Commonwealth Bank of Australia (ASX: CBA) shares are usually among the most popular dividend holdings because of their blue-chip status and satisfactory dividend yield.

However, the ASX bank share‘s dividend yield isn’t exactly the biggest in the sector. It usually has the smallest dividend yield compared to names like National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

But what CBA lacks in dividend yield, it makes up for in its dividend growth over the past 15 years and payout stability.

Pleasingly, the bank has increased its annual dividend each year since FY20 following the financial impacts of the COVID-19 pandemic.

Commonwealth Bank’s latest result was another period of good performance by the ASX bank share. The CBA interim dividend per share increased by 4% to $2.35, funded by 6% growth in cash net profit after tax (NPAT).

Let’s take a look at what analysts think the business could deliver in the 2027 financial year, which recently started.

2027 dividend projection for owners of CBA shares

According to the independent projection on Commsec, the ASX bank share is projected to pay an annual dividend per share of $5.15 in the 2027 financial year.

At the time of writing, the forecast translates into a dividend yield of 3.1% excluding franking credits and a grossed-up dividend yield of 4.5% including franking credits.

If someone were to invest $10,000 in Commonwealth Bank, they would be able to buy 60 CBA shares (with a little bit of money left over).

With those 60 CBA shares, investors could receive $309 of cash and $441.43 overall, including the franking credits.

Is this a good time to invest in Commonwealth Bank?

According to CMC Invest, there have been eight analyst ratings on the business in the last three months.

Of those eight, all of them have been a sell rating. So, the investment professionals are very negative on how appealing the company’s valuation is right now.

The average price target of those eight ratings is $120.38, according to CMC Invest. That means, collectively, those analysts are predicting the CBA share price could drop by 27% within the next year, at the time of writing.

After the Federal budget, the Commonwealth Bank share price dropped below $154, though it has somewhat recovered from that recent low point.

It seems there are better ASX shares out there that we can buy.

The post If I invest $10,000 in CBA shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• VAS vs. VHY: Which is the better ASX ETF for retirement?
• How much do I need in my superannuation to get $50k per year in passive income?
• Your FY27 tax return will look different. Here’s what changed and how to prepare
• How to go from zero to $50,000 with ASX shares
• Forget CBA shares! I’d rather buy these ASX dividend shares

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.

Owning ANZ Group Holdings Ltd (ASX: ANZ) shares usually means getting a good dividend yield due to the bank’s typically rewarding payout.

As an ASX bank share, ANZ typically has a relatively low price/earnings (P/E) ratio and a fairly generous dividend payout ratio. This combination leads to a solid yield.

The bank is predicted to continue to deliver pleasing payouts for shareholders over the next couple of financial years.

FY26

We’re already more than three-quarters of the way through ANZ’s 2026 financial year, which ends on 30 September 2026.

The company’s FY26 half-year result was promising for the ASX bank share.

Compared to the second half of FY25 (and excluding FY25 second half significant items), HY26 cash profit saw operating expenses decline by 9%, cash net profit before provisions climbed 12%, and cash profit grew 14%.

With that result, ANZ’s board of directors decided to maintain its interim dividend per share at 83 cents – the same as six months ago.

The projection on Commsec suggests the ASX bank share could pay an annual dividend per ANZ share of $1.66 in FY26. That possible 2026 financial year payout would be the same as the FY25 payout.

At the time of writing, ANZ’s dividend yield for FY26 could be 4.6% excluding franking credits and 6.1% including franking credits.

FY27

When the company announced its FY26 half-year result in May, ANZ CEO Nuno Matos gave some commentary on the evolving situation for the local economy and what it could mean for customers (and owners of ANZ shares):

Our customers understand the world is more complex. Our corporate customers have been preparing for shocks, building capital and liquidity, maintaining flexibility and improving supply chain resilience. As such, there has been no material change in the overall borrowing behaviour of our customers.

Likewise, in both Australia and New Zealand, households entered this period with generally strong balance sheets and high savings buffers. We have not seen any material increase in new customers entering hardship or receiving assistance. However, we recognise that some individuals and businesses are navigating these challenging circumstances.

…Reflecting this raised risk in the external environment, we have increased our collective provisions, with our coverage ratio up 4 basis points. We continue to watch the situation closely.

The result announced today confirms our actions to reset the bank are working, but we have more to do. As we look ahead, we continue to focus on executing our ANZ 2030 strategy as we progress our five-year journey to be the best bank for customers and shareholders in Australia and New Zealand         

ANZ borrowers (and prospective borrowers) will also have to deal with the flow-on effects of the Australian Federal Budget, including potentially lower investor demand due to changes to negative gearing and capital gains tax (CGT).

Overall, while ANZ is doing its best to reduce its cost base and become more profitable, it’s operating in a difficult environment.

According to the projection on Commsec, ANZ is expected to maintain its dividend at $1.66 per ANZ share in FY27.

That means it would offer the same dividend yield next financial year – 4.6% excluding franking credits and 6.1% including franking credits.

In my view, there are other ASX shares that could be better buys for the long-term.

The post Here’s the dividend forecast out to 2027 for ANZ shares appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to get $50k per year in passive income?
• How many Westpac shares do I need to buy for $10,000 of passive income?
• 5 best ASX 200 financial shares of FY26
• 9 ASX 200 shares with renewed buy ratings for FY27
• This is the ASX bank stock I would buy today for franked dividend income

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.

Veteran index fund and exchange-traded fund (ETF) provider Vanguard recently announced a new slate of ASX ETFs. Amongst them was the Vanguard International Shares High Yield ETF (ASX: VIHY).

ASX shares are well known for their income potential (not to mention those beloved franking credits). So this new ASX ETF has some stiff local competition. Additionally, the ASX is also home to a few ASX ETFs, both locally and internationally focused, that prioritise generating dividend income for their investors. Some popular examples include the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD) and the State Street SPDR S&P Global Dividend ETF (ASX: WDIV).

So today, let’s see how this new ASX ETF from Vanguard measures up.

What’s in this new VIHY Vanguard ETF?

To start off with, the Vanguard International Shares High Yield ETF tracks the FTSE All-World ex Australia High Dividend Yield Net Tax Index. This index represents more than 2,300 individual dividend stocks from all over the world. VIHY itself currently holds around 1,600, so already we can see that this is a relatively massive fund in terms of scope.

Like many internationally-focused ETFs in Australia, VIHY is America-heavy. As of 31 May, 41% of its portfolio consisted of US stocks. Japan contributed the next-highest weighting at 9.9%, followed by the United Kingdom (7.1%), Canada (4.6%), Switzerland (4.5%), France (4.4%), and Taiwan (3.5%).

But let’s get into what this ASX ETF actually holds in its portfolio.

Many of its top holdings are well-known US dividend payers. These include JPMorgan Chase & Co, Exxon Mobil Corp, Johnson & Johnson, Cisco Systems, Chevron Corp, Coca-Cola, Philip Morris International, Toyota, and Procter & Gamble.

Moving on to this ASX ETF’s dividend potential, VIHY pays out its dividend distributions quarterly. It has only declared one payment to investors so far, a dividend distribution worth 49.49 cents per unit. This will be paid out later this month on 16 July.

If we annualise this payment (by assuming that its next three match its first), we get a potential 12-month dividend distribution total of $1.98 per unit. At the current (at the time of writing) price of $54.68, we get a potential yield of 3.62%.

Now, that’s very arbitrary at this stage. We don’t yet know what VIHY’s next few dividend payments will look like. However, if investors are looking for an easy income investment that would diversify an ASX-heavy dividend portfolio, this ASX ETF might be worth considering.

 

 

 

 

 

The post VIHY: Is Vanguard’s new ASX dividend ETF a buy for income? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy with $5,000 this week
• 2 ASX shares near 52-week lows I’d buy today
• VAS vs. VHY: Which is the better ASX ETF for retirement?
• Where to invest $50,000 in ASX ETFs this month
• How much do I need in my superannuation to get $50k per year in passive income?

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Sebastian Bowen has positions in Coca-Cola, Philip Morris International, and Procter & Gamble. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Chevron, Cisco Systems, and JPMorgan Chase. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and Philip Morris International. 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.