Wesfarmers Ltd (ASX: WES) shares may be one of the most popular dividend options because of the company's perceived stability and dividend yield.
The ASX retail share usually has a lower dividend yield than other ASX blue-chip shares, such as BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), and Telstra Group Ltd (ASX: TLS).
Wesfarmers has significantly increased its annual payout since the COVID-19 pandemic headwinds in 2020.
The FY26 half-year result was an example of the ASX retail share's stability for shareholders and its ability to regularly increase its dividends.
In the HY26 result, Wesfarmers hiked its interim dividend per share by 7.4% to $1.02 after a 9.3% year-over-year increase of the underlying net profit after tax (NPAT) to $1.6 billion.
In this article, we're going to look at the annual FY27 dividend, which will be paid in 2027.
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2027 dividend projection for owners of Wesfarmers shares
According to CMC Invest's projection, the ASX retail share is expected to pay an annual dividend per share of $2.20 in the 2027 financial year.
At the time of writing, this forecast translates into a dividend yield of 3% excluding franking credits and a grossed-up dividend yield of 4.3% including franking credits.
If someone were to invest $8,000 in Wesfarmers, they would be able to buy 110 Wesfarmers shares (with a little bit of money left over).
With those 110 Wesfarmers shares, investors could receive $242 of cash and $345.71 overall, including the franking credits.
Is this a good time to invest in the ASX retail share?
According to CMC Invest, there have been 7 analyst rating calls on the business in the last 3 months.
Of those seven, one of them was a sell, five of them were holds, and one was a buy. So, the investment professionals are largely neutral on the company's valuation right now.
The average price target of those seven ratings is $76.64. That means, collectively, those analysts are predicting the Wesfarmers share price could rise by around 6% within the next year.
In February 2026, the Wesfarmers share price was almost as high as $90. But since then, it has fallen by close to 20%, making it much cheaper for investors to consider at a time when its key businesses (Kmart and Bunnings) could serve value-seeking customers well amid higher interest rates and stronger inflation.
For now, there seem to be more compelling ASX shares out there to buy.
