Commonwealth Bank of Australia (ASX: CBA) has long been one of the most popular dividend shares on the ASX.

And with its enormous customer base, strong profitability, and history of returning billions of dollars to shareholders, it isn’t hard to see why.

But how much would you need invested in Australia’s largest bank to generate $10,000 in annual passive income? Let’s take a look.

Why CBA remains popular

When Australians think about dividend shares, CBA is usually one of the first names that comes to mind.

And for good reason. The banking giant has a long history of paying shareholders twice a year, with fully franked dividends that can provide a valuable source of passive income.

But a good dividend history is only part of the story.

What investors like about CBA is its ability to generate billions of dollars in annual profits, giving management plenty of capacity to reward shareholders while retaining enough capital to support the business.

And if those profits continue growing over time, there should be opportunities for dividends to increase as well.

Of course, there are no guarantees. A weaker economy, rising bad debts, or pressure on lending margins could weigh on earnings and dividends.

Nevertheless, CBA arguably has a lot going for it as a long-term income investment, even if its dividend yield isn’t among the highest on the ASX.

So, how much passive income could its shares generate over the next 12 months?

How many CBA shares would you need?

There’s no getting away from the fact that generating $10,000 in annual passive income from CBA shares would require a sizeable investment.

After all, while CBA has a strong dividend history, its shares aren’t offering a particularly high yield at current prices.

Based on its current share price of $149.29 and the consensus FY 2027 fully franked dividend forecast of $5.15 per share, investors are looking at a forward yield of approximately 3.45%.

That means an investor would need to own around 1,942 CBA shares to generate $10,000 in annual passive income, before considering any additional benefits from franking credits.

Buying that many shares today would cost approximately $289,921.

Could the passive income grow?

Looking further ahead, consensus estimates forecast CBA’s earnings and dividends to increase in FY 2028.

The market is forecasting earnings per share of $6.86, which will be up from $6.67 in FY 2027.

This is expected to support an increase in annual dividends to $5.30 per share.

For someone holding 1,942 shares, that would lift annual passive income to approximately $10,293 in FY 2028.

These are only forecasts and actual dividends will depend on CBA’s financial performance and economic conditions. But with its strong market position and history of returning profits to shareholders, CBA arguably remains one of the first ASX shares worth looking at when building a passive income portfolio.

The post How many CBA 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 James Mickleboro 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.

Once again, it was a busy week for Australia’s top brokers. This has led to a number of broker notes being released. 

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Deterra Royalties Ltd (ASX: DRR)

According to a note out of Morgans, its analysts have retained their buy rating on this mining royalties company’s shares with a trimmed price target of $4.75. This follows news that Deterra has announced the acquisition of a royalty on ~84% of Ivanhoe Electric’s Santa Cruz copper project for US$74.15 million in cash. Morgans values the Santa Cruz royalty at A$110 million or A$0.21 per share and expects it to be around 7% earnings accretive. Outside this, the broker sees Deterra Royalties as a formidable inflation hedge with upside leverage to metal prices. The Deterra Royalties share price ended the week at $3.92.

Megaport Ltd (ASX: MP1)

Another note out of Morgans reveals that its analysts have retained their buy rating on this cloud infrastructure company’s shares with an improved price target of $27.00. The broker made the move in response to Megaport lifting its FY 2027 EBITDA guidance by 25% following further contract wins. Morgans highlights that Megaport’s compute and network businesses continue to deliver above expectations, with three new AI infrastructure contracts boasting a total contract value of around $1 billion. Collectively, it believes these set a path for annualised EBITDA in excess of $850 million, which has led to a material increase in Morgans’ earnings per share forecasts. The Megaport share price was fetching $18.78 at Friday’s close.

Mesoblast Ltd (ASX: MSB)

Analysts at Bell Potter have retained their buy rating and $4.45 price target on this biotechnology company’s shares. According to the note, the broker has described Mesoblast as an enigma for most Australian long only institutions. This is despite having achieved multiple clinical trial successes, product approvals, and having revenues likely to exceed US$200 million in FY 2027. However, Bell Potter expects this information gap to close over the coming year as the company delivers on additional wins in the clinic. As a result, the broker sees now as a great time to snap up the company’s shares. The Mesoblast share price ended the week at $2.00.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.

ASX 200 utilities shares led the market sectors with a 3.64% gain last week.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) rose 0.4% to close at 8,716.6 points.

Defensive market sectors represent industries that sell essential goods and services.

They offer stability to investors during tough economic times because consumers continue to buy those goods and services.

Utilities is one example, healthcare and consumer staples are others.

ASX 200 healthcare shares also performed well last week, rising 3.53%.

Consumer staples shares, which incorporate Australia’s supermarkets and food producers, rose 2.31%.

ASX 200 REITs, which are considered somewhat defensive due to their relatively reliable property income, rose 3.58%.

Seven of the 11 market sectors finished the week in the green.

Let’s review.

Utilities shares led the ASX sectors last week

There are only 21 companies in the ASX 200 utilities sector.

Let’s review the performance of individual stocks in order of market capitalisation last week.

The Origin Energy Ltd (ASX: ORG) share price increased 4.31% to $11.37 last week.

The APA Group (ASX: APA) share price rose 2.81% to close at $10.97 on Friday.

Mercury NZ Ltd (ASX: MCY) shares lifted 0.72% to $5.60 per share.

The Meridian Energy Ltd (ASX: MEZ) share price fell 1.14% to $4.34 over the week.

The AGL Energy Limited (ASX: AGL) share price ascended 3.44% to close the week at $8.43.

New Zealand electricity supplier Contact Energy Ltd (ASX: CEN) rose 1.91% to $6.93 per share.

Genesis Energy Ltd (ASX: GNE) shares fell 3.45% to $1.96 per share.

The LGI Ltd (ASX: LGI) share price ripped 23.16% to $2.34 on news of a $22 million acquisition of solar power assets.

Frontier Energy Ltd (ASX: FHE) shares tumbled 13.04% to 20 cents despite no company announcements last week.

The Rivco Australia Ltd (ASX: RIV) share price increased 0.83% to $1.21 per share.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Utilities (ASX: XUJ)	3.64%
A-REIT (ASX: XPJ)	3.58%
Healthcare (ASX: XHJ)	3.53%
Consumer Discretionary (ASX: XDJ)	2.4%
Consumer Staples (ASX: XSJ)	2.31%
Energy (ASX: XEJ)	2%
Industrials (ASX: XNJ)	0.02%
Communication (ASX: XTJ)	(0.19%)
Financials (ASX: XFJ)	(0.31%)
Materials (ASX: XMJ)	(1%)
Information Technology (ASX: XIJ)	(1.97%)

Check out the 17 ASX shares going ex-dividend next week.

The post ASX 200 defensive sectors outperform amid volatile trading appeared first on The Motley Fool Australia.

More reading

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• 17 ASX shares going ex-dividend next week
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• How much superannuation do I need to generate $100,000 per year in passive income?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bronwyn Allen 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 Apa Group. The Motley Fool Australia has recommended LGI Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.