
Commonwealth Bank of Australia (ASX: CBA) is typically considered a cyclical stock, but its shares also have strong defensive qualities.
The business is the second-largest company on the S&P/ASX 200 Index (ASX: XJO), with a market capitalisation of $254 billion at the time of writing.
The banking giant has a strong operation performance too.Â
In mid-August, CBA posted a 7% increase in cash NPAT and an 8% increase in statutory NPAT. Operating income also increased by 6.2%. CBA said it is the first time it has reported growth at or above system in each of its five core domestic product categories: home lending, business lending, consumer finance, household deposits, and business deposits.
Its large scale and strong operational performance also mean the company can often remain resilient through times of economic volatility, and its cyclical nature also means it can outperform during times of recovery.
And the bonus for shareholders is that this means the bank can pay a regular passive income.
But what exactly does that passive income look like?
Let’s take a look.
Where are CBA shares trading now?
At the time of writing, CBA shares are $151.62 a piece. The bank shares have had a relatively choppy start to the year, driven by interest rate movements and inflation concerns, but after each decline, the shares manage to bounce back.Â
For the year to date, they’re down around 6% and roughly 10% lower than 12 months ago at the time of writing.
How many CBA shares can I buy for $10,000?
At the current share price of $151.62, a $10,000 investment will buy around 65 shares.
What dividend does the banking giant pay?
CBA has a long history of paying its shareholders regular fully-franked dividends dating back to 1992. These are typically paid out every six months, in March and September.
Last month, as part of its FY26 results announcement, the bank declared a $2.70-per-share fully-franked final dividend and a fully-franked full-year dividend of $5.05, up 20 cents. This is payable to shareholders on the 29th of September. That translates to a yield of around 3.3%.
Forecasts suggest the bank will pay its shareholders closer to $5.45 per share in FY27, and $5.30 per share in FY28.
At the time of writing, this translates to a forward dividend yield of roughly 3.6% for FY27. For FY28, the forward dividend yield is around 3.5%.
So, what passive income can I earn off a $10,000 investment?
I’ve crunched the numbers, using the estimated dividend payout figures above, to work out roughly how much passive income investors can expect from a $10,000 investment in CBA shares in FY27 and even beyond.
If the banking giant pays the expected $5.45 per-share dividend in FY27, your 65 shares would generate around $354.25 in passive income.
Assuming CBA then pays the forecasted $5.30 dividend in FY28, those 65 shares would generate around $344.40 in passive income for the year.
The post  If I invest $10,000 in CBA shares, how much passive income will I receive in FY27? appeared first on The Motley Fool Australia.
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More reading
- Sell alert! Why this expert is calling time on Woolworths and CBA shares
- ASX 200 drops again as selling continues
- Down 12%: Are CBA shares a buy, sell or hold now?
- Westpac, ANZ, NAB or CBA shares? Which ASX bank stock should I buy for $5,000 a year in passive income?
- Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
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.

