Which ASX shares I'd buy in a superannuation fund for passive income

I'd definitely buy these ASX shares for income in superannuation.

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It seems clear to me that ASX shares are a great choice for a superannuation fund and retirement because of their ability to pay pleasing passive income.

Businesses are capable of paying a good dividend yield and also growing in value as they re-invest in their operations and increase their earnings.

The ASX has a number of large ASX blue-chip shares like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB). While they usually offer a sizeable dividend yield, these sorts of stocks have shown they are susceptible to dividend cuts in the last few years.

Instead, I'd choose the below two ASX shares for passive income in my superannuation fund because they have both grown their annual ordinary dividend every year for at least a decade.

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

Soul Patts is an investment conglomerate that has been listed since 1903 and has paid a dividend every year since then. It has been a very consistent payer of passive income.

I'd describe the ASX share as the king of dividends in Australia because it has grown its annual ordinary payout every year since 2000. No growth is guaranteed, but Soul Patts has two key goals: growing the dividend and increasing its portfolio value over time.

The business offers good diversification because it invests in other assets where it sees long-term (defensive) growth, including telecommunications, building products, industrial property, resources, financial services, agriculture, swimming schools, electrical parts, retirement living, and many more.

Soul Patts has managed to outperform the S&P/ASX 200 Index (ASX: XJO) over the long term thanks to its investment picks and its focus on what can make good money in both good economic times and tougher times.

I think this is the sort of business we could hold for the rest of our lives. Using the last two declared dividends, it has a grossed-up dividend yield of around 4%.   

Brickworks Limited (ASX: BKW)

Brickworks is an interesting business that is exposed to property in several different ways.

It makes and sells a variety of building products in Australia, including bricks, paving, roofing, cement, and masonry.

What really attracts me to this business as a superannuation fund passive income play are three things.

First, the ASX share hasn't cut its dividend for almost five decades. That's a long history of dividend stability and growth!

Building product demand can be somewhat variable over the years. Thankfully, it has held a large stake in Soul Patts for decades through a cross-ownership partnership. Soul Patts has provided consistent (and steadily growing) dividends to Brickworks over that time, as well as capital growth and asset diversification.

Secondly, in the last two decades, Brickworks has been working with Goodman Group (ASX: GMG) to build large industrial properties on excess land that Brickworks no longer needs in valuable city locations. The joint venture trust continues to grow rental profits and unlock value for Brickworks.

The last two dividends from Brickworks amount to a grossed-up dividend yield of around 3.5%.

Motley Fool contributor Tristan Harrison has positions in Brickworks 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 Brickworks, Goodman Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Goodman Group. 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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