If you are looking for stress-free passive income from Australian dividend shares, then it could be worth checking out the three in this article.
They have been named as buys by brokers and tipped to provide income investors with some great dividend yields. Here's what you need to know about these income options:
Transurban Group (ASX: TCL)
UBS thinks that Transurban could be an Australian dividend share to buy. It is a toll road operator with a collection of key roads across Australia and North America such as CityLink in Melbourne and the Cross City Tunnel in Sydney. It also has significant development pipeline that will keep it busy for many years to come.
The team at UBS believes the company is well-placed to grow its dividend in the coming years. It is forecasting increases to 65 cents per share in FY 2025 and then 69 cents per share in FY 2026. Based on the current Transurban share price of $12.79, this represents dividend yields of 5.1% and 5.4%, respectively.
As well as passive income, the broker sees plenty of upside for its shares. It has a buy rating and $14.55 price target on them.
IPH Ltd (ASX: IPH)
Another Australian share that could be a good source of passive income is IPH. It is an international intellectual property (IP) services company with a network of member firms working across ten IP jurisdictions.
Among its client base are Fortune Global 500 companies, multinationals, public sector research organisations, SMEs, and professional services firms.
The good news for income investors is that demand for IP services remains relatively robust whatever is happening in the world. This means that IPH benefits from defensive earnings, which has allowed the company to increase its dividend each year for the last decade.
Goldman Sachs believes this trend can continue in the near term. It is forecasting fully franked 36 cents per share in FY 2025 and then 39 cents per share in FY 2026. Based on the current IPH share price of $4.97, this represents yields of 7.2% and 7.8%, respectively.
The broker also sees significant value in its shares at current levels with its buy rating and $7.50 price target.
APA Group (ASX: APA)
Finally, a third Australian dividend share that could be a buy for stress-free passive income is APA Group.
It is a leading Australian energy infrastructure company with a $26 billion portfolio of gas, electricity, solar and wind assets.
It has an even better track record than IPH when it comes to dividend increases and is on track for 20 years in a row.
Macquarie then expects the run to continue and is forecasting dividend increases to 57 cents per share in FY 2025 and then 57.5 cents per share in FY 2026. Based on the current APA Group share price of $6.97, this equates to 8.2% and 8.25% dividend yields, respectively.
Macquarie has an outperform rating and $8.23 price target on its shares.
