Investors hoping to earn some handy passive income on the side could take a look at ASX 200 bank shares.

Two ASX 200 bank shares that could provide monthly passive income are Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB). In fact, these two have already announced interim dividends for FY23.

ANZ Group Holdings Ltd (ASX: ANZ) is due to report its financial results today, while Westpac Banking Corporation (ASX: WBC) is due to report next week.

Let’s take a look at how I could receive $200 monthly income with Commonwealth Bank and NAB shares.

Could I receive $200 monthly income from CBA and NAB?

Firstly, it’s worth noting the calculations I am looking at reflect dividend payments announced in the last year. Of course, the dividends for these ASX 200 bank shares could change in the future.

Secondly, a $200 monthly income equates to $2,400 in annual income.

Taking a look at Commonwealth Bank of Australia, the biggest of the big four paid an interim dividend of $2.10 in the first half of this year. This followed a $2.10 final dividend in the second half of 2022.

This equates to $4.20 in dividend payments from the CBA overall in the year.

The bank’s share price dropped 7% in the last year and last closed at $95.76.

Based on CBA’s latest share price, this represents a trailing dividend yield of about 4.4%.

Let’s now take a look at the NAB dividend. NAB yesterday announced an interim dividend to shareholders of 83 cents per share fully franked. This will be paid on 5 July 2023.

NAB paid a 78 cents per share final dividend in the second half of last year.

In total, this means NAB is paying $1.61 worth of dividends to investors in a year.

National Australia Bank shares fell 6.41% on Thursday following the release of the company’s results and closed at $26.72 each. NAB shares have fallen nearly 18% in a year.

However, based on Thursday’s closing price, NAB’s dividend yield is 6%.

What would I need to invest to get $200 a month?

If I invest the same amount in both NAB and CBA shares, my average dividend yield would be 5.2%.

So, to generate $200 a month (or $2,400 a year) in passive income with a 5.2% average dividend yield, I would need to invest $46,153.85 in these two shares overall.

Another approach would be to invest $3,846 a month for the next 12 months in these two ASX bank shares.

The post Here’s how I’d aim for $200 a month in passive income using ASX 200 bank shares appeared first on The Motley Fool Australia.

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More reading

• Is the NAB share price in the buy zone after crashing?
• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Genesis Minerals, NAB, oOh!Media, and Super Retail shares are sinking today
• Everything you need to know about the NAB dividend

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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