3 safe ASX dividend shares to own for the next 10 years

Analysts think your portfolio would be safe and sound with these stocks.

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If you have a low tolerance for risk but want better yields than those offered with term deposits and savings accounts, then it could be worth checking out the ASX dividend shares in this article.

These companies have defensive earnings, strong business models, and positive outlooks. This could make them safe options for income options to buy today. They are as follows:

APA Group (ASX: APA)

When looking for safe options, it is hard to look beyond utilities. In fact, many investors class them as safe-haven assets and rotate funds into their shares when market volatility increases.

But APA Group has more to offer than just that. The energy infrastructure company's growing cash flow has allowed it to increase its dividend each year for almost 20 years.

The good news is that analysts at Macquarie believe this strong run can continue. It is forecasting further dividend increases to 56 cents per share in FY 2024 and 57.5 cents per share in FY 2025. Based on the current APA Group share price of $8.55, this equates to 6.5% and 6.7% dividend yields, respectively.

Macquarie also sees room for its shares to climb higher. It has an outperform rating and a $9.40 price target on them.

Coles Group Ltd (ASX: COL)

Another ASX dividend share that boasts defensive qualities is supermarket giant Coles.

As we saw through the pandemic, Coles is capable of growing its earnings through any part of the economic cycle. This bodes well for its dividends in the future.

Morgans is bullish on the company and is forecasting fully franked dividends of 66 cents per share in FY 2024 and then 69 cents per share in FY 2025. Based on the current Coles share price of $16.26, this implies dividend yields of 4% and 4.25%, respectively.

As well as a good yield, the broker highlights that "the stock is looking more attractive following the recent pullback in the share price." It has an add rating and an $18.95 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

A final safe ASX dividend share for income investors to look at is telco giant Telstra. As with the others, it has defensive earnings and a positive growth outlook.

In fact, it is for exactly these reasons that Goldman Sachs is tipping Telstra as a buy. It believes "the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive."

As for dividends, the broker is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.64, this equates to yields of 4.9% and 5.2%, respectively.

Goldman has a buy rating and a $4.55 price target on Telstra's shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group, Coles Group, Macquarie Group, and Telstra 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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