Buying Australian🇦🇺 Banks for Dividends 💵💵💵
Investors love the ASX for being one of the highest dividend yield payers in the world. Besides investing in mining companies (usually pays the highest dividends albeit having inconsistent payouts when times are bad), investors also like banks as they generally pay consistent & good dividends. Banks also have less volatile stock prices as compared to mining stocks where production/other major news can significantly impact stock prices.
Today, Australia’s largest bank Commonwealth Bank (CBA) announced a 100% franked final dividend of AUD 2.10 per share 🤩, which brings the total dividend for FY 2022 up to AUD 3.85 per share 🤩🤩
To gain the most of dividends from banks, you can stagger your buys but do ensure that you buy the stock before the ex-dividend date (Ex-DIV date).
‼️Note: ANZ Bank has signed a deal to buy Suncorp’s banking arm & is waiting for approval from the Australian Competition and Consumer Commission. If the deal is completed, Suncorp will solely be an insurance company. So if you do decide to buy Suncorp for its dividend, be sure to read up on Suncorp’s insurance arm to see if you are comfortable holding an insurance company.
$COMMONWEALTH BANK OF AUSTRAL(CBA.AU)$
$AUST AND NZ BANKING GROUP(ANZ.AU)$
$WESTPAC BANKING CORPORATION(WBC.AU)$
$NATIONAL AUSTRALIA BANK LIMITED(NAB.AU)$
$BANK OF QUEENSLAND LIMITED.(BOQ.AU)$
Australian companies can pay 3 types of dividends: (1) 100% franked; (2) partially franked; or (3) 0% franked (also known as unfranked).
A franked dividend has attached to it what is known as a franking credit, which represents the amount of tax that has already been paid on the dividend by the company.
⚠️ Note: If you are based in Singapore,
➡️ Dividends that are 100% franked are NOT subject to Australian income & withholding tax 🥳🥳🥳
➡️ Do read my earlier post to understand about withholding tax & franking:
⭐️ Invest in ASX High Dividend Stocks 🇦🇺: About Withholding Tax
⚠️ Note: If you are based in Australia, do remember you have to hold the stock for a minimum of 45 consecutive days to claim the franking credits.
To know more about CBA’s performance for FY 2022 & the earnings per share forecast for FY 2023, read my earlier post:
⭐️ FY 2022 Earnings Season: Commonwealth Bank Australia 💵💵💵
As usual-🤔💭 Consider POV & Actions of investors + 👩🏻💻👨🏻💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰
@Daily_Discussion(10/8) @TigerStars@CaptainTiger@MillionaireTiger@ASX_Stars@Tiger_AU
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
spk:AU div 5% 4.65 aud. BOQ:AU div 5.8% 7.59 AUD . ANZ div:6% 24.02 aud. CBA div 3.8% 100.34 aud , suncorp div 3.5% 11.14 aud, choose!!