If I invest $8,000 in Telstra shares, how much passive income will I receive in 2027?

Telstra Group Ltd (ASX: TLS) shares may be one of the most popular dividend options due to the company’s perceived stability and dividend yield.

The ASX telco share usually has a higher dividend yield than the ASX bank shares of Commonwealth Bank of Australia (ASX: CBA) and Macquarie Group Ltd (ASX: MQG), though typically lower than names like Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ).

Telstra has consistently increased its annual payout since the onset of the inflationary period in FY22.

Plus, the FY26 half-year result was yet another example of the bank providing investors with stability and growth – it hiked its interim dividend by 10.5% to 10.5 cents per share.

The HY26 result also showed the business is capable of growing earnings. It reported total income of 0.2% to $11.8 billion, operating profit (EBITDA) rose 4.7% to $4.4 billion, net profit for Telstra shareholders increased 9.4% and earnings per share (EPS) climbed 11.2%.

The cash profit was particularly good. Cash operating profit (EBIT) rose 14%, cash earnings grew 17%, and cash EPS increased 19.7%.

In this article, we’re going to look at the annual FY27 dividend, which will be paid in 2027.

2027 dividend projection for owners of Telstra shares

According to the projection on CMC Invest, the ASX telco share is projected to pay an annual dividend per share of 22 cents in the 2027 financial year.

At the time of writing, this forecast translates into a dividend yield of 4.4% excluding franking credits and a grossed-up dividend yield of approximately 6.1%, including franking credits.

If someone were to invest $8,000 in Telstra, they would be able to buy 1,603 Telstra shares (with a little bit of money left over).

With those 1,603 Telstra shares, investors could receive $352.66 of cash and approximately $136.03 franking credits.

Is this a good time to invest in the ASX telco share?

According to CMC Invest, there have been six analyst ratings calls on the business in the last three months.

Of those six, one was a buy rating and five were hold ratings. So, the investment professionals are largely neutral on the appeal of the company’s valuation right now.

The average price target of those six ratings is $5.33. That means, collectively, those analysts are predicting the Telstra share price could climb by around 7% within the next year (at the time of writing).

The Telstra share price was above $5.33 earlier this year, though it has clearly dropped back since then.

Telstra looks like a solid option for dividends, though there seem to be more compelling ASX shares out there to buy.

The post If I invest $8,000 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.