Westpac Banking Corp (ASX: WBC) shares are a popular option for dividend income.
That's because each year Australia's oldest bank shares its profits with investors in the form of dividends.
Sometimes it also finds other ways to return the funds, such as through share buybacks.
In respect to dividends, Westpac will be making its next payout on Tuesday of next week. It will be paying a fully franked 72 cents per share dividend, which is the equivalent of a 3.2% dividend yield at current prices.
Unfortunately, the rights to that dividend are now settled. So, even if you were to buy shares today, the dividend wouldn't end up in your bank account, it would stay with the seller of Westpac's shares.
But don't worry, in another six months it will be almost time for the next Westpac interim dividend.
But what will that look like?
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Westpac dividend outlook
Well, the good news is that the team at Goldman Sachs believes that there will be a small increase to the Westpac full-year dividend in FY 2024.
It is forecasting an increase from $1.42 per share to $1.44 per share. Based on the current Westpac share price of $22.39, this will mean a fully franked yield of 6.4%.
And if consistency is appealing to you, then you'll love Westpac's shares. That's because Goldman believes the Westpac dividend will remain at $1.44 per share all the way through to FY 2026.
So, that's three years of 6.4% dividend yields you can look forward to. Though, of course it is worth remembering that a lot can change in the banking sector between now and then, so these forecasts could change in time.
Goldman currently has a neutral rating and a $22.70 price target on the bank's shares.
