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You may have heard there was a royal commission and remediation costs ... ONE off costs lowered NPAT.

WBC paid out 1.88 in dividends for many years, its now $1.60 ...
It just raised capital to fix the balance sheet.

Whilst AUSTRAC thing may cause another year of costs, LOWER one off costs as the remediation costs were massive, at worst ... maybe $1.50 dividend so 6% yield at $25 fully franked verses likely cash rate of 0.5%.

Obviously we are lower, and I add and will add as and if it goes lower.

What the current payout ratio is ... this year ... is irrelevant given the outcome and costs involved with the royal commission.

Just checked and payouts alone are 958 million and overall cost about 1.5 billion so that effected ratios in the extreme in 2019. I would stress yet again the dividend is NOW $1.60 NOT $1.88 and yes the fine is unknown at this stage, its possible Westpac having informed AUSTRAC many months ago about some of the issues is legally on very strong ground to get a LOWER fine than CBA not higher.

I suspect that is of course unlikely, and whilst not so happy, its unlikely other than a blip ... all be it a a billion dollar blip for now.

Either way, dividend at $1.60 or $1.50 longer term its yielding a lot more than the other big 3 banks.

As such, either the shed 10% in price or WBC is about 5% too cheap even with the fleas it has.

Only time will tell and with the USA market at all time highs, ignoring any and all bad news slowly slowly ... adding for me. The delusional rally of the USA based more upon a threat of even more tax cuts for the rich and ignoring a 1.05 trillion deficit and 23 trillion in debt ... which to be blunt scares me.

We have our banking sector near CPI adjusted lows of the post GFC era yet the majority of world stocks are at all time highs.

<blockquote data-quote="kahuna1" data-source="post: 1047341" data-attributes="member: 30">You may have heard there was a royal commission and remediation costs ... ONE off costs lowered NPAT.WBC paid out 1.88 in dividends for many years, its now $1.60 ...It just raised capital to fix the balance sheet.Whilst AUSTRAC thing may cause another year of costs, LOWER one off costs&nbsp; as the remediation costs were massive, at worst ... maybe $1.50 dividend so 6% yield at $25 fully franked verses likely cash rate of 0.5%.Obviously we are lower, and I add and will add as and if it goes lower.What the current payout ratio is ... this year ... is irrelevant given the outcome and costs involved with the royal commission.Just checked and payouts alone are 958 million and overall cost about 1.5 billion so that effected ratios in the extreme in 2019. I would stress yet again the dividend is NOW $1.60 NOT $1.88 and yes the fine is unknown at this stage, its possible Westpac having informed AUSTRAC many months ago about some of the issues is legally on very strong ground to get a LOWER fine than CBA not higher.I suspect that is of course unlikely, and whilst not so happy, its unlikely other than a blip ... all be it a a billion dollar blip for now.Either way, dividend at $1.60 or $1.50 longer term its yielding a lot more than the other big 3 banks.As such, either the shed 10% in price or WBC is about 5% too cheap even with the fleas it has.Only time will tell and with the USA market at all time highs, ignoring any and all bad news slowly slowly ... adding for me. The delusional rally of the USA based more upon a threat of even more tax cuts for the rich and ignoring a 1.05 trillion deficit and 23 trillion in debt ... which to be blunt scares me.We have our banking sector near CPI adjusted lows of the post GFC era yet the majority of world stocks are at all time highs.</blockquote>

[QUOTE="kahuna1, post: 1047341, member: 30"] You may have heard there was a royal commission and remediation costs ... ONE off costs lowered NPAT. WBC paid out 1.88 in dividends for many years, its now $1.60 ... It just raised capital to fix the balance sheet. Whilst AUSTRAC thing may cause another year of costs, LOWER one off costs as the remediation costs were massive, at worst ... maybe $1.50 dividend so 6% yield at $25 fully franked verses likely cash rate of 0.5%. Obviously we are lower, and I add and will add as and if it goes lower. What the current payout ratio is ... this year ... is irrelevant given the outcome and costs involved with the royal commission. Just checked and payouts alone are 958 million and overall cost about 1.5 billion so that effected ratios in the extreme in 2019. I would stress yet again the dividend is NOW $1.60 NOT $1.88 and yes the fine is unknown at this stage, its possible Westpac having informed AUSTRAC many months ago about some of the issues is legally on very strong ground to get a LOWER fine than CBA not higher. I suspect that is of course unlikely, and whilst not so happy, its unlikely other than a blip ... all be it a a billion dollar blip for now. Either way, dividend at $1.60 or $1.50 longer term its yielding a lot more than the other big 3 banks. As such, either the shed 10% in price or WBC is about 5% too cheap even with the fleas it has. Only time will tell and with the USA market at all time highs, ignoring any and all bad news slowly slowly ... adding for me. The delusional rally of the USA based more upon a threat of even more tax cuts for the rich and ignoring a 1.05 trillion deficit and 23 trillion in debt ... which to be blunt scares me. We have our banking sector near CPI adjusted lows of the post GFC era yet the majority of world stocks are at all time highs. [/QUOTE]

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