Westpac Banking Corp (ASX: WBC) shares are ones to consider if you're looking for reliable passive income.
The S&P/ASX 200 Index (ASX: XJO) bank stock has paid two annual fully franked dividends for many years. The one exception is the pandemic addled year of 2020 when the bank gave its interim dividend a miss.
The past year's passive income payments will go some way towards repairing the bank's share price slide.
After closing down 2.6% yesterday at $21.13 per share, the stock is down 13% over the past 12 months.
How much passive income did investors receive from Westpac shares?
Westpac shares delivered a final dividend of 64 cents per share on 20 December.
The board declared an interim dividend of 70 cents per share when the bank released its half-year results on Monday. With profits up 22% year on year to $4 billion, the board increased the interim dividend by 15% from the prior year.
The stock traded ex-dividend yesterday, which helps explain its underperformance on the day. A company's share price often falls in line with its dividend on the day shares trade without the rights to that payout.
Stockholders can expect that interim dividend to hit their bank accounts on 27 June.
That means investors will receive a total of $1.34 in passive income from each Westpac share over the past 12 months.
That works out to a trailing yield of 6.4% for investors who bought in at the current share price.
Or just about $318 in passive income from a $5,000 investment.
What if you bought Westpac shares in June?
June was a tough month for most ASX 200 stocks.
Westpac shares were no exception.
The stock traded at a closing low of $19.19 on 17 June.
Brave or well-advised investors who snapped up shares on the day will be sitting on share price gains of 10%.
Perhaps even better, they'll be earning significantly more passive income.
At that price, Westpac shares traded on a yield of 7%.
Meaning you'd already have netted a handy $349 and change from that $5,000 investment.
