Westpac Banking Corp (ASX: WBC) stock is traditionally a popular option on the ASX for passive income.
Each year, the bank shares a good portion of its profits with shareholders in the form of dividends.
But while dividends are great to receive, there's no point overpaying for them.
After all, if you overpay, you could end up losing more in share price declines than you would from dividends gained.
So, with that in mind, is Westpac stock a buy for ASX passive income? Let's find out.
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Should you buy Westpac stock on the ASX for passive income?
Unfortunately, opinion remains divided on whether Westpac shares are a good option right now.
For example, if we start with the bears, Morgan Stanley put an underweight rating and $21.70 price target on the bank's shares last week. This implies potential downside of 10% for investors from current levels.
And while the broker is forecasting a $1.44 per share dividend in FY 2024, this attractive fully franked 6% dividend yield won't fully offset that potential downside.
Over at Macquarie, its analysts currently have an outperform rating on Westpac stock. However, the broker's price target of $24.00 is broadly in line with where its shares trade today.
Its analysts are forecasting a $1.42 per share dividend in FY 2024, which represents a 5.9% yield.
The bulls
Finally, the bulls at Ord Minnett see both meaningful upside and a generous dividend yield.
The broker has an accumulate rating and $28.00 price target on Westpac's stock. This implies potential upside of approximately 20% for investors over the next 12 months.
As for passive income for this ASX bank share, its analysts are expecting a $1.45 per share dividend in FY 2024. This equates to a 6% yield at current prices.
