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.

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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.

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