Shares in Value Logo
Product Review Img Vertical

Date : 25/10/2021

Is This The Right Time To Buy Banking Stocks On ASX?

The ASX is off to a positive start to the week today as Miners and Energy stocks were bullish due to the rebound in commodity prices. The ASX 200 gained 0.3% to 7441 points. The liquidity pumped into markets continues to push the rally.

During this rally, the big 4 banks here in Australia have performed extremely well. CBA shares breached the $100 mark and continues to trade well. Westpac shares have gained 32% in 2021. NAB shares have been on an upward trend since November 2020 and have gained 27% in 2021. ANZ shares have also had a fairly similar run, gaining 24% in 2021 and 43% in the past year.

If you are an income investor on the lookout for new additions to your portfolio, check out the banks listed below. During a period of uncertainty, it might be wise to consider dividend stocks. These top banks provide above-average yields in the coming years. Here is what you need to know about these dividend shares:

Westpac (ASX: WBC)

The Aussie banks have been back in favour for a while now. The low-interest-rate environment and reduced regulations around lending have resulted in WBC being able to increase its lending business. It has been a promising start to FY21 with increased cash earnings, growth in mortgages and continued balance sheet strength. First-half earnings were considerably higher than the prior corresponding period, mainly due to an impairment benefit reflecting improved asset quality and a better economic outlook. New lending for housing has surged, up 49 per cent over the past year, including a 75 per cent jump from the May 2020 low. Westpac announced an interim dividend of 58 cents a share in light of the positive performance where statutory net profit increased by 189% to $3.4 billion, compared to the previous corresponding period.

We have seen WBC shares performed relatively well given the recent tumultuous market volatility. What we like about this bank is its solid balance sheet. Furthermore, Westpac is also embarking on a strategy to cut costs which should result in increased profitability and thus increased dividends for WBC shareholders. WBC shares currently trade at $26.07 a share with a solid dividend yield of 3.40%. Furthermore, since the beginning of this year, WBC shares have appreciated by an impressive 32%.

National Australia Bank Ltd (ASX: NAB)

NAB is part of the big 4 Aussie banks. The banks have been performing extremely well in challenging operating conditions. NAB shares are now trading around levels seen before the pandemic. Increased lending to retail customers and businesses has increased as the government’s stimulus and deregulations around lending have done their bit. The increased lending has offset the low-interest rate and NAB has been able to perform well.

More importantly, dividends are back for the banks, and this has caused investors to become upbeat about the banks once again. Recently, NAB also announced its intention to buy back up to $2.5 billion of its ordinary shares on-market to progress managing its Common Equity Tier 1 (CET1) towards its target range of 10.75–11.25%. NAB shares have been brought back since earlier this month and the NAB stock has been one of the top-quality blue-chip stocks to consider for some time now.

NAB could be the ideal allocation to increase income in your portfolio. Hence, the bank is offering a solid dividend yield of 3.26%. Moreover, its share price is pretty solid as well. The recent broad market pullback could be an opportunity to grab some NAB shares. NAB shares are currently traded at $28.38 apiece. Year-to-date NAB is also quite a winner, with its shares appreciated by 27% year-to-date.

Are You Looking To Buy The Best Stocks In 2024?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2024!


Top 5 ASX Stocks
to Buy for Capital Growth in 2024

Shares In Value - Top 5 ASX Stocks to Buy - Cover 2024
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.
ASX insight Stocks Landing

Download Your Free Report

By downloading this report, you agree to our terms and conditions and privacy policy

Scroll to Top


By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Income Stocks - Blogs

Please fill in your details to download the free dividend shares report.

By downloading this report, you agree to our terms and conditions and privacy policy

Just 10 Seconds Away From Your Free Report!
Income Stocks - Popup Blog

Please fill in your details to download the free dividend shares report.

By clicking 'Download Report', I accept the Privacy Policy and Member Terms & Conditions.

We will send your report instantly. Please put your correct email address and phone number.