Investors looking for high levels of passive income on the ASX right now arguably don't have a lot of lucrative options to choose from amongst the blue chip ASX dividend stocks.
Commonwealth Bank of Australia (ASX: CBA)'s dividend yield has been ravaged by the bank's seemingly endless share price ascension. CBA is currently trading at just 3.2% today.
Although not as severe, all four of the big ASX banks have also experienced sizeable yield drops over the past year or two, thanks to galloping share prices.
Meanwhile, BHP Group Ltd (ASX: BHP) and Woodside Energy Group Ltd (ASX: WDS) have given investors big dividend cuts over 2024 compared to previous years.
But there is one blue chip ASX dividend stock that I think remains a top choice for positive income seekers today.
It is none other than Telstra Group Ltd (ASX: TLS).
Image source: Getty Images
What makes Telstra shares a top pick for ASX passive income?
Telstra has long been a staple passive income stock on the ASX. This telco has been paying out generous and fully franked dividends for decades now.
These dividends have also held up exceptionally well over recent years, including during the pandemic and the inflationary period that followed. Telstra went from paying 16 cents per share in annual dividends in 2020 and 2021 to 16.5 cents per share in 2022, 17 cents in 2023, and 18 cents this year.
All of those dividends have full franking credits attached.
Despite this, the Telstra share price hasn't really gone anywhere for a while. Today, at the time of writing, you can pick up this telco stock for $3.86 a share, around the same price as you could have back in November 2022.
However, seeing as Telstra has substantially increased its passive income payments since then, it trades on a healthy dividend yield of 4.66% today (6.66% grossed up with Telstra's full franking). That's more than both CBA and National Australia Bank Ltd (ASX: NAB) have on the table.
Given this telco's nature as a provider of telecommunications services, I regard Telstra's passive income stream as highly reliable by ASX standards. Demand for telco services like home internet connections and mobile data plans is very inelastic in our modern world, given their essential roles in everyday life.
This means that Telstra tends to pull in profits (and, by extension, pay dividends) regardless of the health of the overall economy. With all of this in mind, I regard Telstra as a top choice for a passive income investment right now.
