That's because Australia's oldest bank shares a good portion of its profits each year with its shareholders in the form of dividends.
But will that be the case in the future? Let's find out what a $10,000 investment could generate.
Generating passive income from Westpac shares
The Westpac share price was fetching $20.86 at the end of last week. This means that if you were to invest $10,000 into its shares, you would end up owning approximately 479 units.
The banking giant has already paid its interim dividend for FY 2023. It paid out a 70 cents per share fully franked dividend in June.
So, while it is too late to get hold of that one, it won't be long until the bank pays its final dividend for FY 2023.
According to a note out of Morgans, its analysts expect a dividend of 76 cents per share to be declared in November and paid in December. This brings Westpac's FY 2023 dividends to $1.46 per share, which will be an increase of almost 17% on FY 2022's dividends.
If Morgans' estimate is accurate, your 479 units would generate a passive income of $335.30 from this interim dividend.
But let's keep going. Morgans expects a modest increase in the Westpac dividend to $1.47 per share in FY 2024. This represents a generous 7% dividend yield and would mean dividends of $704.13 heading your way.
All in all, that's a total of over $1,000 in passive income expected in the space of approximately 14 months from a $10,000 investment.
Another bonus is that Morgans has an add rating and a $22.58 price target on the bank's shares. This means that your 479 units could be worth $10,815.82 this time next year.