Coles Group Ltd (ASX: COL) shares just became an even more attractive passive income buy.
The S&P/ASX 200 Index (ASX: XJO) supermarket giant delivered the good news to investors this morning with the release of its full year FY 2026 results.
With full year profits and revenue rising, Coles lifted its final dividend payout by more than 15% from last year.
Now, if you follow along with Coles shares, you’ll know this stock has long been popular with passive income investors for its lengthy track record of paying two fully franked dividends per year. Even during the pandemic-addled year of 2020.
And while there are higher yielding stocks, Coles shares, currently trading for $22.43 apiece, have also gained around 8% over the past 12 months. That’s worth keeping in mind, as even a high-yielding ASX stock that loses significant share price value could see your wealth go backwards.
Before we dig into the numbers, also be aware that one of the two figures we’re using below come from Cole’s interim dividend, which was paid out on 30 March.
That means we’re working partly with the pending dividend yield and partly with a trailing yield. Future yields may be higher or lower depending on a range of company specific and macroeconomic factors.
With that in mindâ¦
Buying Coles shares for a $5,000 annual passive income
Coles paid a fully franked 41 cents per share interim dividend in March.
Today, the ASX 200 supermarket declared a fully franked 37 cents per share dividend.
If you want to bank that passive income payout, you’ll need to own Coles shares at market close on 2 September. The stock trades ex-dividend on 3 September. You can then expect to see that Coles dividend land in you bank account on 22 September.
In total then, Coles has (or shortly will have) paid out 78 cents in fully franked dividends over the past year. That’s up 13% from the company’s FY 2025 payouts.
So, for you $5,000 yearly passive income stream, you’d need to buy 6,411 shares today.
At the current share price, that represents an investment of $143,799.
Coles shares trade on a fully franked dividend yield of 3.5%. Taking those franking credits into account, the ASX 200 stock trades on a grossed-up yield of 5.0%.
What’s the latest from the ASX 200 supermarket?
For FY 2026, Coles reported a 2.8% year on year increase in sales revenue to $45.58 billion.
And driving the increased passive income payout, the company achieved a 13.7% lift in net profit after tax (NPAT) to $1.26 billion (excluding significant items).
The post How many Coles shares do I need to buy for $5,000 a year in passive income? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Coles Group right now?
Before you buy Coles Group shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Coles Group wasn’t one of them.
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* Returns as of 1 August 2026
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More reading
- Why is everyone talking about Coles, Ramelius Resources and Woodside shares on Tuesday?
- Coles Group grows profit and dividend as Supermarkets shine in FY26
- 5 things to watch on the ASX 200 on Tuesday
- 7 ASX 200 shares with reaffirmed buy ratings this week
- Is the Coles share price good value?
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 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.