Commonwealth Bank of Australia (ASX: CBA) shares are among the most popular ASX dividend options because of the company’s perceived stability and dividend yield.

However, the ASX bank share doesn’t usually have the highest dividend yield of its major peers, including 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 has made up for with dividend stability and growth over the last decade and a half.

Commonwealth Bank has grown its payout each year since the COVID-impacted year of 2020.

The recent FY26 result was a great example of the bank’s ability to generate larger earnings and dividends.

In FY26, CBA decided to hike its annual dividend per share by 4% to $5.05 following a 8% rise in statutory net profit to $10.9 billion and a 7% rise in cash net profit to $11 billion.

But, in this article, we’re not thinking about FY26 payments, we’re looking at the FY27 annual dividend, which will be paid in 2027.

2027 dividend projection for owners of CBA shares

According to the projection on CMC Invest, the ASX bank share is projected to pay an annual dividend per share of $5.20 in the 2027 financial year.

At the time of writing, that forecast translates into a dividend yield of 3.3% excluding franking credits and a grossed-up dividend yield of 4.7%, including franking credits.

If someone were to invest $15,000 in Commonwealth Bank, they would be able to buy 94 CBA shares (with a little bit of money left over).

With those 94 CBA shares, investors could receive $488.80 of passive income cash and $698.29 overall, including the franking credits.

Is this a good time to invest in Commonwealth Bank?

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

Of those eight, all of them were a sell rating. So, the investment professionals are very negative on the appeal of the company’s valuation right now.

The average price target of those eight ratings is $122.33. That means, collectively, those analysts are predicting the CBA share price could fall by 23% within the next year. The Commonwealth Bank share price has drifted lower since early August, 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 CBA 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.

Coles Group Ltd (ASX: COL) is one of the first businesses I think of when looking for defensive qualities on the ASX.

Australians still need groceries when economic conditions become difficult, giving the supermarket giant a dependable source of demand.

I think there is also enough growth ahead to make Coles more than simply a defensive holding.

Everyday demand is a major strength

Coles serves millions of customers buying food and household essentials each week.

That gives the business a level of resilience that companies dependent on discretionary spending cannot always match.

Consumers may change what they put in their baskets when budgets become tighter, but grocery spending itself remains difficult to avoid.

Coles also has enormous scale across stores, distribution, online shopping, and its Flybuys loyalty program. I think those customer relationships and infrastructure help reinforce its position in a highly competitive industry.

For investors looking for a share that could hold up reasonably well across a range of economic conditions, those qualities are attractive to me.

There is still a growth story

What strengthens the investment case for me is the opportunity for Coles to improve an already enormous business.

The company has invested heavily in automated distribution centres and online fulfilment infrastructure.

These investments can help Coles move products through its growing network more efficiently, improve availability, and handle growing online demand.

Small operational improvements can become meaningful when applied across a supermarket business of this size.

The earnings forecasts suggest analysts expect those efforts to translate into continued progress.

According to CommSec consensus estimates, earnings per share are forecast to rise from 98.2 cents in FY27 to $1.05 in FY28 and $1.15 in FY29.

That represents cumulative growth of around 17% over those two years.

What about the price?

At around $23.39, Coles trades on a PE ratio of approximately 24 times forecast FY27 earnings, falling to just over 20 times FY29 earnings.

I would not call that cheap. However, I think a premium can be justified for a business offering resilient demand alongside a positive earnings outlook.

Income investors also have something to consider. CommSec consensus estimates point to fully franked dividends of 83.5 cents per share in FY27, 88.8 cents in FY28, and 97.4 cents in FY29.

That starts with a forward dividend yield of around 3.6%, with the potential for the income to increase over time if those forecasts are achieved.

Foolish takeaway

Coles remains one of my preferred defensive ASX shares.

Its grocery business gives it dependable demand, while automation, online shopping, and an expanding Australian population provide opportunities to keep growing.

Coles shares carry a premium, but I think the quality of the business and forecast earnings growth make that price reasonable.

For investors seeking resilience without sacrificing the prospect of long-term growth, I think Coles remains a strong buy.

The post Is Coles still one of the best defensive ASX shares to own? appeared first on The Motley Fool Australia.

More reading

• Coles vs Woolworths shares: One I’d buy and one I’d sell
• How I’d use ASX shares to build wealth outside my superannuation
• 11 ASX 200 shares with reaffirmed buy ratings post-results
• Top 3 ASX 200 shares that lifted their dividend this reporting season
• Own BHP, Woodside or Coles shares? Here’s what investors should know

Motley Fool contributor Grace Alvino 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 countless investing strategies that investors can focus on to generate wealth. 

Two of the most common are growth and value. These two strategies are often viewed as opposing investment styles.

However Global X offers ASX ETFs that combine the best of both worlds.

Growth vs Value

Growth investors seek companies with above-average revenue and earnings growth. 

The attraction is that businesses can sustainably grow their earnings and have the potential to compound shareholder value over time. 

However, it can come with a price. 

As investors become increasingly optimistic about a company’s prospects, its valuation can rise well ahead of its fundamentals.

If expectations are not met, even a high-quality company can experience a significant decline. 

On the other side of the coin sits value. 

Value investors take a different approach, seeking companies that appear inexpensive relative to their fundamentals. 

The challenge is distinguishing between a genuine opportunity and a value trap. 

A company may look cheap because its earnings are deteriorating, profitability is falling or its competitive position is weakening. 

Balancing both using Growth at a Reasonable Price (GARP)

According to Global X, GARP seeks to navigate between these two extremes. 

The opportunity lies where these characteristics intersect. 

GARP doesn’t just blindly pay for growth or buy what looks cheap. It is about finding businesses where the growth opportunity is supported by quality fundamentals and where the price remains reasonable.

Rather than trying to predict which factor will lead the market next, GARP combines several characteristics within a single framework. 

This can provide advisers with a more balanced approach to factor investing, seeking exposure to companies with sustainable earnings growth while maintaining discipline around valuation and quality.

How to invest with GARP principles using ASX ETFs

For investors looking to apply GARP strategy to their own portfolio, there are several ASX ETFs to consider. 

The first is the Global X S&P World Ex Australia GARP ETF (ASX: GARP). 

It provides exposure to approximately 250 global companies that meet the GARP criteria, combining growth, quality and valuation characteristics. 

Since launching in September 2024, GARP has demonstrated the potential of the approach in live market conditions, ranking among the stronger-performing factor strategies over the period.

For investors looking to apply the same framework to Australian shares, an option to consider is the relatively new Global X S&P Australia GARP ETF (ASX: GRPA). 

It provides exposure to approximately 50 Australian companies selected for their combination of growth, financial strength and reasonable valuations. 

It also applies a systematic approach to identifying companies where these characteristics align, but within the Australian equity market.

The post How to balance growth and value using these 2 ASX ETFs appeared first on The Motley Fool Australia.

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• 2 ASX shares I am close to buying in August

Motley Fool contributor Aaron Bell 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.