Here's the dividend forecast out to 2028 for ANZ shares

ANZ Group Holdings Ltd (ASX: ANZ) shares have been a generous choice for passive income in the past. It could deliver rewarding dividends in the years ahead.

ASX bank shares can usually provide investors with a good dividend yield thanks to a combination of a relatively high dividend payout ratio and a relatively low price/earnings (P/E) ratio.

Dividends aren't guaranteed of course, but some businesses are more capable of providing consistent payouts than others.

Let's see what analysts expect in terms of passive income from the ASX bank share in the years ahead.

FY26

The ANZ 2026 financial year recently ended, but we don't yet know the full-year dividend.

It has been a volatile year of economic conditions, with rising interest rates, elevated inflation, a high cost of living, increasing bond yields, a growing risk of worsening loan arrears and weaker credit demand.

The latest update from the bank was its third quarter of FY26. Which saw $1.95 billion of statutory net profit and $1.9 billion of cash profit. The cash profit grew by 2% year-over-year, while profit before provisions increased by 3% to $2.8 billion.

While operating income declined 1%, operating expenses fell 4%. The provision charge worsened by 6%.

ANZ said in its FY26 third-quarter update that it remains on track to achieve its return on tangible equity (ROTE) and cost-to-income targets. The ASX bank share said it continues to improve productivity margins and business volumes.

The ASX bank share has been working on a number of other goals.

The bank also noted that it has embedded a new leadership team to drive a cultural reset.

Second, it wants to integrate Suncorp Bank faster to deliver value. ANZ said it remained on track to be 57% complete by the end of September 2026.

Third, it wants to accelerate the delivery of its single-customer digital front-end.

Fourth, it wants to reduce duplication. ANZ said that 84% of an announced 3,500 roles had exited by June 2026. It also said that 73% of estimated gross cost savings of $875 million were realised as at the end of June 2026.

According to the projection on CMC Invest, the bank could pay an annual dividend per ANZ share of $1.66 – the same as it has done over the last few years.

FY27

Owners of ANZ shares will see how the bank performs in the current financial environment. Will bad debts increase? Could the higher interest rate environment boost its lending profitability (the net interest margin (NIM))? How long will weaker credit demand persist?

Analysts think the ASX bank share's earnings and dividend could increase a little in the 2027 financial year. While every shareholder would prefer strong growth, I think even a little growth would be welcome.

According to the projection CMC Invest, the bank's annual dividend could rise by 2.1% to $1.695.  

FY28

Depending on how the economic picture evolves, 2028 could be the year that interest rates start declining again, which could help boost credit demand and reduce the financial stress on borrowers.

According to the projection for FY28, owners of ANZ shares could see a 2.6% increase of the annual dividend to $1.74.

That means, at the time of writing, investors could receive a FY28 dividend yield of 4.5% excluding franking credits and 5.9% including franking credits.

ANZ is a solid business and is doing the right things to grow earnings, but forecast growth is slow, and the FY28 payout isn't particularly large. Other ASX stock ideas could generate more attractive returns.

The post Here's the dividend forecast out to 2028 for ANZ shares appeared first on The Motley Fool Australia.

Motley Fool contributor Tristan Harrison 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.

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