Highlights from morgan stanley..., Firstly, the broker doesn’t believe dividends will return to FY19 levels until sometime after FY22 as dividends forecast for that year will still be around 25% lower than last financial year.
the ASX big bank with the best forecast dividend for FY21 is Westpac Banking Corp (ASX: WBC).The broker is tipping a $1.05 a share distribution for the next financial year, and that increases to $1.20 in FY22.This gives Westpac a net yield of 5.8% in FY21 and 6.6% the following year. Throw in the franking and the gross yield shoots up to 8%-9%.How the other banks’ dividends compareNext on the dividend leader board is Australia and New Zealand Banking GrpLtd (ASX: ANZ). The stock is sitting on an expected net yield of 5.6% in FY21 and 6.7% in FY22. National Australia Bank Ltd. (ASX: NAB) is in third place with a net yield of 5.1% next year and 5.9% in FY22, while Commonwealth Bank of Australia (ASX: CBA) is sitting on an expected yield of 4.9% and 5.4% for the two years, respectively..The yields can change as bank share prices fluctuate, so WBC may not hold on to its crown next week...even CBA’s gross yield (lowest of the lot) of 7% is looking quite appealing in this record low interest rate environment.
WBC Price at posting:
$18.17 Sentiment: Hold Disclosure: Held
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