Ticker: ANZBY, Buy below $22.
The Australia and New Zealand Banking Group Limited, is the second largest bank by assets in Australia.
Why I Would Buy
- Yield – ANZBY yields more than 5% at current prices.
- Cheap – Currently sells at close to 12 times forward earnings.
- Return on Equity – ANZBY has maintained a RoE in excess of 10%for past many years.
- Credit Ratings – Strong investment grade ratings on long term debt: AA-/AA3/AA- by the top 3 ratings agencies.
- Currency Diversifier – A USD hedge.
What Could Go Wrong
- High Payout – Pays out > 80%.
- Dog –ANZBY has traded almost flat for the past 3 years.
Disclosure: I am long ANZBY, please read additional disclosures here before taking any action based on this post.