It's been a rough start to the trading week for most ASX shares so far this Monday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has shed a nasty 1.4% or so and is back to just above 8,500 points. By comparison, Westpac Banking Corp (ASX: WBC) shares are doing quite well.
Westpac is holding its head above water at present. The ASX 200 bank stock is currently up a decent 0.33% at $35.96 a share, easily outperforming the broader market.
Unfortunately for Westpac shareholders, that gain doesn't quite make up for the rough couple of months that this bank stock has endured on the ASX. At today's prices, Westpac remains down by about 7.8% year to date in 2026 so far, and down almsot 16% from the near-$43 levels we were seeing just last month.
However, most investors who own Westpac shares arguably aren't holding them for the capital appreciation potential. As a big four ASX 200 bank share, Westpac is typically beloved as a dividend investment above all else.
So today, let's check out exactly what kind of dividends you can expect from this bank if you buy Westpac shares right now.
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Westpac dividends
At the current Westpac share price, this bank is trading on a trailing dividend yield of 4.28%. This is derived from the latest two dividend payments that Westpac has made to its shareholders. The first of these payments was the final dividend from December last year, worth 77 cents per share. The second is the 2026 interim dividend, also worth 77 cents per share.
Now, the latest dividend hasn't arrived in investors' bank accounts just yet, and is due on 26 June next month. However, Westpac shares have already traded ex-dividend for the payment, meaning it technically contributes to the company's trailing dividend yield.
Both of these dividends came (or will come) with full franking credits attached, as is Westpac's norm.
So Westpac is looking pretty compelling from an income potential standpoint today. However, as any good dividend investor knows, trailing yields reflect the past, not what shareholders will receive in the future. There's no way to determine any ASX's dividend shares' future income potential until the company itself reveals its dividends. Saying that, my Fool colleague Tristan looked at some analyst predictions earlier this month for Westpac shares.
In some potentially good news for investors, analysts are pencilling in $1.625 worth of dividends per share over the 2027 financial year. If that turns out to be the case, Westpac shares could be trading on a forward yield of 4.52% today.
Let's see if that prediction turns out to be on the money.
