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3 quality ASX dividend shares to boost your income

Owning ASX dividend-paying shares has the potential to dramatically boost your income. Companies that pay dividends usually send you a cheque every 6 months – that’s money hitting your bank account with no work done on your part.

If you set up a strategy of putting money aside every month to invest in dividend-paying shares, you can build a growing stream of passive income to use for paying bills, going on extra holidays or even retiring early.

Here are 3 ASX dividend shares I would consider for such an end.

Coles Group Ltd (ASX: COL)

Coles has thoroughly impressed the markets since its spin-off from its old parent company Wesfarmers Ltd (ASX: WES) around a year ago. COL shares have since risen from $12.70 to today’s price of $16.27 (at the time of writing) – an increase of around 28%. I think Coles is a great dividend company to own. It sells groceries and other household essentials – a sector that is both recession and inflation resistant.

Coles’ Smarter Selling cost cutting plan has also been received well, and should give the company plenty of room to increase its dividends in the years ahead. Thus, I think COL shares are a top buy for dividend income today.

Ramsay Health Care Limited (ASX: RHC)

Ramsay is the owner and operator of the largest network of private hospitals in the country, with a growing presence offshore as well. I think Ramsay’s dividend track record speaks for itself – it’s one of the only companies that has delivered a shareholder pay rise every year this century.

With the healthcare needs of our ageing population only set to grow, I think this company would be a great stock to buy and hold for the long-term. Its current yield is sitting on 2.08%, but I expect this to continue to grow over time.

WAM Research Ltd (ASX: WAX)

WAM Research is a listed investment company (LIC), which means it’s a company that invests in other companies for the benefit of its shareholders. WAM Research has a remarkable track record of both growth and dividend income. Through investing in undervalued ASX growth companies, it can build a reserve of profits that WAM Research can return to shareholders as dividends. Using this strategy, WAX shares have delivered an average 16.7% p.a. return since 2010.

Today, WAX shares are offering a starting dividend yield of 6.9%, which is also fully franked. Thus, I think this LIC is a great stock to buy for dividend income today.

Foolish takeaway

I think these 3 ASX dividend shares offer a fantastic opportunity for investors to build a stream of dividend income. All are top notch companies that have a track record of delivering healthy dividend income – and I think will continue to do so for a long time yet.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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