Wesfarmers Ltd (ASX: WES) shares may be one of the most underrated dividend picks in the ASX blue-chip space.

It’s normally names like BHP Group Ltd (ASX: BHP) and Commonwealth Bak of Australia (ASX: CBA) that get a lot of the attention from income investors. But, the owner of Bunnings, Kmart, Officeworks, Priceline and several other businesses could be an even better choice.

If an investor put $4,000 to work in Wesfarmers shares, they could unlock a pleasing amount of passive income. Let’s look at the projection for the business and whether it’s an attractive opportunity.

Dividend projection for FY27

Wesfarmers has been steadily increasing its payout for shareholders in the last several years.

In the 2027 financial year, the business announced it would hike its annual dividend by 7.8% to $2.22 following an 8.3% rise of underlying earnings per share (EPS) to $2.534.

Analysts now expect the business can grow its annual dividend in FY27 as well. According to the projection on Commsec, the operator of Bunnings and Kmart could pay an annual dividend per share of $2.34. This would represent a year-over-year increase of 5.4%

At the time of writing, the potential payout of $2.34 per share in the 2027 financial year could translate into a dividend yield of 3% excluding franking credits and 4.3% including franking credits. That’s not the biggest dividend yield on the ASX, but it has become significantly more attractive after the 15% decline of the Wesfarmers share price in the last month.

What a $4,000 investment would do in Wesfarmers shares

At the time of writing, if an investor put $4,000 into Wesfarmers, they’d be able to buy 52 Wesfarmers shares.

Based on the dividend projections, an investor with 52 Wesfarmers shares could unlock $121.68 in dividend cash and $173.83 in grossed-up dividend income, including franking credits.

Is this a good time to invest in Wesfarmers shares?

The company had a solid FY26, with high single-digit underlying EPS growth. Both Kmart and Bunnings delivered mid-single-digit earnings growth during the year, and management reported ongoing solid sales growth for both businesses in the first few weeks of FY27.

Let’s look at Wesfarmers’ appeal to analysts. According to CMC Invest, there have been 11 analyst ratings on the business within the last three months. Two were a buy, three were a hold, and six were a sell.

The average price target from those 11 analysts is $78.46, implying a possible 2% rise over the next year.

That may not be a very compelling return on offer to some investors, so there could be even better ASX shares to consider.

The post If I buy $4,000 of Wesfarmers shares, how much dividend income will I receive? 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 positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you on the hunt for some new additions to your portfolio? 

If you are, then it could be worth seeing if the team at Morgans rates these popular ASX shares as buys this week.

Here’s what the broker is saying about them:

Flight Centre Travel Group Ltd (ASX: FLT)

While Morgans wasn’t blown away with this travel agent’s FY 2026 results, it remains positive.

It continues to believe the Flight Centre share price will be materially higher once operating conditions ultimately improve. As a result, it has a buy rating and $14.25 price target on its shares. It said:

FLT’s FY26 result came in at the lower end of guidance which is disappointing given its 18 June trading update. Leisure was the key miss for us. Corporate had a strong year (+28% NPBT growth), while Leisure was weak (NPBT -22%) given the Middle East conflict. Outlook comments disappointed with Corporate expected to have a weak 1H27, followed by growth in the 2H27. Pleasingly, Leisure is off to a strong start. With one-off costs associated with Productive Operations and World360 Rewards now being placed above the line, we have made minor downgrades to our forecasts. 

While investors will need to be patient for another six months, FLT’s fundamentals remain attractive (FY27F PE of 11.6x) and we retain a Buy rating with a new A$14.25 price target. When operating conditions ultimately improve, both its earnings and share price will be materially higher.

Qantas Airways Ltd (ASX: QAN)

Qantas delivered a result that was in line with expectations in FY 2026 despite facing a major fuel cost headwind.

In response, the broker has retained its accumulate rating (between buy and hold) with a trimmed price target of $10.60. Morgans said:

Strength in the mix – QAN delivered a broadly in-line FY26 result despite a significant fuel cost headwind in 2H26, with a stronger-than-expected performance from Jetstar offsetting softer Domestic earnings. Group Underlying PBT of $2.06bn finished ~3% ahead of consensus, highlighting the resilience and diversification of the earnings base. 

TRASK tailwind emerges – QAN expects Domestic and International TRASK to increase 8-10% in 1H27 while Group capacity remains broadly flat, pointing to a more supportive revenue backdrop despite elevated fuel costs. We maintain our ACCUMULATE rating with a reduced-price target of A$10.60ps (previously $11.50).

Wesfarmers Ltd (ASX: WES)

Wesfarmers also delivered a result that was largely in line with expectations in FY 2026.

And while trading in FY 2027 has been softer than expected, Morgans remains relatively positive. It has an accumulate rating and $85.00 price target on Wesfarmers’ shares. The broker commented:

WES’s FY26 result was broadly in line with expectations, although trading in early FY27 was slightly softer, with management also flagging higher capex in FY27. Earnings from Bunnings, Kmart Group and Health were largely in line with expectations, while Officeworks was slightly above our forecasts. WesCEF was modestly weaker than anticipated. Management noted that while consumer demand remains resilient, cost-of-living pressures persist and customers continue to be value-conscious. We make minimal changes to FY27-29F group EBIT but decrease underlying NPAT by 1-2% due to higher net interest expense. 

Despite these changes, our target price rises to $85.00 (from $81.10) as we believe the increased investments WES is making in the near term will drive sustainable growth over the long term. This is particularly evident across its retail businesses (Bunnings, Kmart Group, Officeworks and Priceline), where investment should strengthen customer value propositions in a subdued consumer environment and position the divisions to capture stronger growth when economic conditions improve. ACCUMULATE rating maintained.

The post Buy, hold, sell: Flight Centre, Qantas, and Wesfarmers shares 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 positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Flight Centre Travel Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a turbulent couple of years for the WiseTech Global Ltd (ASX: WTC) share price.

During this time, the logistics software provider’s shares have been as high as $135.00 and as low as $28.76.

From top to bottom, that is a decline of almost 80%.

Today, the WiseTech share price is trading closer to its lows than its highs at $36.76.

But where could it be in 12 months? Let’s see what a number of analysts are saying about the fallen tech star.

Where is the WiseTech share price going?

The good news is the broker community is overwhelmingly positive on the investment opportunity here and believes there is plenty of upside potential between now and this time next year.

The team at Macquarie, for example, recently put an outperform rating and $48.20 price target on its shares.

Based on the current WiseTech share price, this implies potential upside of just over 30%. 

Elsewhere, Citi and UBS see potential for even more upside over the period. They have buy ratings and $58.75 and $56.00 price targets, respectively, on its shares. This suggests upside of 52% to 60% over the next 12 months.

More bulls

Over at Morgans, its analysts responded positively to the company’s full-year results and put a buy rating and $62.50 price target on its shares. This implies potential upside of 70% for investors over the next 12 months. It said:

WTC’s FY26 result was largely in line with Morgans forecasts (MorgansF), with FY26 revenue of US$1,396m and EBITDA of US$558m coming in towards the lower end of its initial FY26 guidance range. While CargoWise revenue growth of +11% was softer than expected, WTC delivered annualised run-rate savings of ~US$115m in FY26, supporting further margin expansion into FY27. FY27 guidance will see revenue growth 2H-weighted, reflecting the timing of growth initiatives, while Underlying EBITDA guidance of US$725-780m implies EBITDA margins tracking back towards 49-51%. Our Underlying EBITDA forecasts are revised by +3%/-2% in FY27-FY28F and we retain our BUY rating with a price target of A$62.50ps (previously A$67.00ps).

Finally, the team at Bell Potter is even more bullish. Following its results release, the broker retained its buy rating with a trimmed price target of $65.00. Based on the latest WiseTech share price, this suggests that upside of over 75% is possible by this time next year.

Commenting on its recommendation, Bell Potter said:

In our view the issue with the result was the guidance and, in particular, the expected 45%/55% H1/H2 split in CargoWise revenue this year which implies mid single digit growth in H1 and strong double digit growth in H2. While we reflect this skew in our forecasts, we adjust for the risk in our valuation by reducing the multiples we apply in the PE ratio and EV/EBITDA and also increasing the WACC we apply in the DCF. The net result is a 9% decrease in our TP to $65.00 and we retain the BUY.

Overall, if the company executes on its plans and delivers on the market’s expectations, it could be a good 12 months for investors. Though, time will tell if that is the case.

The post Where could the WiseTech share price be in 12 months? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.