Leading blue-chip shares like Wesfarmers Ltd (ASX: WES) are a popular choice among passive income-seeking investors.

The retail conglomerate has a highly diversified portfolio with exposure to some of Australia’s strongest retail brands, including Kmart and Bunnings. The company also has operation office supplies, health and wellbeing, industrials, chemicals, energy, and even more.

As a retail company, Wesfarmers is a classic cyclical stock, but its highly diversified portfolio means it also has some strong defensive qualities.

This year is a great example of the peaks and troughs that a cyclical stock like Wesfarmers can travel through.

Wesfarmers shares have come off the boil in February as Australians tighten their purse strings and prepare for ongoing instability. But then signs of some recovery, forecasts of interest rate cuts and softer-than-expected inflation figures saw the shares swing the other way very quickly. 

In mid-May Wesfarmers shares started rebounding, and at the time of writing the shares are trading at one of the highest levels seen since October last year.

That’s one of the benefits of cyclical stocks. They tend to outperform during economic recoveries.

Another benefit of Wesfarmers shares is the company’s sheer size and market dominance. At the time of writing, the business is the 6th largest company listed on the ASX with a market cap of around $102 billion. 

The company is well-established and financially sound with a history of reliable growth and stability. 

All these factors combined mean the company can pay its shareholders reliable and consistent passive income.

But what exactly does that passive income look like?

How many Wesfarmers shares can I get for $3,000?

At the time of writing, Wesfarmers shares are trading at $89.91 each. That means a $3,000 investment will buy you around 33 shares.

What dividend does Wesfarmers pay its shareholders?

Wesfarmers pays its shareholders two fully-franked dividend payments per year, payable in March and October. 

In March, Wesfarmers paid its investors an interim dividend of $1.02 per share.

And as the company’s earnings climb, its payout is expected to rise too.

Analysts tip Wesfarmers to pay an annual $2.13 dividend per share for FY26, and then $2.31 in FY27.

Based on the current $89.91 share price, that translates to a forward dividend yield of around 2.4% for FY26 and roughly 2.6% in FY27.

So, what’s the estimated passive income for FY27?

Using the estimated payout figures above, we can calculate roughly how much income to expect from a $5,000 investment in Wesfarmers shares.

If the conglomerate pays the expected $2.13 per-share dividend in FY26, your 33 shares would generate $70.29 in passive income.

Assuming Wesfarmers then pays the forecasted $2.31 dividend in FY27, those 33 shares would generate another $76.23 in passive income for the year.

That’s some great passive income!

The post If I invest $3,000 in Wesfarmers shares, how much passive income will I earn in FY27? appeared first on The Motley Fool Australia.

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

ASX 200 energy shares led the market with a 3.88% gain after the US-Iran interim peace deal fell apart last week.

The US hit Iran following its attacks on vessels in the key global oil and gas shipping channel, the Strait of Hormuz.

Iran launched retaliatory strikes on US bases across the region.

The new strikes created uncertainty in global markets, with the S&P/ASX 200 Index (ASX: XJO) falling 0.43% to 8,806 points last week.

Energy shares followed oil and gas prices higher.

The Brent crude oil price increased 5.7% over the week to US$76.01 per barrel on Friday.

The US West Texas Intermediate (WTI) oil price lifted 4.6% to US$71.89 per barrel.

US heating oil rose 8.3% over the week.

UK gas prices rose 13%, German gas lifted 11.8%, and European gas increased 8.7%.

On Friday, Trading Economics analysts said:

Shipping traffic through Hormuz slowed sharply this week, with markets closely monitoring whether transit activity will normalize.

The strategic waterway continues to be a key sticking point in ongoing US-Iran negotiations.

Five of the 11 market sectors finished the week in the red.

Let’s review.

Energy shares rise as US-Iran attacks resume

The Woodside Energy Group Ltd (ASX: WDS) share price rose 4.23% over the week to $29.05 on Friday.

The Santos Ltd (ASX: STO) share price lifted 7.32% to $7.62.

The Ampol Ltd (ASX: ALD) share price rose 4.13% to $35.28.

The Viva Energy Group Ltd (ASX: VEA) share price ascended 5.14% to $2.25 at Friday’s close.

The Karoon Energy Ltd (ASX: KAR) share price finished 1.07% higher at $1.42.

Beach Energy Ltd (ASX: BPT) shares lifted 4.17% to 88 cents apiece.

The ASX 200’s largest uranium share, Paladin Energy Ltd (ASX: PDN), rose 0.8% to $10.06 on Friday.

The Boss Energy Ltd (ASX: BOE) share price rose 6.3% to $1.35.

The Deep Yellow Ltd (ASX: DYL) share price fell 2.36% to $1.45.

The market’s largest ASX 200 coal share, Yancoal Australia Ltd (ASX: YAL) fell 2.16% to $5.44.

The Whitehaven Ltd (ASX: WHC) share price lost 2.24% to finish the week at $7.42.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Energy (ASX: XEJ)	3.88%
Financials (ASX: XFJ)	1.97%
Information Technology (ASX: XIJ)	1.34%
Consumer Discretionary (ASX: XDJ)	0.95%
Consumer Staples (ASX: XSJ)	0.87%
Utilities (ASX: XUJ)	0.8%
Communication (ASX: XTJ)	(0.31%)
Healthcare (ASX: XHJ)	(0.79%)
A-REIT (ASX: XPJ)	(1.17%)
Industrials (ASX: XNJ)	(1.41%)
Materials (ASX: XMJ)	(4.41%)

The post ASX 200 energy shares rebound after US-Iran peace deal falls apart appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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.

I think it’s quite rare to find ASX dividend stocks that offer a mixture of both reliability and a good dividend yield. WCM Global Growth Ltd (ASX: WQG) is one of the best businesses for that combination of passive income factors, in my opinion.

If I were picking a business for dividends, I’d pick WCM Global Growth over names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Rio Tinto Ltd (ASX: RIO), Westpac Banking Corp (ASX: WBC), Fortescue Ltd (ASX: FMG), National Australia Bank Ltd (ASX: NAB), Woodside Energy Group Ltd (ASX: WDS) or ANZ Group Holdings Ltd (ASX: ANZ).

Part of the reason for that preference is the fact that WCM Global Growth is a listed investment company (LIC). That means it invests in other assets on behalf of shareholders and the board of directors get to decide how big the payouts will be.

The LIC has a fairly different management team to many other LICs on the ASX – it’s managed by WCM, a fund manager that’s based in Laguna Beach, California. They chose that location so that its team are not “living in an echo chamber – surrounded by industry companies and peer analysts”.

Let’s look at the performance, reliability and dividend yield of this compelling ASX dividend stock.

Impressive passive income option

The LIC is invested in a portfolio of between 20 to 40 stocks that are quality global companies primarily in high-growth areas within consumer, technology and healthcare sectors.

There are a couple of key aspects that influence what the WCM team are looking for. They want to find businesses with an improving economic moat (competitive advantages). An economic moat is what keeps the business ahead of competitors or keeps customers coming back. Advantages could include intellectual property, brand power, network effects and ecosystems, cost advantages and so on.

When an economic moat is improving, it suggests the business is entrenching its position in the market further, giving it greater potential to grow profit.

The other main element of the investment strategy is that WCM look for businesses that have a corporate culture that enables an improvement in the economic moat. The investment team believe that corporate culture is the biggest influence on a company’s ability to grow its competitive advantage.

It looks across the world for opportunities, not just US businesses. At 31 May 2026, 56% of the portfolio was invested in the Americas, 21% was invested in Europe, 18% invested in Asia Pacific and 5% was invested in ‘other’.

As of 31 May 2026, the LIC’s portfolio has delivered a net return after fees of 15.8% per year since inception in June 2017 and 22% per year over the last three years. Past performance is not a guarantee of future returns, of course, but it shows the investment process can be very effective.

The strong performance by the ASX dividend stock’s portfolio has enabled it to grow its annual dividend per share every year since FY19. It started paying a quarterly dividend in FY23 and it has increased its quarterly payout every quarter since then.

Good dividend yield

The dividend has regularly increased and now the dividend yield is pleasingly high.

It has provided guidance that over the next 12 months, it expects to pay four quarterly dividends that total 9.59 cents per share.

The guidance translates into a grossed-up dividend yield of 7.1%, including franking credits, at the time of writing.

I think this seems like a good time to invest, partly because (at the time of writing) it’s trading at a high single-digit discount to its net tangible assets (NTA).

At the time of writing, investing $1,000 would buy 518 WCM Global Growth shares. I’d happily make that investment today.

The post $1,000 buys 518 shares in an incredibly reliable ASX dividend stock appeared first on The Motley Fool Australia.

More reading

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• How much is needed in superannuation to target $60,000 in annual passive income?
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Motley Fool contributor Tristan Harrison has positions in Wcm Global Growth. 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.