The Vanguard Australian Shares Index ETF (ASX: VAS) is the biggest exchange-traded fund (ETF) in Australia. Its shares are popular with passive income investors who want both income and long-term growth.

The ETF gives its investors instant diversification to a broad range of Australian shares across the top ASX-listed S&P/ASX 300 Index (ASX: XKO) companies. What sets the fund apart from the rest is that many ETFs track the S&P/ASX 200 Index (ASX: XJO), but only VAS mirrors the ASX 300.

As of the 31st of August, its top holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ).

The benefit of its diversification across major companies is that it can access long-term capital growth potential and also a regular income through its dividend payments, including any associated franking credits. It’s long-standing, too. The fund has been issuing payouts for over 17 years.

Let’s find out what the VAS ETF passive income looks like. And exactly what it will take to earn $10,000 per year.

What dividend does the VAS ETF pay its shareholders?

The fund pays out a shareholder dividend four times per year, usually in January, April, July, and October.

The VAS ETF most recently paid its shareholders 48.82 cents per unit in July, with 66.56% franking.

The estimated distribution amount for its upcoming dividend was announced yesterday. The fund expects to pay shareholders $1.29 per unit next month.

The shares are scheduled to trade ex-dividend on the 1st of October, with the payment date falling on 16 October.

The latest dividend means that the fund has paid an annual total of $3.44 per unit to investors. At the time of writing, that translates to a dividend yield of around 3.2%.

It’s not the highest dividend yield out there, but you’re paying for diversity.

So, how many VAS ETF shares do I need to own to generate $10,000 in passive income every year?

Based on the running total of $3.44 per unit over the past year, investors would need to own around 2,907 shares of the VAS ETF to earn $10,000 in passive income annually.

What would that cost me?

At the time of writing, the VAS ETF is $109.12 a piece. That means investors would need to invest roughly $317,200 in the fund to earn $10,000 per year in passive income.

It’s not a small amount, but if passive income combined with capital gains is your goal, it could be worth it in the long run.

And remember, you don’t need to invest the entire amount in one go. Start off small and let compound growth do some of the work for you.

The post How many VAS ETF shares do I need to buy for $10,000 per year of passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has positions in BHP Group and Vanguard Australian Shares Index ETF. 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.

Commonwealth Bank of Australia vs Telstra shares: Which is better for passive income this month?

When it comes to earning regular, reliable passive income on the ASX, it’s hard to overlook blue-chip stalwarts like Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS). Both are household names, offering fully franked dividends and wide investor ownership. But if you’re weighing up CBA vs Telstra shares for your income portfolio right now, there are some key differences to keep in mind before jumping in.

The case for Commonwealth Bank of Australia

Commonwealth Bank of Australia is Australia’s largest bank by market cap and one of the country’s most recognised brands. With a long history, CBA delivers retail, business and institutional banking, along with wealth management, insurance, and broking services to millions of customers across Australia, New Zealand, and several major global hubs.

Looking at the fundamentals, three points really stand out for CBA. Firstly, it’s massive: with a market cap of $252.78 billion, it dwarfs most ASX players. Secondly, it offers a fully franked dividend yield of 3.32%, with its most recent dividend (final, paid September 2026) clocking in at $2.70 per share. Thirdly, CBA’s dividend payouts have shown remarkable stability, with dividends paid twice a year and franking always at 100%.

As of its most recent profile, CBA is one of the “big four” banks in Australia and, with its scale, offers a defensive income stream many investors have come to trust.

The case for Telstra

Telstra is Australia’s largest telecommunications and information services business, operating a vast fixed and mobile network and serving both retail and business customers across the country. After a recent restructure, Telstra has diversified into four main segments, bringing in subsidiaries like ServeCo, InfraCo Fixed, Amplitel, and Telstra International to manage different aspects of its infrastructure and services.

Telstra’s appeal for income investors is straightforward: its dividend yield is higher than CBA’s, sitting at 4.35% based on current figures. The company has a market cap of $53.58 billion, making it large and established, but more nimble than a major bank. Franking sits at just over 90% for its recent payments, and the last two dividends (interim and final for FY26) have been 10.5 cents per share.

While Telstra’s dividends have fluctuated a little over the years (including a mix of regular and special payments), it remains a cornerstone income pick for many Australians who want reliable, regular payments from a well-known brand.

Valuation comparison

With the two companies serving very different industries, valuation multiples are best compared with some caution. Still, the side-by-side fundamentals are useful for gauging income value:

Metric	Commonwealth Bank of Australia	Telstra
Market Cap	$252.78 billion	$53.58 billion
P/E Ratio	23.37	24.27
Dividend Yield	3.32%	4.35%
Earnings per share	6.517	0.199
Dividend per share	$5.05	$0.21
Franking	100%	~90%

Both CBA and Telstra are trading at P/E ratios above 23, which are broadly similar, especially considering sector variations. One note: CBA’s P/E and EPS align mathematically, but with Telstra, the P/E ratio may be based on a different earnings measure than the per-share EPS reported, which could explain some apparent inconsistency.

Recent share price performance

Comparing recent share price history until 22 September:

• Commonwealth Bank of Australia closed at $152.33, down 0.43% for the day. The year-to-date return stands at -2.0%.
• Telstra Group Ltd closed at $4.83 on 22 September 2026 (the previous day), flat for the day, and is up 3.5% year-to-date.

So, Telstra has outperformed CBA on share price return so far this year, even while the bank has edged down.

Which is the better buy?

If regular passive income is top of my list, I’d lean towards Telstra this month. Its current dividend yield is meaningfully higher than Commonwealth Bank of Australia’s, at 4.35% vs 3.32%. Both companies offer a level of franking that makes their after-tax income attractive, but CBA’s 100% franking is only a modest edge over Telstra’s ~90%.

Telstra’s share price has also delivered positive momentum year-to-date, while CBA has slipped. That recent performance gives me extra comfort that the higher yield isn’t simply a function of a falling share price.

There’s no question CBA delivers stability, scale and one of the longest dividend records on the ASX, and it remains a buy-and-hold classic for income. But if I’m targeting the best yield for passive income right now, Telstra edges in front for me — provided I’m comfortable with the telco sector’s different risks and growth outlook. For this income chaser, Telstra gets my vote this month.

The post CBA vs Telstra: Which ASX blue-chip is better for passive income? appeared first on The Motley Fool Australia.

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• Fortescue vs Commonwealth Bank: Which is best for passive income?

Motley Fool contributor Laura Stewart 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Coles Group Ltd (ASX: COL) shares are a significantly underrated pick when it comes to blue-chip passive income, in my view.

Being an attractive dividend pick isn’t just about dividend size; it’s also about payment reliability.

Numerous ASX blue-chip shares have reduced their payout since the start of 2020, but not Coles.

Let’s run through whether the business is an attractive buy right now.

Reliable dividend

For me, seeing consistent growth of the dividend is a great sign of a business I can rely on for passive income.

Past dividend performance is not a guarantee of future dividend returns, of course, but I think it shows how things can go for the company when conditions are reasonable.

Coles has hiked its annual dividend per share each year since 2019, meaning several years in a row of dividend growth, an impressive record.

In FY26, the company grew its annual dividend per share by 13% to 78 cents. This came after a 2.8% rise in sales revenue, operating profit (EBIT) grew 9.9% to $2.3 billon and underlying net profit rose 13.7% to $12.5 billion

Impressively, the supermarket division delivered 5.1% sales revenue and 12.2% EBIT growth, which was the core driver of the company’s financials.

Solid start to FY27

The company said that it enters FY27 in a strong position, with supermarkets having gained market share and significantly improved customer satisfaction scores over the past year. Sales growth for the first eight weeks of FY27 was consistent with the fourth quarter of FY26.

In the first few weeks of FY27, sales momentum was well ahead of the FY26 fourth quarter, though the Ooshies collectibles campaign by Coles’ main rival in late July and early August put a speed brake on its growth rate.

It’s clear that the business continues to deliver good growth and that’s a driver of future value within the business.

Is the Coles dividend yield attractive?

The projection on Commsec suggests the business could hike its annual dividend by 7% in FY27. That potential payout translates into a grossed-up dividend yield of 5.2%, including franking credits, at the time of writing.

For a starting yield for the next 12 months, I think it’s a pleasing beginning dividend. It’s not the biggest yield on the ASX, but the steady improvement of the financials over time (including the advanced new warehouses) makes this an appealing business to me.

According to Commsec, there are currently 17 analyst ratings on the business – eight of those calls were a buy, seven were a hold, and just two were a sell. If you’re looking for a defensive investment, I think it’s a great time to invest.

The post Is the Coles share price a buy for its 5% dividend yield? 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.