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.

Introduction

Welcome to the Dividend Man. My name is John King.

Most investors want their investments to grow so they can finance their desired lifestyle. Which line on the chart would you like your investments to follow?

Did you choose the solid line? It looks a lot more successful than the dotted line.

The graph shows the results of two different investing strategies on the Australian stock market, from June 2000 to June 2013:

• The solid line shows the value of an investment in dividend-paying companies. The portfolio of the dividend paying companies tripled in value over the 13 years.
• The dotted line shows the result of investing in companies which did not pay dividends. The portfolio of non-dividend companies fell 30% over the same period.

It was research like this which increased my understanding of the importance of dividends to successful investing, and led me to become the Dividend Man. I want you to also benefit from my research.

The Dividend Man will provide information from ongoing research, as well as updates on dividends being paid by Australian companies.

Comments and questions, as well as suggestions for blog topics are very welcome.