Working out how many Cochlear Ltd (ASX: COH) shares you need for $10,000 of passive income is simple maths, but the answer might catch you off guard.

Cochlear is the world’s leading maker of implantable hearing solutions, holding around 60% of the global cochlear implant market.

For years, the company was a dependable compounder that quietly rewarded patient shareholders.

The past 12 months, however, have tested even its most loyal investors.

The dividend maths for Cochlear shares

Cochlear pays two dividends to shareholders each year.

Lately, those payments have added up to an annual dividend of $4.30 per share.

The most recent interim dividend of $2.15 was franked at 85%, which adds a further tax benefit for many holders.

To generate $10,000 in annual passive income, including franking credits, the calculation is straightforward.

You simply divide $10,000 by the grossed-up dividend of about $5.87 (the $4.30 cash payout plus roughly $1.57 in franking credits).

That works out to roughly 1,705 Cochlear shares.

At current share prices of around $118, those shares would set you back close to $201,190.

That is a serious amount of capital for most everyday investors to commit, and it is also a reminder that Cochlear has never really been an income stock at heart.

At current prices, the shares offer a gross dividend yield of about 3.6%, although franking credits sweeten that headline return a little further at tax time.

Why have Cochlear shares fallen so far?

The dividend is only half the story here.

Cochlear shares have dropped heavily over the past year, one of the reasons why Cochlear’s dividend yield looks unusually generous now.

The stock currently trades far below its 52-week high of $319.56, largely due to a run of disappointing news from the company itself.

Recent earnings in focus

Cochlear reported its half-year results for the six months to 31 December 2025 back in February.

In these results, sales revenue came in at about $1.17 billion, broadly flat on the prior corresponding period. Statutory net profit fell a nasty 21% to $161.5 million, and underlying net profit slipped 9% to $195 million.

The weaker result was driven largely by the costly rollout of the new Nexa implant system, while competitive discounting from rivals chipped away at market share.

Management chose to hold the interim dividend steady rather than lift it, a call that speaks volumes about the year ahead.

Investors will get their next major update when Cochlear reports its full-year FY26 results on 18 August 2026.

Are Cochlear shares worth it for the income?

That is the real question for income-focused investors.

Cochlear is a high-quality business with a wide competitive moat, but its dividend yield is modest next to the ASX banks or Telstra Group Ltd (ASX: TLS).

An investor chasing pure income could reach $10,000 with far less capital elsewhere.

The appeal of Cochlear shares has always been growth, not yield, and anyone buying today is really paying for a long-term recovery story.

In other words, the dividend is a bonus, not the main event.

Foolish Takeaway

You would need roughly 1,705 Cochlear shares to earn $10,000 in annual passive income once franking credits are included.

At current prices, that means an outlay of close to $201,000.

For most investors, Cochlear shares make more sense as a growth holding than a pure income one.

On the growth front, Cochlear’s looming FY26 result will tell us whether the recovery is finally on track.

Until then, the passive income case remains an expensive one to make.

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

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Motley Fool contributor Mark Verhoeven 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 Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) shares haven’t exactly impressed investors over the past year.

At the time of writing, the airline’s shares are down around 8% over the past 12 months, lagging the S&P/ASX 200 Index (ASX: XJO), which has gained about 2%.

But one leading broker believes the next chapter could be much brighter.

Market underestimates Project Sunrise

Morgan Stanley (NYSE: MS) has retained its overweight rating on Qantas shares and lifted its price target to $12.50, up from $10.60. That implies more than 20% upside from current levels.

The broker believes investors are underestimating the long-term value of Project Sunrise. This is Qantas’ ambitious plan to launch non-stop flights from Australia’s east coast to London and New York from October 2027 using specially designed Airbus A350-1000ULR aircraft.

Management has previously guided to around $400 million in additional annual earnings once the new routes mature. However, Morgan Stanley believes that’s only part of the story.

More than just higher earnings

The broker argues Project Sunrise could fundamentally improve the quality of Qantas’ business. The new aircraft will have around 41% premium seats, compared with roughly 10% to 20% across much of Qantas’ existing international fleet.

That greater exposure to premium travellers could lift margins and make international earnings more resilient through economic cycles.

Combined with Qantas’ ongoing fleet renewal and broader network strategy, Morgan Stanley believes Qantas shares deserve a higher valuation multiple than the market currently assigns.

Earnings forecasts are climbing

While the broker made only minor changes to its FY26 forecasts, it increased FY27 earnings per Qantas share estimates by 5%, helped largely by lower expected fuel costs.

Further out, Morgan Stanley lifted its international EBIT forecasts by between 3% and 31% across FY28 to FY30 and now expects international EBIT to reach $1.23 billion by FY31.

That’s more than double the $596 million generated in FY25 and around 26% above broader market expectations.

Why the broker is confident

Morgan Stanley points to Qantas’ existing Perth-to-London service as evidence that passengers are willing to pay a premium for non-stop long-haul travel.

Since launching in 2018, the route has consistently achieved a revenue premium of more than 20% over one-stop alternatives while maintaining load factors close to 90%.

With Sydney’s premium travel market roughly three times larger than Perth’s, the broker believes Project Sunrise doesn’t need a dramatic shift in customer behaviour to succeed.

What could go wrong?

Qantas shares still carry risks, obviously.

Premium demand may fall short of expectations, rival airlines could introduce competing ultra-long-haul services sooner than anticipated, or aircraft delivery delays could push back the earnings benefits.

Fleet investment is also expected to weigh on free cash flow over the next few years before tapering off.

Foolish takeaway

Morgan Stanley believes Project Sunrise could transform Qantas into a stronger, more profitable airline rather than simply adding another route.

Investors in Qantas shares won’t have long to wait for another update, with the airline set to release its FY26 results on 27 August, when management is expected to provide further details on its fleet renewal and flagship expansion plans.

The post Why this top expert thinks Qantas shares can fly 20% higher appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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.

National Australia Bank Ltd (ASX: NAB) shares are sitting at a price that has me looking again.

The bank offers a solid dividend, a reasonable valuation, and an advantage that sets it apart from the rest of the big four.

Here is why I would buy NAB shares today.

The part of NAB I like most

NAB has a leading position in Australian business banking. That gives it access to customer relationships that can stretch well beyond a single loan.

A business may need transaction accounts, deposits, equipment finance, working capital, payment services, foreign exchange, and advice as it grows. The more of those needs NAB can handle, the deeper the relationship can become.

That is a more interesting growth opportunity to me than competing aggressively for every available mortgage.

Importantly, this focus has been successful. For the first half, NAB reported that its Business and Private Banking division grew lending balances by 4.6% during the six months to March 2026, while deposits increased by 5.9%.

The bank has also been investing in digital tools that allow customers to complete simple tasks more quickly, leaving bankers with more time to work through complex financial needs.

More than 80% of lending applications in the division were submitted digitally during the first half. I like that combination of better technology and relationship banking because it can improve efficiency without removing the personal support many business customers value.

Does the NAB share price valuation stack up?

NAB shares are trading around $39.30.

Based on CommSec consensus estimates, the bank is expected to generate earnings per share of $2.43 in FY26 and $2.53 in FY27.

That places the shares on price-to-earnings ratios of approximately 16.2 times FY26 earnings and 15.5 times FY27 earnings.

I would call that reasonable rather than exceptionally cheap.

The dividend strengthens the case. Forecast dividends per share of $1.70 in FY26 and $1.72 in FY27 imply dividend yields of around 4.3% and 4.4%, respectively.

For investors eligible to benefit from franking credits, the after-tax income could be even more attractive.

A simpler bank could be a better bank

NAB is also trying to reduce the complexity that has accumulated across its operations.

It had 27% fewer products in the first half than it did in FY22 and had decommissioned approximately 500 legacy applications since October 2023.

Removing old systems and overlapping products can help the bank serve customers faster, lower operating costs, and introduce new technology more easily.

The benefits may arrive gradually, but banking rewards small improvements made across millions of customer interactions. A smoother account opening process or faster lending decision can make a meaningful difference when repeated at scale.

Foolish takeaway

The major banks are often grouped together, but I think NAB’s business banking position gives it a distinct route to growth.

Its customers can require a wide range of financial services as their businesses develop, creating opportunities for deeper relationships and greater revenue over time.

At $39.30, investors are receiving a forecast yield above 4% while paying a valuation that I find reasonable for the quality of the franchise.

NAB still needs to manage credit quality, competition, and its technology overhaul carefully. Even so, I think the balance between income, valuation, and long-term opportunity makes the shares a buy.

The post Why NAB’s business banking edge makes it a buy at $39.30 appeared first on The Motley Fool Australia.

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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 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.