ANZ Bank

We like bank shares for one reason. While market is not doing well, the attractive dividend is a bonus to sail through the hard time. When the worst is over, the share price soar and it is time to pocket the profit.

Australian banks are among global banks that did quite well after GFC. They posted positive profit, high dividend payout to shareholders and most importantly, share price broke higher than pre GFC historical high.

We bought Australian & New Zealand Bank share (AU: ANZ). The company reported $7.2 billion profit for this year, paying $0.95 per share to shareholders. At today's closing price at $28.17, this translates to 3.37%. This is only one time payout. ANZ bank releases dividend twice a year, in July and December. In order words, full year dividend is around 6.3%, which is way better than leaving money in savings account.

ANZ Bank focus their business in Australia and New Zealand, as well as the Asia region. We believe slowing economy in Asia might affect ANZ business in near future. Moreover, the higher capital requirement might put ANZ into a challenging environment. Anyway, since the share price retraced from 52 weeks high, also record high at $37.25 to 52 weeks low $26.38, we think it is ok to hold some ANZ shares. Near resistant target at $30-$32. If the share price broke $26, downside support $22.

We'll add our holdings when the price is down. Conversely, reduce the holdings when share price soar.