Westpac Banking Corp (ASX: WBC) shares are ones to consider if youâre looking for reliable passive income.
The S&P/ASX 200 Index (ASX: XJO) bank stock has paid two annual fully franked dividends for many years. The one exception is the pandemic addled year of 2020 when the bank gave its interim dividend a miss.
The past yearâs passive income payments will go some way towards repairing the bankâs share price slide.
After closing down 2.6% yesterday at $21.13 per share, the stock is down 13% over the past 12 months.
How much passive income did investors receive from Westpac shares?
Westpac shares delivered a final dividend of 64 cents per share on 20 December.
The board declared an interim dividend of 70 cents per share when the bank released its half-year results on Monday. With profits up 22% year on year to $4 billion, the board increased the interim dividend by 15% from the prior year.
The stock traded ex-dividend yesterday, which helps explain its underperformance on the day. A companyâs share price often falls in line with its dividend on the day shares trade without the rights to that payout.
Stockholders can expect that interim dividend to hit their bank accounts on 27 June.
That means investors will receive a total of $1.34 in passive income from each Westpac share over the past 12 months.
That works out to a trailing yield of 6.4% for investors who bought in at the current share price.
Or just about $318 in passive income from a $5,000 investment.
What if you bought Westpac shares in June?
June was a tough month for most ASX 200 stocks.
Westpac shares were no exception.
The stock traded at a closing low of $19.19 on 17 June.
Brave or well-advised investors who snapped up shares on the day will be sitting on share price gains of 10%.
Perhaps even better, theyâll be earning significantly more passive income.
At that price, Westpac shares traded on a yield of 7%.
Meaning youâd already have netted a handy $349 and change from that $5,000 investment.
The post Snapped up $5,000 worth of Westpac shares on the June dip? Hereâs the passive income youâre earning now appeared first on The Motley Fool Australia.
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More reading
- The top 10 ASX shares held by millionaires
- These ASX 200 dividend stocks are highly rated for a reason
- Why Appen, CSR, Silver Lake, and Westpac shares are falling
- Why is the Westpac share price sinking today?
- 5 things to watch on the ASX 200 on Thursday
Motley Fool contributor Bernd Struben 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 recommended Westpac Banking Corporation. 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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