Westpac claims title of highest-yielding ASX bank share

In recent developments from the Australian Securities Exchange (ASX) banking sector, Westpac Banking (NYSE:) Corp (ASX: WBC) has superseded ANZ Group Holdings Ltd (ASX: ANZ) to become the highest-yielding ASX bank share among the big four. As of Friday, Westpac shares offer a dividend yield of 6.13%, slightly higher than ANZ’s 6.03% yield. National Australia Bank (OTC:) Ltd (ASX: NAB) and Commonwealth Bank of Australia (OTC:) (ASX: CBA) trail behind with yields of 5.43% and 4.37%, respectively.

The shift in yields is largely attributed to the sluggish performance of Westpac’s share price, which has declined by 3.8% year-to-date in 2023. In comparison, ANZ shares have risen by a robust 11.56%. Meanwhile, NAB and CBA have experienced modest growth, with NAB’s shares increasing by 0.7% and CBA’s shares rising by 2% in the same period.

Dividend yield is determined by two factors: the raw dividends per share that a company pays out and the company’s share price. A falling share price can boost a company’s dividend yield if it maintains its annual dividend payout. Therefore, Westpac’s acquisition of the ‘highest-yielding ASX bank share’ title could be seen as a reflection of its underperforming share price rather than an honorable achievement.

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