Buy 194 shares in this top ASX 200 dividend stock for $873 in passive income

This top ASX 200 dividend stock boosted its passive income payments after delivering $10.2 billion in FY 2023 profits.

| More on:
a dog sleeping with cucumbers on his eyes

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On the hunt for a top S&P/ASX 200 Index (ASX: XJO) dividend stock to bring in some extra passive income in 2024?

Well, just 194 shares of this ASX 200 dividend stock could deliver $873 a year in passive income. That's almost an extra thousand dollars hitting your bank account before next Christmas to either reinvest or spend on some nice extras.

The company in question is ASX 200 bank stock Commonwealth Bank of Australia (ASX: CBA).

Now before moving on, take note that the yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company-specific and macroeconomic factors.

Also keep in mind that a diversified passive income portfolio should contain at least 10 ASX dividend stocks operating across various sectors.

With that said, here's what CBA's been paying to investors.

Targeting the big bank for passive income

With a market cap of $175 billion, CBA counts as Australia's biggest bank.

While CBA shares trade on a premium to the other big banks, with a price-to-earnings (P/E) ratio of 17.7 times, CBA's share price has gained 3.3% in 2023. That's atop delivering billions of dollars in passive income over the year.

For its full-year FY 2023 results, CBA reported a 6% increase in cash net profit after tax to $10.16 billion. And a 0.17% year-on-year increase in net interest margins (NIM) to 2.07% helped drive a 13% boost in operating income to $27.24 billion.

This saw management boost the final dividend payout by 14% to $2.40 per share, fully franked. Together with the interim dividend of $2.10 per share, that brings CBA's full-year dividend to $4.50 per share.

At Friday's closing price of $104.43 per share, that equates to a fully franked trailing yield of 4.3%.

And it means that I could earn $873 in annual passive income by snapping up 194 shares today. Or when markets open, at least.

Motley Fool contributor Bernd Struben 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.

More on Dividend Investing

businessman handing $100 note to another in supermarket aisle representing woolworths share price
Consumer Staples & Discretionary Shares

Everything you need to know about the Woolworths dividend

Woolworths will pay out its largest interim dividend in three years in 2024.

Read more »

Man with rocket wings which have flames coming out of them.
Earnings Results

4 All Ords ASX dividend shares going gangbusters on results

All Ords investors are sending these ASX dividend shares soaring on the back of their earnings results.

Read more »

Happy dad watching tv with kids, symbolising passive income.
Dividend Investing

How I built $5,000 of passive income starting with $0

My intake of dividends is continuing to grow.

Read more »

A man raises his reading glasses in a look of surprise.
Dividend Investing

1 ASX dividend stock down 55% to buy right now

Analysts think that this beaten down stock could be a bit of a bargain for income investors.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

Analysts say these ASX dividend shares are top buys

Here are a couple of options for income investors to consider buying right now.

Read more »

Accountant woman counting an Australian money and using calculator for calculating dividend yield.
Energy Shares

Is the 11.3% dividend yield on Woodside shares for real?

Are investors really in line for an 11.3% yield from this oil stock?

Read more »

Yellow rising arrow on a brick wall with a man on a ladder.
Dividend Investing

Owners of Brickworks shares haven't seen a dividend cut for 47 years!

This stock has been building its dividend for a long time.

Read more »

Money Wealth Coin on Shopping Cart and grow up as creative investment ideas.
Dividend Investing

If I invest $10,000 in Woolworths shares, how much dividend income will I receive in 2024?

The supermarket giant is due to report its 1H FY24 results and interim dividend tomorrow.

Read more »