If I invest $10,000 in Westpac shares, how much passive income will I receive in 2027?

Westpac Banking Corp (ASX: WBC) shares may be one of the most popular options for dividends on the ASX due to the company's perceived stability and dividend yield.

The ASX bank share typically has a larger dividend yield than competitors like Commonwealth Bank of Australia (ASX: CBA) and Macquarie Group Ltd (ASX: MQG), which remains the case. It also usually has a similar dividend yield to stocks like ANZ Group Holdings Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB).

Thankfully, Westpac has increased its payout substantially since 2020, when it was forced to reduce it.

The bank's dividend grew again in the FY26 half-year result as the business delivered a slight 1.3% rise of the dividend per share to 77 cents. This was funded by a 1% increase of the underlying net profit after tax (NPAT).

In this article, we're going to look at Westpac's potential 2027 financial year annual dividend, which will be paid during 2027.

2027 dividend projection for owners of Westpac shares

According to Commsec's projection, the ASX bank share is expected to pay an annual dividend per share of $1.55 in FY27. That would represent a year-over-year increase of less than 1%. But growth is growth.

At the time of writing, this forecast translates into a dividend yield of 4.25% excluding franking credits and 6.1% including franking credits.

If someone were to invest $10,000 in Westpac, they would be able to buy 274 Westpac shares, with a little bit of cash left.

With those 274 Westpac shares, investors may receive $424.70 of cash dividends and $606.71 overall, including the franking credits.

Is this a good time to invest in the ASX bank share?

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

Of those nine, six of them were a sell and three of them were a hold. Therefore, the investment professionals are mostly negative about the appeal of the ASX bank share's valuation right now.

The average price target of those nine ratings is $32.70. That means, collectively, those analysts are projecting the Westpac share price could drop by around 10% within the next year.

The Westpac share price was last that low in July 2025 – within the last 12 months – so it's not crazy to think the bank could drop back to that level.

For now, there seem to be more appealing ASX shares out there to buy.

The post If I invest $10,000 in Westpac shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

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 Macquarie Group. 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.

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