Brambles Ltd (ASX: BXB) shares are a popular choice for ASX investors looking for passive income.
The ASX blue-chip company is the world's largest supplier of reusable wooden pallets and crates used for storing and transporting goods. It has a huge global footprint and operates in more than 60 countries, primarily under the Chep brand.
The company has been operating for over 150 years and has a strong competitive position in the market.
Brambles' scale, strong cash generation, recurring revenue and long operating history mean it is a classic defensive stock. And these qualities also mean the Australian blue chip is able to pay a regular passive income to its shareholders.
But what if you wanted to generate $5,000 of passive income from Brambles shares every single year? Is it even possible? And if so, what would it entail?
Let's investigate.
What's the latest out of Brambles shares?
At the time of writing, Brambles shares are trading for $19.47 a piece. That's about 15% lower year-to-date and a 16% decline from this time last year.
Brambles shares jumped to an all-time high in September last year, and they stayed relatively consistent for around the next nine months.
But in mid-May, Brambles shares crashed roughly 26% within a couple of days after the company scaled back its guidance figures for FY26.
What dividend does Brambles pay its shareholders?
Brambles historically pays its shareholders two partially franked dividends per year, in April and October.
The company most recently paid shareholders a 32.74 cent interim dividend, with 14.05% franking, in April. Assuming Brambles will pay around the same amount for the second half of FY26, a 65 cent total dividend implies a forward dividend yield of around 3.4%.
How many Brambles shares do I need to generate $5,000 per year in passive income?
Assuming Brambles pays a total FY26 dividend of 65 cents per share, investors would need to buy around 7,692 shares in order to earn around $5,000 per year in passive income.
How much would that cost me?
Based on the current share price of $19.47, in order to buy the 7,692 shares needed for the $5,000 passive income in FY26, you would need to invest around $150,000.
It's not a small amount of money, but if a regular and reliable passive income is your goal, it could be a worthwhile investment over the long-term.
And remember, you don't have to invest the full $150,000 at once. You can slowly build your investment over time and let compounding do the rest.
The post How many Brambles shares do I need to buy for $5,000 per year of passive income? appeared first on The Motley Fool Australia.
Motley Fool contributor Samantha Menzies 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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