While some Fools search to find the next hot growth stock like Appen Ltd (ASX: APX), others are looking to build a high-income portfolio to secure their financial future.
If you're part of the latter group, I've got some good news for you.
Here are 3 top ASX dividend stocks that could help you build a $30,000 per year passive income within 10 years. This hypothetical 10-year, 3-company portfolio kicks off with a $50,000 initial investment into each company.
1. Bank of Queensland Ltd (ASX: BOQ)
While the BOQ share price has been struggling in 2019 amid the fallout from the 2018 Financial Services Royal Commission, the Queensland-based bank is still offering a good yield to investors.
The BOQ share price closed the week at $9.11 per share, 4.21% lower than where it started the year, but is currently paying 8.34% per annum to its shareholders.
Despite the obvious caveat that it could change its dividend payout in coming years, a $50,000 investment in BOQ could net you a tidy $4,200 per year in dividends.
By reinvesting these proceeds each year for the next 10 years, you could be sitting on a tidy investment of $112,000 – enough to net you $9,408 per year in income.
2. Air New Zealand Ltd (ASX: AIZ)
The Air New Zealand share price edged higher last week despite a 31% drop in net profit and the New Zealand flag carrier still boasts a market cap of nearly $3 billion.
Critically, Air New Zealand said it will maintain its dividend, which means the company's annual dividend yield is still sitting at around 8%.
With $50,000 in Air New Zealand in 2019, you could be receiving $3,970 per year, which when compounded over this investment horizon, would result in a $107,000 nest-egg or $8,523 yearly income.
3. Alumina Ltd (ASX: AWC)
The Alumina share price has edged lower in 2019 amid a difficult global pricing environment, but I still think the technicals look solid with supply and demand factors boding well for its future profitability.
Alumina remains a king amongst the ASX dividend stocks, with a current yield of nearly 11% per annum.
Our $50,000 investment in Alumina would net us a tidy $5,470 per year at present, meaning our compounded 10-year holding of $141,205 would bring in around $15,500 per year in passive income.
Our hypothetical 10-year portfolio performance
Without taking into account any capital gains or losses, and assuming our dividend yields were held constant, our 10-year, 3-company portfolio could have grown to $360,205 with a yearly income of around $33,000.
While these assumptions may not hold in the rough and tumble world of ASX investing, it's easy to see that compound returns can be dividends (literally!) over the medium- to long-term.
