ASX banking giants, such as National Australia Bank Ltd (ASX: NAB), are popular shares for passive-income investors seeking regular, reliable income.

What sets NAB apart from the other big four banks is its exposure to business lending and SME banking.

NAB also stands out because it earns a huge portion of its revenue directly from its core lending activities, including loans and deposits. This makes it less exposed to the volatility in Australia’s residential mortgage market.

These attributes, combined with its exposure to business banking, allow it to generate a steady, diverse income stream. This is great news for investors seeking reliable passive income.

But what exactly could that passive income look like?

Lets investigate, using a $5,000 investment as an example.

What’s the latest out of NAB shares?

NAB shares have faced a few headwinds this year, including overall lower investor sentiment, policy changes, and affordability concerns.

Higher-than-expected inflation data and renewed interest rate hike forecasts haven’t helped matters either. A potentially weaker housing market means some investors are turning away from ASX bank shares.

NAB shares have managed to rebound from an annual low in early June, but they’re still down around 9% year-to-date and are 11% lower than 12 months ago.

At the time of writing, NAB shares are $38.72 each.

But brokers are divided about the outlook for NAB shares over the next 12 months. TradingView data shows that half of analysts rate NAB shares a hold. The other half are split evenly between buy/strong buy and sell/strong sell ratings. But the $38.29 average target price now implies a potential 1% downside ahead.

How many NAB shares can I buy with $5,000?

At the time of writing, the $38.72 trading price means a $5,000 investment buys about 129 shares.

What annual dividend is the bank forecast to pay its shareholders in FY26?

NAB has been paying regular fully-franked dividends every six months to shareholders dating back to 2003.

NAB most recently paid its shareholders a fully franked interim dividend of 85 cents per share in July and is forecast to pay a final 85-cent dividend in December, bringing the total to $1.70 per share for FY26.

At the time of writing, that translates to a forward dividend yield of around 4.4% for the year.

What is NAB forecast to pay in FY27?

Going forward to FY27, the bank is expected to increase its dividend slightly to $1.72 per share. Based on the current share price of $38.72, that translates to a forward dividend yield of closer to 4.5% for FY27.

Ok, so what could I earn off a $5,000 investment in FY27?

If the banking giant pays the forecasted $1.72 dividend to shareholders in FY27, then a $5,000 investment (or 129 shares) will generate $221.88 in passive income, at the time of writing.

The post If I invest $5,000 in NAB shares, what passive income will I receive in FY27? appeared first on The Motley Fool Australia.

More reading

• Which big 4 bank stock will rise the most before the end of 2026?
• Sell alert! Why this expert is calling time on Tabcorp and NAB shares
• Buy, hold, sell: Coles, NAB, CSL shares
• 2 ASX 200 shares to buy and 1 to sell now
• Down 15% and paying record dividends: Are CBA shares now a good buy for passive income?

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.

There are a number of large ASX shares that offer investors sizeable dividend yields. In my view, Telstra Group Ltd (ASX: TLS) shares could be the best ASX blue-chip stock for dividend income if someone wanted to invest $6,000.

It may not have the biggest dividend yield, but I think it offers a pleasing mix of a growing dividend and a solid dividend yield.

In FY26, the ASX telco share grew its annual dividend income by 10.5% to 21 cents per share. It has increased its dividend five years in a row and analysts predict the dividend can continue rising at a solid rate.

Let’s take a look at what’s projected for FY27 and what that would mean for a $6,000 investment in Telstra shares.

Projected dividend income for the 2027 financial year

The business offers very defensive earnings – being connected to the internet seems important for a lot of households, businesses and so on.

As Australia’s digitalisation increases, more devices require subscriptions, helping boost Telstra’s subscriber numbers each year (including its wholesale division, which supports other smaller telcos). Therefore, it looks defensive with growth attributes, in my view.

In FY26, the company managed earnings per share (EPS) growth of 5.3%, cash EBIT growth of 8%, cash net profit growth of 11.6% and cash EPS growth of 13.8%.

Management think that cash EBIT could grow between 1.9% and 6.2% in FY27, which I believe bodes well for cash EPS (and the dividend).

Using the projection on Commsec, the business is projected to grow its annual dividend income per Telstra share by 4.75% in FY27 to 22 cents per share.

Excluding franking credits, that’s a potential dividend yield of 4.5%. Assuming the same level of franking as FY26, it’d be a grossed-up dividend yield of 6.3% including franking credits.

What would a $6,000 investment in Telstra shares create?

At the time of writing, a $6,000 purchase of Telstra stock would buy 1,234 shares.

With those shares, for FY27, the shareholder is therefore projected to receive $271.48 of dividend cash and approximately $376.19 overall dividend income, including the franking credits.

Collectively, analysts seem quite positive about the company’s valuation right now. According to Commsec, 16 analyst ratings currently cover the business: nine are buys, six are holds, and one is a sell.

While Telstra isn’t trading near 52-week lows, it looks attractive to me. Of course, there could be even better ASX share opportunities out there to buy.

The post If I buy $6,000 of Telstra shares, how much dividend income will I receive? appeared first on The Motley Fool Australia.

More reading

• Should I buy Telstra shares for passive income?
• I’m planning to retire with $1 million in superannuation. How much passive income can I earn? 
• Telstra vs NAB: Which ASX blue chip is the better buy?
• How many Telstra shares do I need to buy to earn $500 of passive income every month?
• 5 ASX shares I’d recommend to beginners

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 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.

The big four bank stocks make up a foundational piece of many investors’ portfolios. 

They also dominate the S&P/ASX 200 Index (ASX: XJO) in terms of market share. 

Combined, they make up almost a quarter of Australia’s benchmark index. 

This means when the big four bank stocks underperform, they have a huge impact on many ASX ETFs that track the domestic market. 

This is exactly what has happened so far in 2026. 

Why have bank stocks underperformed this year?

At the time of writing, in 2026: 

• Commonwealth Bank of Australia (ASX: CBA) shares are down 5% 
• National Australia Bank Ltd (ASX: NAB) shares have fallen almost 9%
• Westpac Banking Corp (ASX: WBC) is down more than 10%
• ANZ Group Holdings Ltd (ASX: ANZ) have risen 4%. 

These disappointing results have heavily contributed to the underperformance of the broader ASX 200, which is essentially flat year to date. 

Several factors have contributed to these poor returns. 

Firstly, the big four bank stocks came into 2026 with stretched valuations after strong growth in the prior year. 

Additionally, sentiment has shifted to viewing high interest rates as poor for the housing market as mortgage growth deteriorates. 

The big four control more than 70% of Australia’s mortgage market, so weaker housing activity hits the sector disproportionately. 

Home-loan applications have fallen roughly 12–20% across the majors, according to Reuters.

In short, the market is no longer paying the same premium for reliable bank earnings when it sees slower mortgage growth, intense lending competition and rising credit-risk provisions ahead.

Can they rise before 2027?

With three of the big four bank stocks losing ground in 2026, investors might be looking to buy the dip. 

The latest outlook from experts paints a mixed picture for the next 6-12 months. 

On the positive side, UBS recently reaffirmed its buy rating on Westpac shares with a 12-month target of $45.

With Westpac shares currently trading for just under $35 per share, this indicates almost 30% upside. 

It also offers a competitive yield across the big four. 

On ANZ shares, Citi has a buy rating with a $39.25 target. 

This indicates limited upside from its current price hovering around $38. 

CBA shares still appear overpriced according to Shaw and Partners’ James Bills, who recently had a sell rating on Australia’s largest bank. 

Finally, NAB is also receiving poor outlooks from brokers, with Catapult Wealth’s Dylan Evans recently issuing a sell recommendation on the big four bank stock. 

The post Which big 4 bank stock will rise the most before the end of 2026? appeared first on The Motley Fool Australia.

More reading

• If I invest $5,000 in NAB shares, what passive income will I receive in FY27?
• Macquarie Group vs Commonwealth Bank: Which ASX bank is the better buy?
• Sell alert! Why this expert is calling time on Tabcorp and NAB shares
• Could CBA shares reach $180 in 2027?
• Buy, hold, sell: Coles, NAB, CSL shares

Motley Fool contributor Aaron Bell has positions in National Australia Bank. 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.