Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Is Bendigo Bank’s (BEN) 6% Dividend Yield Too Good To Ignore?

Bendigo and Adelaide Bank Limited (ASX: BEN) is often the forgotten Australian bank but just like its better-known peers, the bank tends to offer dividend-hungry shareholders a very lucrative alternative to falling term deposit rates.

Australia’s 5th Retail Bank

Bendigo and Adelaide Bank was formed following the merger of Bendigo Bank and Adelaide Bank in November 2007. The bank operates primarily within the retail banking space and has a network of more than 500 branches and agencies across Australia, predominantly on the east coast and South Australia.

Bendigo Bank has done a wonderful job marketing itself as the ‘community bank’ which has resonated with customers who tend to turn their nose up at the bigger banks.

How The Dividend Stacks Up

Bendigo and Adelaide Bank shares currently trade with a trailing dividend yield of 6.1%. This is supported by very healthy cash profits and compares favourably against two of its biggest peers, Australia and New Zealand Banking Group (ASX: ANZ) and Commonwealth Bank of Australia (ASX: CBA) which trade on a dividend yield of 5.9% and 5.3% respectively.

What About The Slowing Economy?

Depending on who you listen to, you could range from very optimistic to disturbingly pessimistic when it comes to the economic outlook for Australia. Cooling house prices, stagnant wage growth, eye-watering debt levels and wavering confidence are all potential headwinds for the economy generally and the banks more specifically. However, the recent tax cuts along with the lowering of the RBA cash rate may provide the impetus the economy needs to continue its march onwards and upwards.

With term deposit rates crashing to all-time lows bank shares are a favourite for investors looking for potential dividend income. Maybe its time we broadened the discussion to include Australia’s oft-forgotten retail bank?

[ls_content_block id=”14945″ para=”paragraphs”]

Disclosure: At the time of publishing, Luke has no financial interest in any companies mentioned.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content