Shares in the big four ASX banks form a core part of many dividend investors’ portfolios. Which ASX bank is currently yielding the highest dividend after a tumultuous year for these traditionally solid dividend payers?
National Australia Bank
Of the big four ASX banks, National Australia Bank Ltd (ASX: NAB) was the first ASX bank to cut its dividend. Back in April, NAB cut its 2020 interim dividend by 64% to 30 cents per share.
NAB will pay a 2020 final dividend of 30 cents per share in December, maintaining its 64% cut. This means that at the time of writing, NAB shares are yielding a trailing 2.57%.
ANZ
Australia and New Zealand Banking Group Ltd (ASX: ANZ) joined fellow ASX bank NAB in cutting its interim dividend by 69% to 25 cents per share after suspending its dividend in April.
ANZ will pay a slightly larger 2020 final dividend of 35 cents per share in December, a reduction of 56% from 2019. ANZ shares, at time of writing, are trading with a 2.62% trailing dividend yield.
Westpac
Westpac Banking Corp (ASX: WBC) completely cancelled its 2020 interim dividend, citing the uncertainty of the impact the COVID-19 pandemic will have on bad debts.
Westpac resumed paying dividends for the 2020 final dividend, declaring a dividend of 31 cents per share, representing a 60% cut from its 2019 final dividend of 80 cents per share. Westpac shares currently trade with a meagre 1.52% trailing dividend yield.
Commonwealth Bank of Australia
Finally, investors in the Commonwealth Bank of Australia (ASX: CBA) came out of 2020 slightly lucky. CBA pays dividends slightly out of sync with the other ASX banks, paying out its 2020 interim dividend in March of this year.
The dividend of $2.00 per share would have been welcomed by dividend investors as they snuck in dividend income before the COVID-19 pandemic slashed dividends across the market. CBA then cut its 2020 final dividend by 58% to 98 cents per share, down from $2.31 per share in 2019. At the time of writing, CBA trades with a trailing dividend yield of 3.70%.
What’s the verdict?
With CBA shares currently yielding 3.70%, this ASX bank has rewarded dividend investors the best in 2020. Although as COVID-19 has only impacted one not two dividend payments for CBA, this trailing yield is not really a fair comparison to the other ASX banks.
ANZ is yielding slightly better than NAB at 2.62% compared to 2.57%. Westpac has performed the worst of the big four ASX banks with a trailing dividend yield of 1.52%, even being beaten by Macquarie Group Ltd (ASX: MQG) which currently has a dividend yield of 2.29%.
