Two Bank Dividends (ANZ & NAB)

Two of Australia's biggest banks, ANZ and NAB, this week announced dividends for their financial years which ended on 30 September 2013.

ANZ Bank (ANZ)

On Tuesday ANZ declared a fully franked dividend of 91 cents per share to be paid on 16 December 2013. The total dividend, including franking credits, is $1.30 per share (91 cents cash + 39 cents franking credits). This is an increase of 17 cents (12c cash + 5c franking credits) over the dividend paid in December 2012.



The shares trade ex-dividend on 7 November 2013. A shareholder must own ANZ shares at the close of trading on 6 November in order to receive the dividend.

The full-year dividends for 2012/13 total $2.34 ($1.64 cash + $0.70 franking credits), which is 13% higher than last year.

Last 10 Years Dividends (2002/03 to 2012/13)

The chart shows the dividends from 2003 to 2013.

The most remarkable features of ANZ's dividends for the past decade are:

• Full-year dividends increased by 72% in 10 years (5.6% p.a.). 
• Dividends grew faster than inflation of 31% over the decade (2.7% p.a.).
• Dividend growth was slightly slower than the 78% average growth for Australian dividend-paying companies.
• Dividends grew strongly from 2003 to 2007, rising 43% (9.4% p.a.) from 95 cents to $1.36 (cash dividends).
• Dividends levelled out in 2008 before the global financial crisis (GFC) caused a 25% fall in 2009. Cash dividends in 2009 were just 1 cent higher than five years earlier in 2004.
• ANZ took only two years before dividends in 2011 had passed the pre-GFC record dividends of 2008.
• Since 2009 dividends have increased 60%, with 2013 dividends being 21% higher than in 2008.
• Dividends were increased in 8 years, unchanged in one year, and reduced in one year.

National Australia Bank (NAB)

Today NAB declared a fully franked dividend of 97 cents per share to be paid on 18 December 2013. The total dividend, which includes franking credits, is $1.38 per share (97 cents cash + 41 cents franking credits). This is an increase of 10 cents (7c cash + 3c franking credits) over the dividend paid in December 2012.

The shares trade ex-dividend on 7 November 2013. A shareholder must own NAB shares at the close of trading on 6 November in order to receive the dividend.

The full-year dividends for 2012/13 total $2.71 ($1.90 cash + $0.81 franking credits), which is 5.5% higher than last year.

Last 10 Years Dividends (2002/03 to 2012/13)

The chart shows the dividends from 2003 to 2013.

The most remarkable features of NAB's dividends for the past decade are:

• Full-year dividends increased by 16% in 10 years (1.5% p.a.).
• Dividends have not kept up with inflation, which was 31% over the decade (2.7% p.a.).
• Dividend growth was much weaker than the 78% average growth for Australian dividend-paying companies.
• The 25% reduction in 2009 from the GFC resulted in dividends being 10% lower than six years earlier in 2003
• Despite a 30% recovery in dividends since 2009, NAB shareholders are getting dividends in 2013 which are 2% below the pre-GFC dividends of 2008.
• Total dividends were increased in 8 years and reduced in two years.
• Franking credits fell from 100% to 80% in 2005. Even though cash dividends were unchanged the reduction in franking credits reduced the value of the dividends to Australian shareholders.
• Franking credits were less than 100% in the three years 2005 to 2007.