How many Westpac shares do I need to buy for $8,000 of passive income?

Westpac Banking Corp (ASX: WBC) shares may be one of the more popular options for dividends on the ASX.

ASX bank shares can provide investors with a pleasing dividend yield because of a combination of factors.

Banks typically have a relatively low price/earnings ratio (P/E) ratio, meaning a low earnings multiple.

Secondly, banks like Westpac usually have a generous dividend payout ratio. The ASX bank share is paying out a majority of its net profit each year to shareholders.

Let’s look at what Westpac is predicted to pay, which will then inform us how many Westpac shares it would take to unlock $8,000 of passive income.

Dividend projection for the ASX bank share

The ASX bank share’s 2026 financial year is nearly over, so it could be interesting to see what’s predicted for the FY26 annual payout.

But this article will focus on the FY27 annual payout, as investors have already received half of the FY26 payout as an interim dividend.

According to the projection on Commsec, the ASX bank share is predicted to pay an annual dividend per Westpac share of $1.54 in FY26. That translates into a grossed-up dividend yield of 6.3%, including franking credits, at the time of writing.

Time will tell what the board of directors actually do with the Westpac dividend, which will be influenced by the profit that the ASX bank share reports.

Pleasingly for shareholders, the business is predicted to deliver a slightly larger payout in the 2027 financial year, with a year-over-year increase of 0.6% to $1.55 per share. At the time of writing, that translates into a dividend yield of 4.4% excluding franking credits and slightly above 6.3% including franking credits.

$8,000 of passive income from Westpac shares

It will certainly take a sizeable investment to bring that passive income goal to life.

$8,000 would certainly be a lot of passive income from just one stock, but it is possible – it would just require enough of the ASX bank share.

If we assume the ASX bank share does indeed pay an annual dividend per share of $1.55 in FY27, that would require 5,162 Westpac shares if we just focus on the dividend cash.

But, if we also include the franking credits as part of the overall grossed-up dividend income, that would mean investors would only require 3,613 Westpac shares to make $8,000 of annual passive income in FY27.

Is this the right time to invest in the ASX bank share?

It doesn’t seem to be, according to expert analysts. According to Commsec, there are currently nine sell ratings, six hold ratings and just one buy rating on the business.

Therefore, I think it would be a good idea for investors to look at other ASX opportunities.

The post How many Westpac shares do I need to buy for $8,000 of passive income? 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 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.