Westpac Banking Corp (ASX: WBC) shares are among the most popular ASX dividend options because of the company’s reputation as an ASX dividend share with a pleasing dividend yield.

The ASX bank share usually has a higher dividend yield than Commonwealth Bank of Australia (ASX: CBA), though the yield is typically similar to National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ).

If an investor is searching for passive income, then investors may like the idea of Westpac shares over Commonwealth Bank.

Westpac has increased its annual payout each year since the COVID-impacted year of 2020, so it’s pleasing to see the business has delivered regular payout growth for investors.

The FY26 half-year result was a good demonstration of the company’s commitment to regularly paying a good dividend. Statutory net profit rose 3% year-over-year to $3.4 billion and underlying net profit rose 1% year-over-year to $3.5 billion. That profit generation helped Westpac hike its interim dividend by 1.3% to 77 cents per share.

However, in this article, we’re not thinking about FY26’s payments, we’re going to look at the FY27 annual dividend, which will be paid in 2027.

2027 dividend projection for owners of Westpac shares

According to the projection on CMC Invest, the ASX bank share is projected to pay an annual dividend per share of $1.585, which could equate to a possible 2.25% rise year-over-year.

At the time of writing, that forecast translates into a dividend yield of 4.6% excluding franking credits and 6.5% including franking credits.

If someone were to invest $15,000 in Westpac, they would be able to buy 433 Westpac shares (with a little bit of money left over).

With those 433 Westpac shares, investors could receive $686.30 of passive income cash and $980.44 overall, including the franking credits.

Is this a good time to invest in the ASX bank share?

According to CMC Invest, there have been eight analyst rating calls on the business within the last three months.

Of those eight ratings, five were a sell rating, two were a hold rating and one buy rating was a buy. Therefore, investment professionals are, on average, negative on the appeal of the company’s valuation right now.

The average price target of those eight ratings is $33.94. That means, collectively, those analysts are predicting the Westpac share price could fall by 2% (at the time of writing) within the next year. The Westpac share price has drifted slower since April 2026, so we’ll see what happens next.

For now, there seem to be better ASX shares out there that Australians can buy.

The post If I invest $15,000 in Westpac shares, how much passive income will I receive in 2027? 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.

Looking to earn an extra $10,000 a year in passive income by buying quality S&P/ASX 200 Index (ASX: XJO) dividend shares?

We’ll look at two ASX dividend gems below that I think belong in every income investor’s portfolio.

But first, some important reminders.

Diversity and trailing yields

While we’ll look at two quality ASX 200 dividend stocks below, a properly diversified passive income portfolio will contain a lot more than just two stocks. Though there’s no correct number for everyone, around 15 or so is a decent target.

Ideally these companies will operate in various sectors and locations. This will reduce the risk of your income stream taking an outsized hit if any one company or sector runs into headwinds.

Also, bear in mind that the yields you generally see are trailing yields. Future yields may be higher or lower depending on a range of company specific and macroeconomic factors.

Which brings us to…

Two ASX dividend gems for a $10,000 annual passive income

The first ASX dividend gem you may want to buy for passive income is Woodside Energy Group Ltd (ASX: WDS).

Recently trading for $33.00 a share, the ASX 200 oil and gas stock has gained 33% over the past year.

As for that income, Woodside paid (or shortly will pay) $1.63 a share in fully franked dividends over the past year. The stock traded ex-dividend on 3 September. Eligible stockholders can expect to receive that payout on 25 September.

At the recent share price, then, Woodside shares trade on a fully franked 4.9% trailing dividend yield.

The second ASX dividend gem I believe should have a place in every passive income investor’s portfolio is Telstra Group Ltd (ASX: TLS).

Recently trading for $4.76 a share, the ASX 200 telco is down 2.7% over the past 12 months.

On the income front, Telstra has paid (or shortly will pay) two dividends totalling 21 cents a share, franked at 90%. Telstra shares traded ex-dividend on 26 August. Eligible stockholders can expect to receive that payout on 24 September.

At the recent share price Telstra shares trade on a partly franked 4.4% trailing dividend yield.

How much to invest?

Assuming you invest the same amount in each ASX dividend gem, you could expect to earn a yield of 4.7%, based on those trailing yields.

To earn $10,000 a year in passive income, you’d need to invest $212,766 today.

Now, that’s a sizeable amount to invest in one go.

But that’s okay.

Investing is a long game. You can always invest a smaller amount on a regular basis, and you’ll reach your passive income goal in good time.

The post 2 ASX dividend gems I’d buy today for $10,000 a year in passive income appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
• How much superannuation do I need to earn $80,000 per year in passive income?
• 9 ASX 200 shares earning strengthened buy ratings this week
• How much superannuation do I need to earn $100 a day in passive income?

Motley Fool contributor Bernd Struben 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.

Rio Tinto Ltd (ASX: RIO) and Fortescue Ltd (ASX: FMG) shares have delivered markedly different returns over the last three years.

One of the S&P/ASX 200 Index (ASX: XJO) mining giants has smashed the 24.5% gains posted by the benchmark over the past three years (as at 10 September). The other has delivered far less.

So, which was the better investment?

Fortescue shares flounder

Well, it wasn’t Fortescue.

Three years ago, on 8 September 2023, you could have bought Fortescue shares for $19.40 apiece.

So, for $10,000 you could have 515 shares.

On Thursday, shares were trading for $17.61 each, down 9.2% over three years.

But stockholders wouldn’t have done quite that badly.

That’s because if you held Fortescue shares for the past three years, you’d also have received the last six fully franked Fortescue dividend payments totalling $4.15 a share. (The final FY 2026 Fortescue dividend will be paid on 29 September.)

If we add that back into the recent share price, then the accumulated value of the shares you bought in September 2023 is now worth $21.76. And the 515 shares you picked up for $10,000 are worth an accumulated $11,207.

So, what about Rio Tinto?

Buying $10,000 worth of Rio Tinto shares

Unlike Fortescue shares, Rio Tinto shares have strongly outperformed over the past three years.

On 8 September 2023, Rio Tinto shares were trading for $111.17 apiece. Meaning you could have bought 89 shares with a $10,000 investment, with $105 in pocket money left over.

On Thursday, shares were changing hands for $179.33 each, up 61.3% in three years.

Investors have also banked significant passive income from the ASX 200 mining stock along the way.

If you owned Rio Tinto shares for the past three years, you would have received, or will shortly receive, the past six fully franked dividend payments. (The interim 2026 Rio Tinto dividend will be paid out on 24 September.)

All told those six Rio Tinto dividends come out to a rounded $19.18 a share.

If we add that back into the recent share price, then the accumulated value of the Rio Tinto stock you picked up in September 2023 is now worth $198.51 a share.

And the 89 shares you bought for $10,000 are worth an accumulated $17,667.

So, for this time period at least, Rio Tinto clearly takes the prize over Fortescue shares.

How about in 2026?

As of Thursday, the ASX 200 has gained 0.7% year to date.

Over this same time, Rio Tinto shares have gained 21.5% and paid two dividends.

And Fortescue shares have tumbled 20.5% and paid two dividends.

The post $10,00 invested in Rio Tinto and Fortescue shares 3 years ago is now worth… appeared first on The Motley Fool Australia.

More reading

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• How much superannuation do I need to earn $80,000 per year in passive income?
• Iron ore is back below US$100. Are BHP and Rio Tinto shares still buys?
• ASX 200 dives to a 6-week low. What’s behind today’s sell-off?
• How many Fortescue shares do I need to buy to earn $1,000 per month in passive income?

Motley Fool contributor Bernd Struben 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.