ANZ Long-Term Hold Investment Thesis - Good or Bad?

Hi,

Just wondering, for the long-term holders of ANZ here, what is your investment thesis for still holding onto this stock despite the recent share price corrections?

For me, ANZ is the only bank holding in my portfolio and it contributes a significant amount of grossed-up dividends which is required to pay expenses. So on this basis it is still a compelling hold as I can't find any other stock (that I like) that gives me this amount of dividends for my capital. I already hold TLS and WES and am not keen on having any more banks, WOW, BHP, RIO or insurance companies. I hold a mix of large and mid-caps, but mostly mid-caps and a few large-caps in my family trust portfolio.

I also think that although the ANZ dividend may not grow as much it has in the past, it should be relatively stable and at worse reduce by a small amount in the short-term, and I feel that the current high grossed-up yield (and my grossed-up yield on purchase price) compensates me enough for this risk.

In addition to this, I feel that given the generally negative outlook for the banks and the economy in general, ANZ's strategy to differentiate itself from the other banks by having a strong NZ franchise and an Asian strategy, though higher risk in someways, is almost necessary in the current climate. They have to take some risk to protect long-term earnings and earnings growth or beholden to our domestic economy. Which is why I also like TLS for having a crack in Asia, and also WES for having Coles/Bunnings/Kmart/Target all contributing somewhat meaningfully to diversify earnings rather than basically just food/liquor in the case of WOW.

And although some commentators are suggesting ANZ's Asian strategy has already failed, I wonder whether this is too premature and short-term focussed, as the Asian investment theme takes a much longer time to play out and see the true benefits of and moves past any short-term issues?

Interested in your thoughts on this view and any opposing views.

And if any long-term holders of ANZ have now decided to sell out, and if so have you replaced it with something else to replace the lost dividend income stream?

Thanks!