new anz convertible preference shares, page-15

Before investing in the ANZ hybrids I think it is important to understand your after tax required return.

If you are a SMSF you can use the franking credits to add to your income.

I would expect that over the next 1 - 4 years official interest rates will increase to 5% - 6% which means that I could expect a return of 8.10% - 9.10% if ANZ can record $1.00 or profit every year.

As my required return return is 7% - 10% it is a no brainer to invest in these as I am very confident that ANZ will be able to record $1.00 of profit.

I also hold ANZ for capital growth plus other stocks such as ALS, APA, AGK, BPT, FLX, MAH, OZL, etc etc etc.

Good luck to all