Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for dividend-seeking investors who want a consistent and reliable passive income.
The banking giant is typically considered a cyclical stock but also has strong defensive qualities. Its large scale and strong operational performance mean CBA shares can remain resilient amid volatility and outperform during an economic recovery.
It also means that the bank is able to pay shareholders a regular passive income.
But what exactly does that passive income look like?
Let's take a look.
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What's the latest out of CBA shares?
CBA shares are changing hands for $168.57 at the time of writing. The bank shares have had a relatively choppy start to the year, driven by interest rate movements and inflation concerns.
The shares have swung anywhere between $147.22 and $183.52. For the year-to-date, they're up around 4%, at the time of writing, and roughly 1% higher than 12 months ago.
How many CBA shares can I buy for $5,000?
At the current share price of $168.57, a $5,000 investment will buy around 29 shares.
What passive dividend does the banking giant pay its shareholders?
CBA has a long history of paying its shareholders regular fully-franked dividends dating back to 1992. These are typically paid out every six months, in March and September.
The bank most recently paid its shareholders a fully-franked interim dividend of $2.35 per share in late-March.
For FY26, the bank is forecast to pay a total dividend of $5.15 per share, and then $5.45 per share in FY27.
At the time of writing, this translates to a forward dividend yield of roughly 3% for FY26. For FY27, the forward dividend yield is around 3.2%.
So, what passive income can I earn off a $5,000 investment?
I've crunched the numbers, using the estimated dividend payout figures above, to estimate roughly how much passive income investors can expect from a $5,000 investment in CBA shares.
If the banking giant pays the expected $5.15 per-share dividend in FY26, your 29 shares would generate around $149 in passive income.
Assuming CBA then pays the forecasted $5.45 dividend in FY27, those 29 shares would generate around $158 in passive income for the year.
What do brokers tip for CBA shares next? Will they get cheaper or more expensive?
Experts remain bearish about CBA's outlook over the next 12 months.
According to TradingView data, 14 of 16 analysts have a sell/strong sell rating, while the other two rate the ASX bank stock as a hold.
The average target price is $126.86, which implies a potential downside of around 24%. Some are even more pessimistic and have forecast the shares to drop another 47% to $90 each over the next 12 months.
