ANZ Stock: Exploring the Potential for a Breakout from its Multi-Year Slump

Believe it or not, ANZ Group Holdings Ltd (ASX: ANZ) shares have seen little movement in the past 18 years. Priced just over $24, the stock remains nearly the same as in 2006. Despite experiencing highs and lows, including the 2009 global financial crisis and a peak in mid-2015, long-term investors have primarily relied on ANZ's dividends, making it a notable ASX dividend share.

ANZ's Multi-Year Rut: What's Holding It Back?

The ASX ANZ share price has been stagnant, attributed in part to a low earnings multiple compared to its Big Four peers. With a price-to-earnings (P/E) ratio of 10.72, ANZ lags behind competitors like Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and Commonwealth Bank of Australia (ASX: CBA). ANZ faces challenges in its mortgage offerings and struggles in the business banking market.

Can ANZ Break Free?

While ANZ has faced hurdles, its FY23 results showed promise with a 14% increase in cash from continuing operations and a 10% hike in the annual dividend to $1.75 per share. If ANZ sustains positive momentum in 2024 and continues delivering substantial dividends, investor interest may rise, especially for income-seeking investors. Currently, ANZ's 2023 dividend hike offers a trailing yield of 7.23%.

Looking Ahead to ANZ's Future Performance

Key factors to watch in the coming year include ANZ's ability to improve its financials, potentially leading to increased investor confidence. A significant dividend pay rise could attract more investors seeking income opportunities in ASX bank stocks.

Conclusion: Waiting for ANZ's Next Move

As we approach the next year, keeping an eye on ANZ's performance and its impact on shareholder returns will be crucial. The potential for a higher dividend yield may influence more investors to consider ANZ shares, possibly breaking the multi-year stagnation.