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Should I buy Coles shares for passive income?

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Broker NotesConsumer Staples and Discretionary Shares

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  • Coles Group Ltd (ASX: COL) shares have a lengthy track record of paying two franked dividends a year.
  • On Monday, shares were changing hands for $23.07 each, up 8.1% year to date.
  • As for the latest round of passive income, when Coles released its FY 2026 results on 25 August, the company declared a franked final dividend of 37 cents per share.
  • Adding in the 41 cent per share interim dividend, paid on 30 March, and at the recent share price, Coles shares trade on a franked trailing dividend yield of 3.4%.
  • Atop his buy recommendation on Coles shares, in part for the company's passive income payouts, Evans also issued a buy recommendation for Netwealth Group Ltd (ASX: NWL).

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Coles Group Ltd shares have a lengthy track record of paying two franked dividends a year. Is the S&P/ASX 200 Index supermarket giant a good buy for passive income today?

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Coles Group Ltd (ASX: COL) shares have a lengthy track record of paying two franked dividends a year.

But is the S&P/ASX 200 Index (ASX: XJO) supermarket giant a good buy for passive income today?

We'll look at Catapult Wealth's Dylan Evans recommendation below (courtesy of The Bull).

Atop the passive income on offer, Coles stock has outperformed in 2026.

On Monday, shares were changing hands for $23.07 each, up 8.1% year to date. That compares to the 0.1% loss posted by the ASX 200 this calendar year.

As for the latest round of passive income, when Coles released its FY 2026 results on 25 August, the company declared a franked final dividend of 37 cents per share. That's an increase of 15.6% from the FY 2025 final Coles dividend.

If you held the stock at market close on 2 September, you can expect to see that income hit your bank account tomorrow, on 22 September.

Adding in the 41 cent per share interim dividend, paid on 30 March, and at the recent share price, Coles shares trade on a franked trailing dividend yield of 3.4%.

"The supermarket industry structure remains favourable, with Coles and competitor Woolworths dominating market share," Catapult Wealth's Evans said.

Commenting on Coles FY 2026 results, he noted:

Coles posted group sales revenue of $45.580 billion in full year 2026, up 2.8 per cent on the prior corresponding period. Excluding items, group earnings before interest and tax of $2.322 billion was up 9.9 per cent. Supermarket eCommerce sales was a highlight, growing 26.4 per cent.

Summarising his buy recommendation on Coles shares, Evans concluded, "Coles offers a reliable dividend yield, backed by defensive earnings. Catalysts for growth include online expansion, population growth and supply chain automation."

Atop his buy recommendation on Coles shares, in part for the company's passive income payouts, Evans also issued a buy recommendation for Netwealth Group Ltd (ASX: NWL).

"Netwealth operates a leading investment management platform used by financial advisers in Australia," he said.

As for his outlook on the ASX 200 finance stock, Evans noted:

The company's full year 2026 results continued to deliver strong growth, with the platform's funds under administration increasing 20.3 per cent to $135.7 billion and earnings per share growing 16 per cent to 55.2 cents.

Despite these strong results, the share price has fallen, most likely and partially in response to a compensation payout of about $101 million to members in the collapsed First Guardian Master Fund.

I'll add that Netwealth also provides some passive income, with the ASX 200 stock trading on a 2.2% franked trailing dividend yield.

You are reading our version, not theirs. This is The Motley Fool Australia's report with its verdicts and loaded words taken out. Plain description stays, and so do adjectives that carry a fact, such as "former" or "federal". The reporting, the facts and the quotations are theirs — quotations are never edited — and the indicators beside it measure this version. Hover or tap Adjectives to see every one left in the text.

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  • The Motley Fool Australia Should I buy Coles shares for passive income? plain
  • The Motley Fool Australia Why these ASX dividend shares could be buys for passive income plain

How each outlet filed it

Outlet Niral ScoreAdjectivesSourcingSentimentHappiness
The Motley Fool Australiaas they published this story 16.3 16 45 -0.1 54.6
The Motley Fool Australia 18.5 16 0 0.4 51.5
Mundane Readneutralized from The Motley Fool Australia 12.3 13 45 -0.1 54.6

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