If I invest $5,000 in Telstra shares, how much passive income will I receive in 2027?

Telstra Group Ltd (ASX: TLS) shares are one of the best examples of blue-chip passive income producing shares within the S&P/ASX 200 Index (ASX: XJO), in my view.

The telecommunications business has a leading position in Australia thanks to its mobile network. It has the most subscribers, the widest network coverage and high-quality spectrum assets.

It has invested significantly in its 5G network over the last few years, which has put it ahead of its rivals. That’s one of the reasons why Telstra is the network of choice for a number of smaller telcos.

Now the business is capitalising on its network strength and this is playing out in its financials.

More passive income growth

Telstra recently reported its result for the six months to 31 December 2025.

It reported that its key mobile division delivered 4% revenue growth to $5.8 billion and 4% operating profit (EBITDA) growth to $2.7 billion. It saw a 5.1% year-over-year increase of the average revenue per user (ARPU) to $45.47 and a 135,000 increase in mobile handheld users compared to the second half of FY25.

That helped Telstra’s overall financials – total income increased 0.2%, EBITDA grew 4.7%, earnings before interest and tax (EBIT) climbed 9.2% and earnings per share (EPS) rose 11.2% to 9.9 cents. Cash EPS jumped 19.7% to 14 cents.

This solid level of EPS growth allowed the board of directors to increase its dividend per share by 10.5% to 10.5 cents per share.

That dividend growth led analysts to increase their forecasts for Telstra’s passive income payout in FY26. Let’s take a look at how that could play out with a $5,000 investment.

Potential dividends for owners of Telstra shares

The broker UBS forecasts that the business could increase its FY26 annual payout to 21 cents per share, which would be a year-over-year increase of 10.5% – a very pleasing dividend growth rate for a business that’s so large already.

The projected dividend payout would translate into a dividend yield of 4.1% (excluding franking credits). Time will tell what level of franking comes with the final FY26 dividend – the interim dividend was only approximately 90% franked.

If someone were to invest $5,000 into Telstra shares (or already own that much), in terms of the passive income dollar amount, that would translate into a cash payment of $205, plus whatever franking credits are attached with the FY26 annual dividend.

The business has a goal of a “sustainable and growing dividend (prefer fully-franked)”, which bodes well for future dividend payouts and makes it an exciting option for passive income.

The post If I invest $5,000 in Telstra shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.