How many Telstra shares do I need to buy to generate $10,000 in passive income?

Telstra pays two fully-franked dividends per year.

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Telstra Group Ltd (ASX: TLS) shares are a great option for passive-income seeking investors.

The telco owns and operates Australia's largest mobile network and is a major fixed-line internet provider.

Telstra is a classic defensive stock because connectivity (including internet and phone services) has become essential infrastructure rather than a discretionary item. This is particularly the case as households and businesses continue to increase their data usage. Its defensiveness means it has a strong competitive advantage over many other ASX shares.

Its defensive nature is also why it has a long-term reputation as a popular ASX dividend stock.

And it's also why the business is able to record long-term stable revenue and earnings.

Its stability and defensive nature means Telstra is able to then pay a consistent and reliable dividend to its shareholders.

A man in a sweatshirt holds two different phones to compare telco services.

Image source: Getty Images

What's the latest from Telstra shares?

At the time of writing, Telstra shares are changing hands for $4.98 a piece. That's around a 2% increase for the year-to-date and practically flat on the trading level seen this time last year.

What dividend is Telstra forecast to pay shareholders in FY26 and FY27?

The telco historically pays its shareholders two fully or partially franked dividends every year, in March and September. 

Telstra most recently paid its shareholders an interim dividend of 10.5 cents per share, 90.48% franked, in March this year. 

Based on the latest forecasts, the telco is expected to pay a total dividend of 20 cents per share in FY26. It is expected to pay a higher 21 cents per share dividend in FY27.

Based on the current share price, that translates to a forward dividend yield of around 4% for FY26. It then translates to around 4.2% for FY27.

How many shares do I need to generate $10,000 in passive income from Telstra dividends?

Using the current $4.98 share price, I've calculated roughly how many shares you'd need to buy.

Assuming Telstra pays 20 cents per share in FY26, investors would need to buy around 50,000 shares in order to earn $10,000 per year in passive income.

To earn the same amount in FY27, assuming the telco pays the forecasted 21 cents per share dividend, investors would need to buy closer to 47,600 shares to earn around the same level of passive income.

What will that cost me?

In order to buy the 50,000 Telstra shares needed for a $10,000 passive income in FY26, at the time of writing, you'd need to invest around $249,000.

For the same level of passive income in FY27, investors would need to buy around $237,000 worth of Telstra shares.

It's certainly not a minor investment, but for passive-income-hunting investors, a regular and reliable dividend payment could be beneficial over the long term.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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