Leading blue-chip shares like Wesfarmers Ltd (ASX: WES) are a popular choice among passive income-seeking investors.
The retail conglomerate has a highly diversified portfolio with exposure to some of Australia's strongest retail brands, including Kmart and Bunnings. The company also has operation office supplies, health and wellbeing, industrials, chemicals, energy, and even more.
As a retail company, Wesfarmers is a classic cyclical stock, but its highly diversified portfolio means it also has some strong defensive qualities.
This year is a great example of the peaks and troughs that a cyclical stock like Wesfarmers can travel through.
Wesfarmers shares have come off the boil in February as Australians tighten their purse strings and prepare for ongoing instability. But then signs of some recovery, forecasts of interest rate cuts and softer-than-expected inflation figures saw the shares swing the other way very quickly.
In mid-May Wesfarmers shares started rebounding, and at the time of writing the shares are trading at one of the highest levels seen since October last year.
That's one of the benefits of cyclical stocks. They tend to outperform during economic recoveries.
Another benefit of Wesfarmers shares is the company's sheer size and market dominance. At the time of writing, the business is the 6th largest company listed on the ASX with a market cap of around $102 billion.
The company is well-established and financially sound with a history of reliable growth and stability.
All these factors combined mean the company can pay its shareholders reliable and consistent passive income.
But what exactly does that passive income look like?
At the time of writing, Wesfarmers shares are trading at $89.91 each. That means a $3,000 investment will buy you around 33 shares.
Wesfarmers pays its shareholders two fully-franked dividend payments per year, payable in March and October.
In March, Wesfarmers paid its investors an interim dividend of $1.02 per share.
And as the company's earnings climb, its payout is expected to rise too.
Analysts tip Wesfarmers to pay an annual $2.13 dividend per share for FY26, and then $2.31 in FY27.
Based on the current $89.91 share price, that translates to a forward dividend yield of around 2.4% for FY26 and roughly 2.6% in FY27.
Using the estimated payout figures above, we can calculate roughly how much income to expect from a $5,000 investment in Wesfarmers shares.
If the conglomerate pays the expected $2.13 per-share dividend in FY26, your 33 shares would generate $70.29 in passive income.
Assuming Wesfarmers then pays the forecasted $2.31 dividend in FY27, those 33 shares would generate another $76.23 in passive income for the year.
That's some great passive income!
The post If I invest $3,000 in Wesfarmers shares, how much passive income will I earn in FY27? appeared first on The Motley Fool Australia.
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 positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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