Are you looking to build a diversified income stream that can provide steady returns over the long-term?
One way that investors can achieve this is by investing in high-quality dividend-paying ASX shares from across different sectors.
With that in mind, listed below are a couple of ASX dividend shares that have a strong track record of paying consistent dividends and have the potential to grow their payouts over time.
And the good news is that they also have the potential to provide meaningful share price upside from current levels according to analysts. Here's what you need to know about these shares that could provide a reliable and growing stream of passive income:
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Dicker Data Ltd (ASX: DDR)
The first ASX dividend share that could be a top option right now for passive income seekers is Dicker Data.
It is one of the largest technology hardware, software, cloud, cybersecurity, access control and surveillance distributors in Australia and New Zealand.
Over the last decade, the company has been a quiet achiever going from a largely unknown small cap to a $1.5 billion member of the ASX 300 index.
Pleasingly for income investors, the company's dividends have grown along with its stature. For example, in FY 2023 and FY 2024, Morgan Stanley is forecasting fully franked dividends per share of 43.8 cents and 48.8 cents, respectively.
This is more than triple the 14 cents per share it paid in FY 2014 and will mean yields of 5.2% and 5.8%, respectively, based on the current Dicker Data share price of $8.40.
Morgan Stanley also sees scope for its shares to rise by almost 20%. It has an overweight rating and $10.00 price target on them.
Transurban Group (ASX: TCL)
Another ASX dividend share that could provide investors with a reliable and growing passive income stream is Transurban.
Thanks to the strong pricing power that this toll road operator has, together with its positive exposure to inflation, it could be a great long term option for investors.
Citi is positive on the company and is forecasting dividends per share of 58 cents in FY 2023, then 60 cents in FY 2024 and 65 cents per share in FY 2025. Based on the current Transurban share price of $14.60, this will mean yields of 4%, 4.1%, and 4.45%, respectively.
It is also worth highlighting that these dividends are up from 34 cents per share in FY 2014, which demonstrates just how far its payouts have come since then.
Citi also sees decent upside ahead for its shares with its buy rating and $16.00 price target.
