Business · Markets · 20 hrs ago
9,627 Wesfarmers shares could match the maximum Age Pension with franking credits
Wesfarmers owns businesses including Bunnings, Kmart, Officeworks and Priceline.
An opinion piece says 9,627 Wesfarmers shares could provide annual income equal to the maximum Age Pension for a single person, when franking credits are included.
The estimate uses a projected FY27 dividend of $2.34 per share and an annualised pension of about $32,180.
Without franking credits, the estimate rises to 13,753 shares.
Wesfarmers increased its annual dividend by 7.8% to $2.22 in FY26, and analysts expect further increases, but those forecasts are not guaranteed.
The piece also points to the company’s earnings growth and share-price rise as reasons investors may see potential for income and capital growth.
It cautions against putting an entire investment portfolio into one company.
Wesfarmers shares could generate income equivalent to the maximum Age Pension for a single person, including franking credits, according to a Motley Fool AU article.
The article estimates that 9,627 shares would be needed to match the pension using projected FY27 dividends and franking credits.
Without counting franking credits, it estimates that 13,753 shares would be needed.
Wesfarmers’ annual dividend rose 7.8% to $2.22 per share in FY26, and a higher FY27 payout is forecast.
The article notes that dividend forecasts are not guaranteed and cautions against investing an entire portfolio in one company.
- Who
- Wesfarmers and Australians considering income from shares or the Age Pension.
- What
- The article estimates that 9,627 Wesfarmers shares, including franking credits, could match the maximum single-person Age Pension.
- When
- The Age Pension rate is described as current; the estimate uses a projected FY27 dividend.
- Where
- Australia.
- Why
- The article compares projected Wesfarmers dividend income with the maximum Age Pension as an income benchmark.
This story does not have two clearly opposing sides.
I wouldn't suggest putting someone's entire investment portfolio into one business.
Wesfarmers’ board increased the annual dividend per share by 7.8% to $2.22.
The company is projected to pay an annual dividend of $2.34 per share.
- Shares including franking credits
- 9,627
- Shares excluding franking credits
- 13,753
- Maximum single-person Age Pension
- $1,237.70 per fortnight
- Approximate annualised Age Pension
- $32,180
- Wesfarmers FY27 projected dividend
- $2.34 per share
Sources
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