Looking to retire? Buy these ASX dividend shares for passive income

Analysts think these income stocks are in the buy zone right now.

| More on:
Smiling elderly couple looking at their superannuation account, symbolising retirement.

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

If you're building a retirement portfolio, then owning some ASX dividend shares that provide a decent source of passive income is always a good idea.

But which ones could be quality options this month? Let's take a look at three for income investors to consider now:

APA Group (ASX: APA)

When looking for ASX passive income options, it's always good to find stable businesses with the ability to grow their earnings and dividends.

Well, energy infrastructure company certainly ticks these boxes. Its strong business model has allowed the company to increase its dividend each year for almost 20 years.

The good news is that Macquarie feels confident this trend will continue. It is forecasting 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 $8.82, this equates to 6.3% and 6.5% dividend yields, respectively.

Macquarie has an outperform rating and $9.40 price target on its shares.

Aurizon Holdings Ltd (ASX: AZJ)

Another ASX passive income stock for investors to consider buying is Aurizon.

It plays a key role in Australia's supply chain. It transports more than 250 million tonnes of Australian commodities, connecting miners, primary producers and industry with international and domestic markets.

Ord Minnett thinks it would be a great option for income investors. Particularly given that a sizeable dividend increase could be on the cards next year.

It is forecasting partially franked dividends of 17.8 cents per share in FY 2024 and then 24.3 cents per share in FY 2025. Based on the latest Aurizon share price of $3.74, this will mean yields of 4.75% and 6.5%, respectively.

Ord Minnett currently has an accumulate rating and $4.70 price target on the company's shares.

Endeavour Group Ltd (ASX: EDV)

As the leading company in alcohol retail, Dan Murphy's owner Endeavour Group could be a great option for passive income from the ASX.

Goldman Sachs certainly believes this is the case. It likes its market leadership position and the defensive nature of the alcohol retail market.

As for income, it is forecasting fully franked dividends of approximately 22 cents per share in both FY 2024 and FY 2025. Based on the current Endeavour share price of $5.21, this will mean dividend yields of 4.2% for both years.

The broker also sees plenty of room for its shares to charge higher from where they trade today, It currently has a buy rating and $6.20 price target on them.

Motley Fool contributor James Mickleboro has positions in Endeavour Group. 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 and Macquarie Group. The Motley Fool Australia has recommended Aurizon. 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

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

This ASX dividend share is predicted to pay a 12% yield in 2026!

This stock could be a significant dividend payer in the years ahead.

Read more »

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

Analysts name 3 high yield ASX dividend stocks to buy

These stocks are tipped to provide larger than average yields in the near term.

Read more »

Five happy young friends on the coast, dabbing and raising their arms in the air.
Dividend Investing

Tax-busters: 5 fully-franked ASX dividend shares I'd buy for FY25

Fully-franked dividends can save you paying some tax this year...

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Dividend Investing

Brokers name 3 ASX dividend shares to buy

Income investors might want to check out these companies.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Dividend Investing

2 ASX shares with shareholder-friendly policies

Meet these two ASX dividend shares with excellent track records.

Read more »

Stethoscope with a piggy bank and hundred dollar notes.
Dividend Investing

Medibank shares: Here's the dividend yield you'll get today

Medibank stock offers a decent dividend yield today.

Read more »

A man clasps his hands together while he looks upwards and sideways pondering how the Betashares Nasdaq 100 ETF performed in the 2022 financial year
Dividend Investing

Does DroneShield stock pay dividends?

Dividends would be the cherry on top for DroneShield's lucky investors.

Read more »

A smartly-dressed businesswoman walks outside while making a trade on her mobile phone.
Dividend Investing

Why Telstra and these excellent ASX dividend stocks could be buys

Analysts have put buy ratings on these income stocks. Here's what sort of yields they are forecasting.

Read more »