Achieving lifelong passive income from ASX dividend stocks is the dream of most investors. Why invest if not to secure a stable stream of passive income that keeps you company throughout your life?
But this is easier said than done. Finding the right shares that will pay you for a lifetime is no easy feat. So let's discuss two candidates I like that just might help get the job done.
2 ASX dividend stocks to buy for lifelong passive income
Coles Group Ltd (ASX: COL)
Coles is an ASX dividend stock we'd all know. The company is the second-largest supermarket operator in the country, owning the Coles chain of grocers, as well as the Liquorland, Vintage Cellars and First Choice Liquor network of bottleshops.
Coles sells us food, drinks and household essentials – all products that none of us can go without. Nothing is certain in the world of investing. But Coles being around to sell us these staples in the coming decades gets pretty close in my view.
As such, this ASX dividend stock could well be worth considering if you want a dividend-paying investment to keep in your passive income portfolio.
Today, Coles shares offer investors a trailing and fully franked dividend yield of just over 3.5%.
Vanguard Australian Shares Index ETF (ASX: VAS)
The beauty of an index fund like this exchange-traded fund (ETF) from Vanguard is its rebalancing methodology. Index funds typically hold all of the shares in an index, weighted in proportion to market capitalisation. But since a company's share price will change all of the time, so will its market cap.
As such, index funds 'rebalance' their holdings every few months to ensure that they are always holding the right companies in their proper proportions.
Over time, this results in the best companies rising to the top, while the losers slowly get weeded out. This makes an index fund a true 'set and forget' investment, that can serve investors well for life.
Most ASX shares on our share market pay dividends. Thus, so does this ETF. In fact, on today's pricing, the Vanguard Australian Shares ETF has a trailing yield of roughly 7%. As such, I think this ETF is another top candidate for investors seeking a lifelong passive income stream.
