One high-yield ASX dividend share I'd buy at $28 for lifelong passive income!

I'd be happy to bet this dividend stock will outlive us all.

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It's hard to recommend an ASX dividend share that one can hold for life, period. That's because the stock market is full of so many unknowns. Much has been made of the fact that the current crop of the largest companies in the world were relative minnows at the turn of the century. Think of the likes of Apple and Alphabet.

But if I had to recommend an ASX dividend share to hold for lifelong passive income, it would be National Australia Bank Ltd (ASX: NAB).

NAB is of course one of the ASX big four bank shares. It holds an entrenched position as the second-largest bank on the ASX. As well as the fourth-largest company overall.

I have no idea where NAB shares will be in 40, 50 or 60 years. But if I had to bet that an ASX share will still be around that far ahead, I would be comfortable with a punt on NAB.

Why this ASX dividend share for lifelong income?

Banks have been a fundamental part of our global financial system for centuries. Time and time again, it has been proven that Australia's big four are almost impossible to disrupt, despite some brave efforts.

A few years ago, so-called neobanks were the talk of the ASX financial town. These 'disrupters' supposedly offered new business models that were primed to upend the ASX banking sector with branchless, digital-only offerings.

Fast forward to today, and most of these neobanks have either hit the wall or else (ironically) been absorbed by one of the big four. NAB itself now owns former neobank 86 400.

ASX bank shares have long been known for their passive income prowess, and NAB is no different.

Today, at the current share price of $28.37, NAB is trading with a trailing and fully-franked dividend yield of 5.68%. NAB, like its big four peers Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ) and Commonwealth Bank of Australia (ASX: CBA), has paid out fat dividends for decades.

I don't expect the entrenched dominance of the big four to change anytime soon. Thus, I don't expect NAB's ability to continue to fund these dividends to change either.

As such, I hold NAB shares in my own portfolio with the expectation of lifelong passive income.

I think NAB is a superior bank and ASX dividend share to both Westpac and ANZ, thanks to its dominance of the business banking market. CBA is arguably the best bank on the ASX. But it does trade at a significant premium to the others.

So I'm happy to hold silver-medallist NAB with this in mind and recommend it to anyone looking for lifelong passive income.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Apple, and National Australia Bank. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet and Apple. The Motley Fool Australia has recommended Alphabet and Apple. 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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