Does Westpac stock's 6% dividend yield make it a no-brainer buy for ASX income investors?

When it comes to dividends, does Westpac still measure up?

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Looking at Westpac Banking Corp (ASX: WBC) stock today, and it probably won't take too long for your eye to catch on this ASX 200 bank share's current dividend yield.

At the $21.97 share price that Westpac closed at yesterday, this banking heavyweight currently offers a trailing dividend yield of 6.1%.

That comes from Westpac's last two dividend payments. The first was the final dividend from December last year of 64 cents per share. The second was June 2023's interim dividend of 70 cents per share. Both of those payments came with full franking credits.

This 6.1% trailing dividend yield puts Westpac shares in the upper echelons of what income investors can get from the ASX banking sector right now in terms of passive income. In fact, out of the big four major banks, only ANZ Group Holdings Ltd (ASX: ANZ) currently offers a higher yield (6.18%).

And Westpac's 6.1% is a lot more attractive than the current 4.35% dividend yield offered by Commonwealth Bank of Australia (ASX: CBA) shares.

So this prompts the question: is Westpac stock a no-brainer buy for dividend income going forward?

Is Westpac stock's 6.1% dividend yield too good to pass up for passive income?

Well, one ASX broker certainly thinks so. As we covered earlier this month, broker Morgans is currently recommending Westpac stock with an add rating.

The broker has a $24.22 12-month share price target on Westpac right now, thanks to its belief that this bank has "the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful".

But in some even better news for dividend investors, Morgans is also anticipating that Westpac will be able to keep raising its dividends over the next year or so. It has a total of $1.49 per share in dividends pencilled in for FY2023 from Westpac, rising to $1.52 per share for FY2024.

If Morgans is on the money with its latter prediction, it would give Westpac stock a forward dividend yield of 6.92% at current pricing.

So it's clear that this ASX broker reckons Westpac stock is a no-brainer buy for dividend income today. But let's see what this ASX 200 bank share pulls out of its dividend hat when it delivers its full-year results in November.

Motley Fool contributor Sebastian Bowen 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.

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