On Wednesday, the S&P/ASX 200 Index (ASX: XJO) ended its winning streak with a small decline. The benchmark index edged 0.1% lower to 8,727.7 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to fall

It looks set to be a poor session for Australian investors following a weak night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 53 points or 0.6% lower this morning. In the United States, the Dow Jones fell 0.65%, the S&P 500 dropped 0.2%, and the Nasdaq fell 0.2%.

ASX 200 shares paying dividends

A number of ASX 200 shares are rewarding their shareholders with dividends on Thursday. This includes Aurelia Metals Ltd (ASX: AMI), Brambles Ltd (ASX: BXB), Cleanaway Waste Management Ltd (ASX: CWY), Medibank Private Ltd (ASX: MPL), and Westgold Resources Ltd (ASX: WGX). The latter will be paying a fully franked 10 cents per share dividend to eligible shareholders.

Oil prices mixed

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.6% to US$88.91 a barrel and the Brent crude oil price is up 0.3% to US$100.88 a barrel. Traders appear undecided with where oil prices are going next.

Buy ALS shares

ALS Ltd (ASX: ALQ) shares are still in the buy zone according to Bell Potter. This morning, the broker has retained its buy rating with a trimmed price target of $24.00. It said: “We are becoming increasingly cautious of a deceleration in exploration activity growth from FY28, compounded by weakening Junior equity raisings, a resurgence of cost input inflation observed across the global mining industry, rising bond yields and a weakening gold price environment. That said, indicators point to short-term buoyant conditions in the exploration market, and given the 1Q FY27 Trading Update, we reiterate our position that FY27 Minerals organic revenue growth guidance appears conservative.”

Gold price drops

It could be a tough day for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price dropped overnight. According to CNBC, the gold futures price is down 1.35% to US$4,131 an ounce. The release of the US Federal Reserve’s minutes revealed expectations for another rate hike.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.

Commonwealth Bank of Australia (ASX: CBA) shares are a popular choice among passive income investors.

The banking giant is the second-largest company on the S&P/ASX 200 Index (ASX: XJO), with a market capitalisation of $253 billion, at the time of writing.

CBA’s latest financial update shows the bank has continued to perform well this year, despite ongoing volatility.

As part of its FY26 results announcement in mid-August, the bank confirmed a 7% increase in cash NPAT and an 8% increase in statutory NPAT for the 12 months to 30th of June. Its operating income also climbed 6.2% over the period.

The bank also said it is the first time it has reported growth at or above system in each of its five core domestic product categories. Those categories are home lending, business lending, consumer finance, household deposits, and business deposits.

The bank’s huge scale and strong operational growth mean it has been able to generate a reliable profit and regularly return a large portion of those earnings to its shareholders by way of dividends.

But what exactly could a passive income from CBA shares look like?

Here’s a breakdown.

What’s the latest on CBA shares?

At the time of writing, CBA shares are trading for $151.24 each. That’s around 6% lower for the year to date and down 11% from 12 months ago.

That means an $8,000 investment would currently buy you around 52 shares.

What dividend is the bank forecast to pay to shareholders in FY27 and FY28?

CBA has paid its shareholders a regular fully-franked dividend since 1992. These are typically paid out every six months, in March and September.

The bank most recently paid a $2.70-per-share fully-franked final dividend in late September. That brought the FY26 dividend total to $5.05 per share.

Going forward, the bank is forecast to pay its shareholders an estimated $5.45 per share dividend in FY27. It is then forecast to pay a slightly lower $5.30 per share dividend in FY28.

Using the CBA share price at the time of writing, this translates to a forward dividend yield of roughly 3.6% for FY27. For FY28, the forward dividend yield is closer to 3.5%.

So, what passive income can I earn off an $8,000 investment into CBA shares in FY27 and FY28?

I’ve run the numbers using the estimated dividend payout figures above to work out roughly how much passive income investors can expect from an $8,000 investment in FY27 and FY28.

If the banking giant pays the forecasted $5.45 per-share dividend in FY27, 52 shares would generate around $283.40 in passive income for the year.

Assuming CBA then pays the expected $5.30 dividend in FY28, those same 52 shares would generate around $275.60 in passive income.

The post If I invest $8,000 in CBA shares, what passive income could I earn in FY27 and FY28? appeared first on The Motley Fool Australia.

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• Are CBA shares still worth buying near $150?
• How much passive income can I earn from a $950,000 superannuation balance?
• If I invest $10,000 in CBA shares today, what could they be worth in October 2027?
• How much could the big 4 banks’ share prices fall?

Motley Fool contributor Samantha Menzies 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.

Certain ASX blue-chip shares can deliver substantial passive income thanks to their high dividend yields.

One of the best things I like about investing in ASX dividend shares compared to term deposits is that they can deliver both a good payout and dividend growth over time.

I think two of the most underrated businesses for passive income are below.

Argo Investments Ltd (ASX: ARG)

Argo is one of Australia’s largest and oldest listed investment companies (LICs). It aims to invest in a diversified portfolio of ASX shares with a low-cost, internally managed business model. It says it invests with a conservative, long-term approach.

It aims to provide shareholders with both fully-franked dividend income and capital growth, and it has been successful in doing so.

Argo has regularly increased its annual payout over the last two decades, though the COVID-19 period did lead to dividend reductions.

In FY26, the business grew its annual dividend per share by 4% to 38.5 cents. That means the business currently has a grossed-up dividend yield of 6%, including franking credits, which is a great starting dividend yield.

Currently, its biggest investments are BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), Rio Tinto Ltd (ASX: RIO), Commonwealth Bank of Australia (ASX: CBA), and Wesfarmers Ltd (ASX: WES).

As you can see, the LIC’s portfolio is full of ASX blue-chip shares, which can provide it with resilient profits and dividends over the long term.

With a low management expense ratio of 0.14%, I’d be happy to invest in this business, which has been running since 1946.

JB Hi-Fi Ltd (ASX: JBH)

The other ASX share I really want to highlight is JB Hi-Fi, one of Australia’s leading retailers of electronics and appliances. It has four businesses – JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys, and E&S.

One of the main reasons why I think the JB Hi-Fi share price is appealing is that the ASX blue-chip share now offers a very large dividend yield. It’s down 40% in the past year, so the dividend yield is much higher.

JB Hi-Fi is projected to pay an annual dividend per share of $3.35 in FY27. That translates into a grossed-up dividend yield of almost 7%, including franking credits. I think that’s an impressive yield considering it has increased its payout most years over the past 15 years.

It’s true the outlook seems difficult for Australian households, so we’ll see how that plays out in the next year or two. But, I think the market is being too pessimistic about the business on a long-term view, particularly considering revenue only fell slightly in Australia at the start of FY27.

If there’s a good time to invest in a retailer like JB Hi-Fi, I think it’s now, given the much better valuation. I think households will continue to buy electronics in the coming year, making it more defensive than ASX investors are giving it credit for.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

• How much do I need to retire on $110,000 a year at 65?
• Where I’d invest in ASX shares after the recent RBA rate rise
• Buy, hold, sell: Corporate Travel Management, JB Hi-Fi, BHP shares
• Where to invest as interest rates charge higher
• How much is needed in superannuation to target a $95,000 annual passive income?

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 and Wesfarmers. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.