Wesfarmers Ltd (ASX: WES) is a leading blue-chip Australian stock, so it's not surprising that the conglomerate's shares are a popular choice among passive income-seeking investors.
The retail giant has a huge and highly diversified exposure across multiple industries and sectors.
It owns and operates major everyday brands including Bunnings, Kmart, Target, and Officeworks. It also has operations across health and wellbeing, industrials, chemicals, energy, and even more.
At the time of writing, the business is the 6th largest company listed on the ASX with a market cap of around $102 billion.
The company is well-established and financially sound with a history of reliable growth and stability.
As a retail company, Wesfarmers is typically considered to be a cyclical stock. But its highly diversified portfolio means it also has some strong defensive qualities.
That's one of the key benefits of this type of cyclical stock, is that it tends to outperform during an economic recovery.
This year is a great example. Wesfarmers shares crashed in February as Australians tightened their purse strings and prepared for ongoing instability.
But then the stock rebounded strongly starting in late-May after new signs of interest rate cuts and improving inflation figures.
At the time of writing, Wesfarmers shares are trading for $89.54 a piece, which is around 3.5% below a year-to-date peak recorded in late-July.
It's clear that Wesfarmers shares are resilient, and combined with the company's sheer size and market dominance, it has been able to pay its shareholders a consistent passive income.
But what does that passive income look like?
Let's find out.
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How many Wesfarmers shares can I get for $10,000?
The current $89.54 share price means a $10,000 investment will buy you around 112 shares.
What dividend does Wesfarmers pay its shareholders?
Wesfarmers has a long history of paying regular fully-franked dividends dating back to 2004. These are typically paid out every six months, in March and September.
The conglomerate most recently paid its shareholders a fully-franked interim dividend of $1.02 per share in March.
And as the company's earnings climb, its payout is expected to rise too.
Looking ahead, Wesfarmers is expected to pay an annual $2.13 dividend per share for FY26, and then $2.31 in FY27.
Based on the current $89.54 share price, that translates to a forward dividend yield of around 2.4% for FY26. The yield could be roughly 2.6% for FY27.
So, what's the estimated passive income off of a $10,000 investment in FY27?
Using the estimated payout figures above, we can calculate roughly how much income to expect from a $10,000 investment in Wesfarmers shares.
If the conglomerate pays the expected $2.13 per-share dividend in FY26, your 112 shares would generate $238.56 in annual passive income.
Assuming Wesfarmers then pays the forecasted $2.31 dividend in FY27, those 112 shares would generate another $258.72 in passive income for the year.
It's not a mind-blowing amount of passive income. But you're paying for a blue-chip name and the stability that comes with it.
