3 ASX dividend shares for lazy investors

These three businesses could pay dividends for life.

Key points
  • Telstra is starting to grow its dividend for shareholders again as it invests in 5G
  • Macquarie is a global financial business that is expanding its footprint and growing its dividend
  • Metcash is growing all of its divisions, particularly its most profitable segment -- hardware

One of the main attractions of investing in stocks is how easy it is to receive passive income from ASX dividend shares without having to do any work.

Once we own the shares and have directed where we want the dividends to be paid, we can just watch the dividends roll into the bank account.

Some businesses on the ASX have been going for decades. Having strong and stable operations means they can reward shareholders with dividend payments regularly each year.

While dividends aren't guaranteed, I think the three ASX dividend shares I'm going to talk about are likely to keep paying good dividends for a very long time.

a man lies on his back on grass with his eyes shut and a contented look on his face as though he is dreaming

Image source: Getty Images

Telstra Group Ltd (ASX: TLS)

Telstra is the largest telecommunications business in Australia, and it has been known for paying a decent dividend yield since the GFC.

I am confident Australia will continue to use telecommunications beyond the foreseeable future. Indeed, they may become even more integral.

The capabilities of 5G could mean that the technology may replace the fixed cables of the NBN as a household's preferred way to connect to the internet at some point. If it could win over households, this would be a very useful boost for Telstra's profit margin.

Telstra's profit outlook seems more positive these days as the telco works on lowering costs and increasing revenue, as well as diversifying its operations. Expectations of a higher profit have meant the ASX dividend share has started to increase its dividend.

According to Commsec, the grossed-up dividend yield in FY23 could be 5.8%.

Macquarie Group Ltd (ASX: MQG)

Macquarie is the most impressive bank on the ASX, in my opinion. It's an investment bank, not just a bank in the lending and savings accounts business.

It has a number of divisions, including asset management. This provides it with a consistent source of solid earnings. Macquarie also has a commodities and global markets (CGM) division which has been making a bucketload of money amid the volatility in energy markets over the last 12 months.

The ASX dividend share generates more than two-thirds of its earnings away from Australia and New Zealand. As such, it's a global business.

Its ability to invest and grow anywhere, across a number of financial segments, gives me confidence it can weather any downturn and perform in the long term. One example is its leading role in financing green energy developments.

According to Commsec, Macquarie could pay a grossed-up dividend yield of around 4% in FY23.

Metcash Ltd (ASX: MTS)

Metcash is a diversified business that has three segments. It supplies independent supermarkets, such as IGAs, around Australia. Metcash supplies a number of independent liquor retailers like Cellarbrations, The Bottle-O, IGA Liquor, Thirsty Camel, Duncans, and Porters Liquor.

The business also has a hardware division, which owns the brands Mitre 10, Home Timber & Hardware, and Total Tools.

COVID-19 seems to have changed the way some people shop, with more people preferring their local supermarkets and liking what they're seeing. The company's food revenue continues to grow, liquor is performing well, and hardware has started FY23 strongly.

With hardware now generating the largest part of the company's profit, I think the business has more growth potential.

The ASX dividend share has committed to a dividend payout ratio of 70% of underlying net profit after tax (NPAT).

According to Commsec, Metcash could pay an annual dividend of around 22 cents in FY23, translating into a grossed-up dividend yield of 7.6%.

Motley Fool contributor Tristan Harrison 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 positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Male hands holding Australian dollar banknotes, symbolising dividends.
Dividend Investing

How many BHP shares do I need to buy for $10,000 of passive income?

The mining giant is one of the Australian share market's biggest dividend payers.

Read more »

Man with his hands out as if pondering his options.
Exchange-Traded Funds (ETFs)

Do you own this ASX dividend ETF? Fundie explains why 'we aren't fans'

This ASX ETF aims to maximise income using covered call options.

Read more »

Australian dollar notes in a nest, symbolising a nest egg.
Dividend Investing

2 ASX dividend shares with yields above 7%

These businesses are providing significant passive income.

Read more »

A man closely watches a clock.
Dividend Investing

17 ASX shares going ex-dividend next week

Washington H. Soul Pattinson, Perenti, Civmec, and other ASX shares are set to go ex-dividend.

Read more »

A businessman's hands surround a circular graphic with a United States flag and dollar signs.
Dividend Investing

IVV ETF and other iShares funds are paying dividends today. Here's how much

Aussie investors love the IVV ETF, which tracks the US benchmark S&P 500 Index.

Read more »

Elderly woman typing on a laptop.
Dividend Investing

Wesfarmers vs Coles: Which dividend share is better for retirees?

Wesfarmers and Coles are ASX dividend titans for retirees, but I think one shades the other right now.

Read more »

House models with REIT written on one.
Dividend Investing

3 ASX real estate investment trusts paying a dividend yield of more than 7%

If you're after income, these shares could be worth a look.

Read more »

Small kid giving a thumbs up.
Dividend Investing

$4,000 buys 3,065 shares in an impressively reliable ASX dividend stock

This investment is paying incredibly impressive dividends.

Read more »