Give the gift that keeps on giving: 7 ASX dividend shares I'd buy for a loved one this Christmas

Looking for a gift that literally keeps on giving this Christmas?

a Christmas present wrapped in one hundred dollar notes and finished with a big red bow

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Call me old-fashioned, but I think buying your loved ones an ASX dividend share or two is one of the best gifts you can give at Christmas time. Far from the risk of ending up in a landfill in three months' time, quality ASX dividend shares are literally gifts that keep on giving, providing a stream of passive income (hopefully) for the rest of your days.

But with so many ASX dividend shares to choose from on the share market, picking the right ones can be an offputting task. So today, let's discuss not one, not two, but seven dividend stocks that I think would make for a perfect Christmas stocking stuffer in 2023.

7 ASX dividend shares that would make perfect Christmas presents in 2023

Telstra Group Ltd (ASX: TLS)

We all know Telstra. This ASX 200 telco is the largest telecommunications provider in the country and has formidable market dominance in both fixed-line and mobile services.

I like Telstra as a dividend stock for its defensive earnings base, and reputation as offering the best mobile network in Australia. The latter ensures that many customers simply cannot switch to a competitor. The former gives the Telstra dividend enormous stability.

For a fully-franked yield of over 4.4% today, you could do worse.

Coles Group Ltd (ASX: COL)

Coles is probably going to be a frequent destination for many readers over the coming fortnight. As the second-largest grocer in the country, this company is also a great place to look for a defensive dividend. We all need to eat and drink, and as long as Coles is one of the cheapest places to get life's essentials, its business will be strong.

Why not get some of that Christmas spending back from the Coles dividend for a loved one in 2024? The company offers a fully-franked yield of 4.15% today.

Transurban Group (ASX: TCL)

If, like many Australians at Christmas, you find yourself driving all over a capital city visiting different relatives, you'll probably be employing the services of toll-road operator Transurban. This company owns almost every toll road in Sydney, as well as several across Melbourne and Brisbane.

This dominance, plus Transurban's contracts which usually allow inflation-linked quarterly toll rises, make this company a cash flow machine and a reliable dividend payer. You can buy Transurban shares today with a trailing dividend yield of 4.35%.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Soul Patts is one of my favourite ASX dividend shares on the market. This investment house manages a huge portfolio of assets on behalf of its investors. It has been able to do this with exceptional results, consistently delivering market-crushing returns over the past two decades.

Soul Patts also has the distinction of being the only ASX dividend share that has increased its payouts every single year for 23 years. Now that's a gift worth giving.

Soul Patts shares offer a fully-franked dividend yield of 2.65% at present.

Lottery Corp Ltd (ASX: TLC)

Lottery Corp is a dividend share I'd personally love to own, so I'd be overjoyed if it appeared in my stocking this month.

This company owns exclusive licenses to run lotteries and Keno services in almost all states and territories. Australians tend to buy lottery tickets and play Keno in both good economic times and bad. That makes Lottery Corp an exceptionally reliable dividend stock.

Today, you can nab Lottery Corp shares at a fully-franked dividend yield of 2.98%.

National Australia Bank Ltd (ASX: NAB)

We can't have a dividend wish list without at least one ASX bank share. And my pick of the bunch at the moment is NAB. I view NAB as one of the most well-run banks on the ASX. It may not have the size and scale of Commonwealth Bank of Australia (ASX: CBA).

But it makes up for that with a much higher dividend yield. Today, NAB shares come with a fully-franked trailing yield of 5.64%. That's even better than a NAB term deposit.

Vanguard Australian Shares Index ETF (ASX: VAS)

Last but not least, we have an exchange-traded fund (ETF) from Vanguard to conclude with. This is a unique investment on this list because rather than a single company, it represents an investment in 300 different ones. Specifically, the 300 largest shares on the ASX.

This Vanguard ETF holds all of the other shares I've mentioned today within its portfolio, as well as probably any other ASX company you can think of. This gives this investment some attractive qualities, such as massive diversification, and a 'bottom-drawer' nature that allows you to set it and forget it.

VAS units pay out dividend distributions every quarter and currently trade on a trailing yield of 3.88%.

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank, Telstra Group, Vanguard Australian Shares Index ETF, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Lottery, Transurban Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Coles Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. 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

Smiling woman holding Australian dollar notes in each hand, symbolising dividends.
Dividend Investing

2 ASX passive income shares paying 8% and 13% yields

I think both these high yielding ASX dividend stocks offer long-term passive income potential.

Read more »

A woman in hammock with headphones on enjoying life which symbolises passive income.
Dividend Investing

After passive income? Check out these ASX 200 dividend shares

ASX dividend shares can provide a reliable source of passive income

Read more »

Australian notes and coins symbolising dividends.
Materials Shares

BHP is paying $2.30 per share in dividends. Time to buy the stock?

Do analysts think the Big Australian is a buy?

Read more »

A couple sits in their lounge room with a large piggy bank on the coffee table. They smile while the male partner feeds some money into the slot while the female partner looks on with an iPad style device in her hands as though they are budgeting.
Dividend Investing

3 ASX dividend shares named as buys for income investors

Analysts think income investors should be snapping up these stocks.

Read more »

ATM with Australian hundred dollar notes hanging out.
Dividend Investing

Buy these ASX stocks for 6% to 8% dividend yields

Big dividend yields are expected from these shares according to analysts.

Read more »

Accountant woman counting an Australian money and using calculator for calculating dividend yield.
Bank Shares

How much do you need to invest in NAB shares for $12,000 in annual dividends?

Enjoying $12,000 in annual dividend income is no easy feat...

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

Here's the Rio Tinto dividend forecast through to 2028

Has the miner's dividend peaked or will it continue to grow?

Read more »

an older couple look happy as they sit at a laptop computer in their home.
Dividend Investing

Buy these ASX dividend shares for passive income

Analysts think these shares could be top options for income investors.

Read more »