Wesfarmers Ltd (ASX: WES) has been a compelling ASX dividend share for a number of years, and that could continue to be the case, based on projected payouts.
Wesfarmers is the business behind a number of leading Australian retail names, including Bunnings, Kmart, Officeworks, Priceline, Target, and others.
It also has a healthcare division and a chemicals, energy and fertiliser segment called WesCEF, which includes its lithium mining operations.
The company has regularly produced impressive results for shareholders and FY26 was no different with solid underlying performance.
In the 2026 financial year, Wesfarmers reported that underlying earnings per share (EPS) grew by 8.3% following 3.4% revenue growth. Bunnings Group saw earnings growth of 5.1% to $2.45 billion and Kmart Group saw earnings growth of 6% to $1.1 billion.
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FY27
The company's FY27 has started off solidly, with good sales growth for both Bunnings Group and Kmart Group. Those are the two core earnings drivers of the business, so it's good to see the company has started FY26 in a good position.
Wesfarmers said that in the first seven weeks of FY27, Bunnings' sales growth was slightly stronger compared to the second half of FY26. Kmart Group sales growth was "in line" with the second half of FY26.
Based on that trading update and commentary on the progress of the rest of the business (including the lithium segment), the projection on CommSec suggests Wesfarmers could grow EPS again in FY27 by around 10%.
However, the current projection suggests the business could deliver an annual dividend per Wesfarmers share of $2.40. That translates into a potential grossed-up dividend yield of 4.3%, including franking credits.
FY28
The forecast suggests that Wesfarmers could increase its payout and earnings in the following financial year.
According to the projection on CommSec, the company is projected to pay an annual dividend per Wesfarmers share of approximately $2.61 in FY28. This would translate into a possible grossed-up dividend yield of 4.7%, including franking credits.
Depending on what happens with the lithium price, the Wesfarmers WesCEF division could play an important role in overall earnings generation.
FY29
For the final financial year of this series of projections, the annual payout could get even better.
According to the projection on CommSec, the business could pay an annual dividend per Wesfarmers share of $2.71 in the 2029 financial year.
If the business does deliver that level of passive income, it would translate into a grossed-up dividend yield of 4.9%, including franking credits.
I think it's one of the most impressive ASX blue-chip shares for dividends, though it's certainly not cheap at this valuation.
