Buy 194 shares in this top ASX 200 dividend stock for $873 in passive income

This top ASX 200 dividend stock boosted its passive income payments after delivering $10.2 billion in FY 2023 profits.

| More on:
a dog sleeping with cucumbers on his eyes

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On the hunt for a top S&P/ASX 200 Index (ASX: XJO) dividend stock to bring in some extra passive income in 2024?

Well, just 194 shares of this ASX 200 dividend stock could deliver $873 a year in passive income. That's almost an extra thousand dollars hitting your bank account before next Christmas to either reinvest or spend on some nice extras.

The company in question is ASX 200 bank stock Commonwealth Bank of Australia (ASX: CBA).

Now before moving on, take note that the yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company-specific and macroeconomic factors.

Also keep in mind that a diversified passive income portfolio should contain at least 10 ASX dividend stocks operating across various sectors.

With that said, here's what CBA's been paying to investors.

Targeting the big bank for passive income

With a market cap of $175 billion, CBA counts as Australia's biggest bank.

While CBA shares trade on a premium to the other big banks, with a price-to-earnings (P/E) ratio of 17.7 times, CBA's share price has gained 3.3% in 2023. That's atop delivering billions of dollars in passive income over the year.

For its full-year FY 2023 results, CBA reported a 6% increase in cash net profit after tax to $10.16 billion. And a 0.17% year-on-year increase in net interest margins (NIM) to 2.07% helped drive a 13% boost in operating income to $27.24 billion.

This saw management boost the final dividend payout by 14% to $2.40 per share, fully franked. Together with the interim dividend of $2.10 per share, that brings CBA's full-year dividend to $4.50 per share.

At Friday's closing price of $104.43 per share, that equates to a fully franked trailing yield of 4.3%.

And it means that I could earn $873 in annual passive income by snapping up 194 shares today. Or when markets open, at least.

Motley Fool contributor Bernd Struben 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A young woman drinking coffee in a cafe smiles as she checks her phone.
Dividend Investing

3 no-brainer ASX dividend shares to buy with $1,000 right now

Analysts rate these income options very highly.

Read more »

Two people lazing in deck chairs on a beautiful sandy beach throw their hands up in the air.
Dividend Investing

Why Macquarie expects this high-yielding ASX 200 dividend stock to outperform

Let's find out.

Read more »

Australian notes and coins symbolising dividends.
Dividend Investing

Why did the Rio Tinto dividend just shrink to 7-year lows?

Rio Tinto just slashed its half-year dividend payout. But why?

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

These top ASX dividend shares offer 5%+ yields

Analysts think income investors should be buying these shares.

Read more »

A piggy bank is surround by hands preparing to pay coins into the slot, representing a company capital raisingh in asx share price represented by multiple hands all placing coins in a piggy bank
Dividend Investing

3 Australian dividend stocks trading at bargain prices

These ASX dividend shares look far too cheap to me.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
Dividend Investing

Invest $5,000 into these ASX dividend stocks in August

Here's what analysts are recommending as buys right now.

Read more »

Young professional person providing advise to older couple.
Investing Strategies

Why franking credits are a powerful bonus for ASX investors

With super tax changes on the horizon, here’s why franking credits matter more than ever.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
Dividend Investing

Buy these ASX dividend shares for passive income

Let's see what analysts are recommending to their clients right now.

Read more »