The Australia and New Zealand Banking Group (ASX: ANZ) share price is up 6.3% in early trading.
ANZ is a leading Australian and New Zealand banking institution, with a presence throughout the oceanic region. ANZ is one of the Big Four Aussie banks and derives much of its revenue from mortgages, personal loans and credit.
Why The ANZ Share Price Is Rising
In what could be the best day for the major ASX banks this year, ANZ shares are up a lot in response to the Australian Federal Election.
In a show of just how much retirees are attracted to the ASX banks for their fully franked dividends, all of the major banks are up more than 5%.
Franking credits can be a sizeable part of the return because they boost the dividend yield. For example, if a bank has a fully franked dividend yield of 7%, the franking credits add another 3% to the annual return income return.
If Labor’s removal of franking credit refunds policy had become reality it would have led to some investors losing some of their income.
That’s why the Commonwealth Bank of Australia (ASX: CBA) share price is up 5.8%, the Westpac Banking Corp (ASX: WBC) share price is up 8% and the National Australia Bank Ltd (ASX: NAB) share price is up 7.6%.
However, interestingly the Telstra Corporation Ltd (ASX: TLS) share price is down 0.8%, so it’s not viewed as the dividend share it once was.
Although ANZ shares are still worth more to retirees, the retention of the franking credit system will not boost the ANZ profit or other operational statistics.
Is ANZ A Buy?
A Liberal win may boost the confidence of property buyers, particularly investors, with no changes to negative gearing.
So, ANZ’s woes with falling house prices may be somewhat helped, but I can’t see it making a huge change over the longer term compared to the next couple of weeks.
I would rather invest in the quality and proven ASX shares in the free report below than ANZ. The election result has been more than accounted for with its rise today.
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