There is no doubting that the Big Four banks are hugely popular among Australian investors.
As at last year’s annual reports, Commonwealth Bank (CBA) had 795,000 shareholders; Westpac (WBC) had 572,000; National Australia Bank (NAB) had 476,000 and ANZ had 443,000. The banks are core holdings for many retail share portfolios.
There is a very good reason for this: the banks have been strong generators of both capital growth and dividend yield. For self-managed super fund (SMSF) investors, the bank stocks are major generators of dividend flow.