 65% respectively, ANZ's dividends have come fully franked going back more than a decade. Meaning you should be able to hold onto more of that passive income come tax time.

The S&P/ASX 200 Index (ASX: XJO) bank stock even paid two fully franked dividends in the pandemic addled year of 2020. Although these were significantly scaled back.

But it's not 2020 we're interested in here.

Instead, we turn the clock back to early 2021, by which time ANZ shares had recovered most of their COVID-fuelled losses.

On 29 January 2021, you could have picked up the ASX 200 bank stock for $23.52 a share.

Meaning your 500 ANZ shares will have set you back $11,760.

Now, atop earning regular passive income from those shares, you'll also have enjoyed some solid capital gains, as you can see in the chart below.

Created with Highcharts 11.4.3Anz Group PriceZoom1M3M6MYTD1Y5Y10YALL1 Jan 202117 Jul 2025Zoom ▾Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '25Jul '252021202120222022202320232024202420252025www.fool.com.au

The ANZ share price closed yesterday at $30.46.

That means the 500 shares you bought in early 2021 would now be worth $15,230. Or a tidy gain of 29.5%.

As for that passive income…

Banking on ANZ shares for passive income

If you'd bought your ANZ shares in January of 2021, you'd have been eligible for the past seven dividend payments.

You'd still need to wait a few months for that eighth payment.

ANZ reports its full-year results and final dividend amount on 8 November. Eligible investors can then expect to receive that passive income payment in December, just in time for Christmas!

It's worth noting, though, that ANZ's FY 2024 interim dividend of 83 cents a share marked the highest interim payout since 2015.

Commenting on that passive income payment at the time, ANZ CEO Shayne Elliot said:

We've driven a lot of productivity gains, and we take those gains by getting more efficient and some of those go back to our shareholders in the form of dividends and others, a lot of it, gets reinvested into the business…

Adding up all seven dividend payments you have received since January 2021, they total $5.46 a share, mostly franked.

With 500 ANZ shares then, you'll have received $2,730 in passive income since 2021.

For your accumulated gains, let's add that $5.46 a share in dividends back to yesterday's closing price of $30.46 a share.

That brings the accumulated value of your ANZ shares to $35.92 apiece. This means your 500 shares bought for $11,760 in January 2021 will already have returned $17,960, or a gain of 52.7%.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

More on Dividend Investing

Delighted adult man, working on a company slogan, on his laptop.
Dividend Investing

Why Macquarie predicts this high-yielding ASX 300 dividend stock is set to surge 32%

Macquarie expects some outsized returns from this ASX 300 dividend stock. Let’s find out why.

Read more »

A woman standing in a blue shirt smiles as she uses her mobile phone.
Dividend Investing

Buy Telstra and this ASX dividend stock for passive income

Macquarie thinks that these stocks could be top picks for income investors.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

Analysts name the best ASX dividend stocks to buy this month

Let's see what they are saying about these income options.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Buy these ASX dividend shares for 5% to 7% yields

Brokers think these shares could be top picks for passive income investors.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Dividend Investing

Own ASX A200, NDQ, or ARMR ETFs? It's dividend payday for you!

Betashares will pay distributions to ASX ETF investors today.

Read more »

A young female ASX investor sits at her desk with her fists raised in excitement as she reads about rising ASX share prices on her laptop.
Dividend Investing

Why it's a great day for Vanguard ASX ETF investors!

It's dividend payday for investors in the VAS, VHY, VGS and other Vanguard ETFs today.

Read more »

Male hands holding Australian dollar banknotes, symbolising dividends.
Dividend Investing

This ASX 200 stock has suddenly become the highest-yielder on the index!

This stock currently has a yield of over 10%.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Dividend Investing

2 of the best ASX dividend shares to buy for income

Let's see what analysts at Bell Potter are saying about these top income stocks.

Read more »