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

Is this bank a good option for income investors?

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A woman in a bright yellow jumper looks happily at her yellow piggy bank representing bank dividends and in particular the CBA dividend

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Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for Australian passive income hunters.

And it isn't hard to see why.

Every year Australia's largest bank shares a large portion of its profits with its shareholders in the form of dividends.

In fact, CBA estimates that on average, $3,532 in dividends was received by retail shareholders in FY 2023.

This was from its fully franked dividend of $4.50 per share, which is the equivalent of a $10 billion return.

But will CBA shares continue to deliver the goods to passive income investors in 2024? Let's take a look and find out what a $10,000 investment could generate.

How much passive income could you get from a $10,000 investment in CBA shares?

Firstly, if you were to invest $10,000 into CBA's shares, you would end up owning 94 units.

According to a note out of UBS from the end of last month, its analysts are expecting the banking giant to increase its dividend by 6.2% to $4.78 per share in FY 2024.

Based on its current share price of $106.44, this equates to a 4.5% fully franked dividend yield. It also means that your 94 CBA shares would yield $449.32 in passive income.

But the dividends won't stop there, thankfully. If you're prepared to keep holding onto the bank's shares, UBS reckons you can look forward to another dividend increase in FY 2025.

This time the broker is forecasting a 6.5% increase to $5.09 per share, which represents a 4.8% dividend yield at current prices.

If UBS is on the money with its forecast, you would receive $478.46 in passive income from your CBA shares that year.

Overall, that's a total income of $927.78 over both FY 2024 and FY 2025 from a $10,000 investment.

Motley Fool contributor James Mickleboro 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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