Owning Wesfarmers Ltd (ASX: WES) shares has been a smart long-term move, but the valuation has recently dropped, which could make it a great time to buy for passive income.

When share prices fall, it boosts the dividend yield on offer for prospective investors.

Looking at the recent Wesfarmers share price, it’s down around 22% (at the time of writing) since 20 July 2026, as the chart below shows.

When such a high-quality business falls like that, I think investors can get excited about the opportunity on offer.

Let’s take a look at what a $15,000 investment into the owner of Bunnings, Kmart and Officeworks could do for investors.

Wesfarmers dividend projection

The business has steadily grown its annual dividend payout since its demerger of Coles Group Ltd (ASX: COL) several years ago, and the dividend growth is expected to continue in FY27.

In FY26, the Wesfarmers board of directors increased the annual dividend per share by 7.8% to $2.22.

In FY27, the company is projected to hike its annual dividend per share by another 7.9% to $2.395.

If that happens, it would translate into a grossed-up dividend yield of 4.7%, including franking credits, at the time of writing. That’s not the biggest dividend yield on the ASX, but it’s a solid start, and I expect plenty more dividend hikes are coming over the rest of the decade.

What passive income would a $15,000 investment create?

At the time of writing, if someone were to invest $15,000 into Wesfarmers shares, they would be able to buy 206 Wesfarmers shares.

With 206 Wesfarmers shares, the projected FY27 annual dividend payout would translate into $493.37 in dividend cash and $704.81 in grossed-up dividend income, including franking credits.

Of course, that’d just be year one. I expect the dividend income to increase in FY28, FY29 and in the longer-term.

Is this a good time to invest?

I think it’s an appealing time to invest in Wesfarmers shares, particularly for a long-term investment. But interest rates and inflation could be a short-term headwind.

Analysts also seem to think the business is now offering decent value.

According to CMC Invest, 11 analysts have issued ratings on the business in the last three months. The average price target across those 11 ratings is $77.79, suggesting a possible 7% rise over the next year from where it is at the time of writing.

That’s not suggesting huge gains over the next 12 months, but with the dividend added in, it could beat the return of the S&P/ASX 200 Index (ASX: XJO).

But other ASX shares could likely deliver returns greater than 7%.

The post If I invest $15,000 in Wesfarmers shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• How I’d build a $50,000 ASX share portfolio today
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• Here are the top 10 ASX 200 shares today
• 5 ASX 200 shares upgraded by experts this week
• Is the Coles share price a buy for its 5% dividend yield?

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 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.

Sharp share price falls can sometimes distract from what is still happening inside the business.

That is how I currently see these two ASX tech shares.

Both have fallen heavily from their 52-week highs, but I think the market may be overlooking the longer-term growth still ahead.

Catapult Sports Ltd (ASX: CAT)

Catapult shares are trading around $3.12 on Friday, roughly 60% below their 52-week high of $7.72.

The company provides performance technology used by professional sporting organisations to analyse athletes, training loads, video, and other performance data.

What I like is that Catapult operates in a relatively specialised market where its products can become part of the everyday workflow of coaches, analysts, and performance staff.

That creates an opportunity to grow alongside customers rather than relying entirely on constantly finding new ones.

I also think the ASX tech share has a long runway because professional sport is becoming increasingly data-driven. Teams are spending more on analytics, performance monitoring, and technology that can help improve decision-making.

If Catapult can continue to deepen its relationships with major sporting organisations, I think the business could look considerably larger several years from now.

At $3.12, I think the market may be underestimating that potential.

SiteMinder Ltd (ASX: SDR)

SiteMinder is an ASX tech share that has fallen even further, trading around $2.60 compared with a 52-week high of $7.96.

The company provides technology that helps hotels manage how their rooms are sold across different online channels.

I like the scale of the problem SiteMinder is trying to solve.

Hotels increasingly need to manage bookings across their own websites, online travel agencies, and other distribution channels. Doing that efficiently becomes more complicated as the number of channels grows.

SiteMinder sits in the middle of that process, giving hotels technology to manage distribution, pricing, and bookings more efficiently.

I think the market may be overlooking how much room there still is for hotel technology to modernise.

A large part of the accommodation industry remains fragmented, with independent hotels and smaller operators still moving more of their operations online. That creates a sizeable addressable market for a platform that can simplify those processes.

The recent share price performance has clearly been disappointing, but I would separate that from the longer-term opportunity.

If SiteMinder can keep expanding its customer base and generate more revenue from each hotel using its platform, I think today’s share price could prove to be a very attractive entry point.

Foolish takeaway

Catapult and SiteMinder are very different businesses, but I think the market may be making the same mistake with both.

Their share prices have fallen sharply, yet each still has exposure to an industry becoming more reliant on technology.

If both ASX tech shares keep executing and their markets continue moving in their favour, I think today’s prices could prove to be great value.

The post 2 ASX tech shares I think the market is underestimating appeared first on The Motley Fool Australia.

More reading

• Down over 50%: 2 ASX shares to buy for global growth
• 3 ASX shares down 40% to 80% I’d buy on the cheap
• 2 ASX shares down over 50% that I would buy
• Brokers say SiteMinder shares can rise 90%. Is the sell-off overdone?
• 2 ASX shares tipped by brokers to return 66% and 90%

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

October is almost here, which means investors may be thinking about where to put fresh money to work next month.

For me, some of the best opportunities on the ASX are shares with strong competitive positions and plenty of room to keep growing over the long term.

If I were building a shopping list for October, these five ASX shares would be near the top.

ResMed Inc. (ASX: RMD)

ResMed is one of my favourite healthcare shares on the ASX.

The company is a global leader in devices and masks used to treat sleep apnoea, giving it exposure to a large healthcare market with recurring demand.

One thing I like is the repeat-purchase element of the business. Patients need replacement masks and other accessories over time, providing ResMed with an ongoing relationship beyond the initial device sale.

With a huge global market and a strong position in sleep and respiratory care, I think ResMed has plenty of room to keep compounding earnings over the long term.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is another ASX share I would be happy to buy for the long term.

Its Visage imaging software has become an important part of the technology infrastructure used by major healthcare organisations, particularly in the United States.

What I like is the combination of a highly scalable software model and exposure to growing demand for medical imaging.

As hospitals generate more scans and look for faster, more efficient ways to manage them, I think Pro Medicus remains well placed to benefit.

The shares can command a high valuation, but the quality and growth potential of the business keep it on my buy list.

Life360 Inc (ASX: 360)

Life360 gives investors a very different type of growth opportunity.

The company operates a family location and safety platform used by millions of people around the world.

It has been growing rapidly for years, but I believe this can continue. Subscription growth, international expansion, and new services could all help Life360 become a much larger business.

There will probably be plenty of volatility along the way, but for investors with a long horizon, I think the growth runway remains attractive.

Xero Ltd (ASX: XRO)

Xero is another ASX technology share I would buy in October.

Its accounting software is deeply embedded in the day-to-day operations of small businesses, accountants, and bookkeepers.

But it is still only scratching at the surface of its large international opportunity.

As more small businesses move their financial processes online, I think the company can continue growing its customer base and generating more revenue from existing users with extra services.

WiseTech Global Ltd (ASX: WTC)

WiseTech is my final pick for October.

Its CargoWise platform helps freight forwarders and logistics companies manage complex global supply chains.

I like how deeply the software can become embedded in customer operations, which can make it difficult to replace and gives WiseTech a strong base for recurring growth.

The company also has a large international opportunity as logistics businesses continue investing in automation and more efficient supply chain management.

For me, that combination makes WiseTech one of the ASX technology shares I would be happy to buy for the long term.

Foolish takeaway

If I were putting new money into the ASX in October, these are the sorts of businesses I would want to own.

ResMed and Pro Medicus give me exposure to healthcare growth, while Life360, Xero, and WiseTech provide different ways to participate in the continued expansion of global technology businesses.

I would be comfortable buying all five with the intention of holding them for many years.

The post 5 best ASX shares to buy in October appeared first on The Motley Fool Australia.

More reading

• $10,000 invested in Pro Medicus and CSL shares 3 years ago is now worth…
• How I’d build a $50,000 ASX share portfolio today
• Xero shares have crashed 64%. Here’s why I’m buying
• 6 ASX 200 shares scoring renewed buy calls this week
• These 3 ASX 200 shares have lost 49%+ in 2026. Are any now bargains?

Motley Fool contributor Grace Alvino 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 Life360, ResMed, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360, ResMed, WiseTech Global, and Xero. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.