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

1. Yield – ANZBY yields more than 5% at current prices.
2. Cheap – Currently sells at close to 12 times forward earnings.   
3. Return on Equity – ANZBY has maintained a RoE in excess of 10%for past many years.
4. Credit Ratings – Strong investment grade ratings on long term debt: AA-/AA3/AA- by the top 3 ratings agencies.
5. Currency Diversifier – A USD hedge.

What Could Go Wrong

1. High Payout – Pays out > 80%.
2. 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.