S&P/ASX 200 Index (ASX: XJO) shares offer investors an excellent means to build a portfolio that delivers regular passive income.
That's because atop of potentially gaining in value, many ASX 200 shares also pay regular dividends.
Many of them also offer franking credits on their dividend payouts. Meaning the passive income you receive could come with some healthy tax benefits. The value of those benefits will depend on an individual investor's other taxable income.
With that said, here are two ASX 200 shares delivering $910 a year in passive income on a $10,000 investment.
Dividends from copper and iron ore
First up we have mining giant BHP Group Ltd (ASX: BHP).
The BHP share price, pictured below, is up 25% over the past six months.
BHP pays a fully franked, trailing dividend yield of 9.7%.
At that yield, the ASX 200 share pays $485 in passive income per year on a $5,000 investment.
Now, we are talking about the dividends paid out over the past year. And there are no guarantees on the dividend payouts investors can expect from BHP in the 12 months ahead.
But the ASX 200 mining share remains in a strong position. BHP gets most of its revenue from iron ore, with copper its second biggest earner.
Iron ore is currently trading for US$124 per tonne. That's up from less than US$82 per tonne in early November. And with China continuing to reopen from its multi-year COVID closures, I believe investors can expect iron ore prices to remain well above US$100 per tonne over the next year.
The story for copper is similar. The red metal is currently valued at US$8,893 per tonne, up from US$7,627 in early November. In strong demand from the EV markets as well as construction, copper prices should remain resilient in 2023, if the world can avoid slipping into recession.
Which brings us to…
A high yielding ASX 200 energy share
Our second ASX 200 share for passive income is Woodside Energy Group Ltd (ASX: WDS).
The Woodside share price, as shown in the chart below, has gained 14% over the last six months.
Woodside pays a fully franked, trailing dividend yield of 8.5%.
At that yield, this ASX 200 share pays $425 in passive income per year on a $5,000 investment.
Taken together with BHP, the two dividend streams would provide a passive income of $910 per year.
And as with BHP, I believe the outlook for Woodside's dividend payouts and share price remains positive.
Crude oil is well off its March 2022 highs, with Brent crude currently fetching US$84 per barrel. But with limited new investment in exploration and development amid resurgent forecast global demand, I believe oil and gas prices are more likely to rise from here than fall.
Goldman Sachs, for example, forecasts crude oil will head back above US$100 per barrel in 2023.
Foolish takeaway
While these two ASX 200 shares have the potential to offer investors $910 of passive income on a $10,000 investment, there are no guarantees on any future payments. And investors shouldn't forget about the benefits of diversification.
Rather than focus on only these two stocks, investors should identify stocks with similar high yields and strong outlooks to build a portfolio of ASX 200 shares for a healthy passive income stream.
