Passive income powerhouses! 3 ASX shares I'd consider buying for rising dividends

Here are three ASX dividend shares that I think are worth considering today.

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In today's investment landscape, many Aussies are on the lookout for passive income that offers not only a steady cash flow but also the potential for capital growth.

Among the many options for generating passive income, dividend shares are a standout.

Let's delve into three ASX dividend shares that offer a solid track record of delivering consistent dividends to their shareholders. These ASX shares play a crucial role in their respective sectors, making them even more attractive investment options.

APA Group (ASX: APA)

First up is APA Group, a major player in Australia's energy sector. The company manages the country's largest network of natural gas pipelines, placing it in a critical position in the energy supply chain.

With a strong focus on growing and managing its assets efficiently, APA Group has a solid track record of delivering dividends to its shareholders.

Over the past decade, APA Group has consistently raised its dividends from 38 cents per share (cps) to 56 cps in the 12 months to December 2023.

However, the past year has been challenging for its shareholders. The APA Group share price dropped 16% over the 12 months due to market concerns about the shift to electricity and related regulatory issues.

Despite these challenges, this dip could present a buying opportunity for dividend-focused investors, as APA Group currently offers a dividend yield of 6.6% at its current share price of $8.39.

Sonic Healthcare (ASX: SHL)

Sonic is all about healthcare, providing essential diagnostic services like lab tests and radiology worldwide. Its work supports doctors and hospitals in delivering patient care, and with a global presence, Sonic's diversified operations make it a resilient choice for investors.

Plus, its history of providing consistent dividends makes it an attractive option for income-focused portfolios.

Like APA Group, Sonic has consistently raised its dividends and now pays more than $1 annually — $1.05, to be exact. This represents a dividend yield of 3.95% at the current share price of $26.56.

Recently, the company downgraded its earnings outlook for FY24 as it faces inflationary pressures and currency exchange headwinds.

While this has pushed down the Sonic share price to its near three-year low, insiders are buying the shares at these levels, as my colleague Tristan highlighted.

Steadfast Group Ltd (ASX: SDF)

Last but not least, I think the insurance brokerage firm Steadfast is worth considering for dividend investors. The company operates in the insurance industry and mainly works with independent brokers across Australasia.

Steadfast supports these brokers with technology, market access, and other tools, driving collective strength and growth. This unique model has fuelled Steadfast's steady growth, making it an interesting pick for those considering dividend investments.

Steadfast is the largest general insurance broker network in Australasia and boasts strong business fundamentals. The company's shares have shown stable growth without significant fluctuations in the share price over its history.

Considering this, the recent drop in its share price might be an excellent opportunity to add this name to your portfolio.

At the current Steadfast Group share price of $5.65, the company has a dividend yield of 2.8%.

Motley Fool contributor Kate Lee has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group and Steadfast Group. The Motley Fool Australia has recommended Sonic Healthcare. 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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