There's are good reasons passive income investors often hold Commonwealth Bank of Australia (ASX: CBA) shares in their portfolios.
Atop from the potential for share price gains (CBA shares are up 62% over five years), the S&P/ASX 200 Index (ASX: XJO) bank stock has a long history of paying two fully franked dividends per year.
CBA even made two dividend payouts in 2020, despite the COVID-19 stock market madness of that time. And those dividends aren't included in the share price gains I mentioned above.
With that in mind, how much passive income could I earn if I invested $5,000 in CBA shares today?
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Banking on passive income from CBA shares
As CBA just reported its half-year results on Wednesday, we have a better grasp on what kind of dividend payments I might expect from the ASX 200 bank stock in the year ahead.
As for Wednesday's results, CBA reported a 0.2% year on year increase in operating income, which reached $13.65 billion for the six months.
But with expenses up 4% over the half year, the big bank's cash net profit after tax (NPAT) slipped 3% to $5.02 billion.
Still, CBA pleased passive income investors with a 2.4% boost to its interim dividend, which came out at $2.15 per share.
CBA shares trade ex-dividend next Wednesday, 21 February. So if I buy shares today (and hold them at close next Tuesday) I'll be eligible to receive that dividend. I can then expect that payout to land in my bank account on 28 March.
On the back of a strong FY 2023, CBA also paid a final dividend of $2.40 per share on 28 September.
That brings the past 12 months of passive income payouts to $4.55 per share.
At Thursday's closing price of $114.96 a share, CBA shares trade on a yield (partly trailing, partly pending) of 4.0%, with potential tax benefits from those franking credits.
Getting back to our headline question then, I could buy 43 CBA shares today with my $5,000, leaving me with just over $50 in change.
And I could expect $195.65 in passive income over the coming year from those shares.
Of course, I'll also be hoping to see a continuation of the long-term trend that's seen the CBA share price gain 62% over the past five years!
