Four heavyweight S&P/ASX 50 Index (ASX: XFL) shares have been hammered over the past 12 months, falling between 30% and 60%.

Each ASX 50 share has faced different challenges, but with brokers still seeing substantial upside in several names, investors may be wondering whether the sell-offs have gone too far.

Xero Ltd (ASX: XRO)

The Xero share price has taken a beating, but the business itself continues to grow at a healthy pace. This ASX 50 share delivered FY26 operating revenue of NZ$2.75 billion, up 31%, while annualised monthly recurring revenue jumped 37% to NZ$3.27 billion.

Xero added 506,000 customers during the year, taking its global base to 4.92 million. Management expects another strong year, with FY27 revenue guidance of NZ$3.62 billion to NZ$3.73 billion, implying around 30% growth at the midpoint.

There also appears to be plenty of runway, with Xero previously estimating a total addressable market of around 100 million small and medium-sized businesses.

Brokers remain divided. Citi has a buy rating and $113.60 target, while Morgan Stanley sees $130 and UBS $127. Ord Minnett and Morgans have targets of $110 and $111 respectively. RBC Capital and Jefferies are more cautious, with targets of $85 and $77.

WiseTech Global Ltd (ASX: WTC)

Few ASX 50 shares have experienced a more dramatic rollercoaster than WiseTech. Its shares have traded as high as $135 and as low as $28.76, representing an almost 80% peak-to-trough decline.

At around $37.57 at the time of writing, the stock remains close to its lows after falling approximately 60% over 12 months.

Yet the underlying business continues to grow. WiseTech reported a 46% increase in EBITDA to US$558.4 million for FY26, broadly within its guidance range.

Brokers appear considerably more optimistic than the share price suggests. Macquarie has an outperform rating and $48.20 target, while Citi and UBS have buy ratings with targets of $58.75 and $56 respectively.

Pro Medicus Ltd (ASX: PME)

AI concerns helped hammer this ASX 50 share, but the underlying numbers remain impressive.

Pro Medicus delivered FY26 revenue growth of 22.9% to $261.7 million, while underlying EBIT and NPAT rose 24.4% and 24.1% respectively.

Its Visage imaging software is already used by major healthcare systems across North America, yet management estimates it has captured only around 11% of the US market.

Citi has a buy rating and $225 target, implying around 34% upside. Barrenjoey has a buy recommendation with a $210 target, while JPMorgan is more cautious with a hold rating and $211 target.

REA Group Ltd (ASX: REA)

REA Group has also been under pressure, with this ASX 50 share trading around $168, well below its 52-week high of $242.81.

FY26 revenue increased 7% to $1.79 billion, although net profit fell 19%, partly due to an impairment relating to REA India.

The bigger concern is FY27, with REA warning that new national buy listings could be flat to down by low single digits.

Still, several brokers see value. Morgan Stanley has a $230 target, which points to a 37% upside. This is followed by Ord Minnett at $225 and Morgans at $203. RBC, Jefferies and UBS have targets ranging from $177 to $197.

Macquarie is more cautious at $170, while Bell Potter has a sell rating and $147 target. This suggests a potential loss of 12% at the current share price level.

The post These ASX 50 shares have lost up to 60%. Is the sell-off overdone? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• How to build a winning ASX share portfolio and create wealth
• Top 3 ASX healthcare shares to buy after a brutal year
• 9 ASX shares downgraded by experts post-results this week
• Down another 18%: Why I’d buy WiseTech shares in the dip

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

Passive income can be a good reason to invest in ASX dividend shares.

And fortunately for Aussie investors, there are plenty of options on the local share market.

But which ones could be buys?

Here are three ASX dividend shares that I think could be well suited to investors looking to build passive income.

APA Group (ASX: APA)

APA could be a strong option for passive income. It owns and operates a large portfolio of energy infrastructure assets across Australia, including gas pipelines, processing facilities, storage assets, and electricity transmission infrastructure.

This gives APA a fairly defensive earnings base. Its assets are used to move energy around the country, and a large portion of earnings is supported by long-term contracts and regulated revenue. That can provide a level of visibility that is useful for dividend investors.

APA also has a long history of increasing its distributions over time (around two decades of increases), which adds to the appeal for investors looking to build an income stream that can grow gradually.

In light of this, for investors who want steady income without relying heavily on consumer spending, APA could be worth a closer look.

Transurban Group (ASX: TCL)

Transurban is another ASX dividend share that could be well suited to passive income. It owns and operates toll roads in Australia and North America.

These are valuable infrastructure assets in major cities where congestion is a long-term problem.

That gives Transurban an attractive position. As urban populations grow, more people need to move around cities. Well-located toll roads can help reduce travel times, which supports demand for the company’s roads.

The company also benefits from tolling structures that can provide some protection against inflation. That does not mean traffic volumes will rise every year, but the long-term nature of the assets gives the business a strong income profile.

Its regular dividends could make it a useful option for income investors who want infrastructure exposure alongside passive income.

Woolworths Group Ltd (ASX: WOW)

Woolworths is a different type of ASX dividend share. It does not offer the same kind of dividend yield as many infrastructure or property stocks, but it brings defensive earnings and a strong market position.

The company sits at the centre of everyday household spending. Groceries remain a core expense whatever is happening in the economy, which gives Woolworths a more resilient revenue base than many retailers.

The company has faced cost pressures and intense competition, but its position in Australian food retail remains strong and its outlook is positive.

As a result, for investors looking for passive income backed by a large, mature, cash-generating business, Woolworths could be a solid long-term option.

The post 3 ASX dividend shares perfect for passive income appeared first on The Motley Fool Australia.

More reading

• Looking for income for life? These are the ASX shares I’d consider
• Here’s what brokers tip next for APA, Transurban, Aurizon shares
• Coles vs Woolworths shares: One I’d buy and one I’d sell
• Top 3 ASX 200 shares that lifted their dividend this reporting season
• Australian bond yields are back at 2011 levels. What does this mean for ASX shares?

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) shares may be one of the more popular options for dividends on the ASX.

ASX bank shares can provide investors with a pleasing dividend yield because of a combination of factors.

Banks typically have a relatively low price/earnings ratio (P/E) ratio, meaning a low earnings multiple.

Secondly, banks like Westpac usually have a generous dividend payout ratio. The ASX bank share is paying out a majority of its net profit each year to shareholders.

Let’s look at what Westpac is predicted to pay, which will then inform us how many Westpac shares it would take to unlock $8,000 of passive income.

Dividend projection for the ASX bank share

The ASX bank share’s 2026 financial year is nearly over, so it could be interesting to see what’s predicted for the FY26 annual payout.

But this article will focus on the FY27 annual payout, as investors have already received half of the FY26 payout as an interim dividend.

According to the projection on Commsec, the ASX bank share is predicted to pay an annual dividend per Westpac share of $1.54 in FY26. That translates into a grossed-up dividend yield of 6.3%, including franking credits, at the time of writing.

Time will tell what the board of directors actually do with the Westpac dividend, which will be influenced by the profit that the ASX bank share reports.

Pleasingly for shareholders, the business is predicted to deliver a slightly larger payout in the 2027 financial year, with a year-over-year increase of 0.6% to $1.55 per share. At the time of writing, that translates into a dividend yield of 4.4% excluding franking credits and slightly above 6.3% including franking credits.

$8,000 of passive income from Westpac shares

It will certainly take a sizeable investment to bring that passive income goal to life.

$8,000 would certainly be a lot of passive income from just one stock, but it is possible – it would just require enough of the ASX bank share.

If we assume the ASX bank share does indeed pay an annual dividend per share of $1.55 in FY27, that would require 5,162 Westpac shares if we just focus on the dividend cash.

But, if we also include the franking credits as part of the overall grossed-up dividend income, that would mean investors would only require 3,613 Westpac shares to make $8,000 of annual passive income in FY27.

Is this the right time to invest in the ASX bank share?

It doesn’t seem to be, according to expert analysts. According to Commsec, there are currently nine sell ratings, six hold ratings and just one buy rating on the business.

Therefore, I think it would be a good idea for investors to look at other ASX opportunities.

The post How many Westpac shares do I need to buy for $8,000 of passive income? appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to earn $200 a day in passive income?
• No savings at 30? Here’s how I’d aim to retire early with $1 million buying ASX shares
• ASX 200 bank shares led a financial sector rebound last week
• What’s driving the ASX 200 higher today?
• Westpac shares are under pressure: Is it time to buy the dip?

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.