As we enter the first full week of trading in 2025, let's turn our attention to two ASX shares that I believe are well-positioned to deliver market-beating passive income in the new year.
Just what kind of income boost are we talking about?
Well, based on their 2024 trailing yields, if I were to split a $30,000 investment equally among them, I could expect to earn $2,864 in passive income over the next 12 months.
Now, before we dive into the ASX dividend shares in question, do note that we're discussing trailing yields here. While I'm optimistic about the long-term outlook for dividends from both of these companies, future payouts may be higher or lower than what we saw in 2024 based on a variety of company-specific and macroeconomic factors.
Also, remember that a properly diversified portfolio will contain more than just two stocks. While there's no ideal number, 10 is a decent ballpark to aim for, ideally operating across various sectors and locations. This will reduce the chances my passive income stream takes a big hit if any single company or sector unexpectedly hits a rough patch.
With that said…
Two ASX dividend shares for market-beating passive income
The first company I'd invest in for passive income is S&P/ASX 200 Index (ASX: XJO) mining giant Fortescue Ltd (ASX: FMG).
The Fortescue share price has dropped a precipitous 35% over the last 12 months, closing yesterday at $18.05 a share amid generally weak commodity prices in 2024.
But with Chinese President Xi Jinping under pressure to boost the nation's sluggish economic growth, I think we'll be seeing significant new stimulus measures out of China over the coming months. This should help support iron ore prices and the Fortescue share price, as well as those sought-after dividends, in the year ahead.
Which could make the current share price an opportune time to invest $15,000 in Fortescue stock.
At yesterday's closing price, that would net me 831 shares.
As for that passive income, Fortescue delivered $1.97 a share in fully franked dividends in 2024 for a trailing yield of 10.9%. Meaning my 827 shares will get me $1,637.07 in annual dividend income.
Which brings us to the second dividend stock I'd invest the other $15,000 in, ASX 200 energy infrastructure company APA Group (ASX: APA).
APA shares closed on Monday trading for $6.93 apiece, leaving the stock down 19% over 12 months.
I also think this retrace represents a strong potential buying opportunity. And on the dividend front, APA Group has increased its full-year payouts every year for the past two decades.
The last two dividend payouts (one which will be paid in March) work out to 56.5 cents a share. This sees APA shares trading on a partly franked dividend yield of 8.1%.
At yesterday's closing price, I could buy 2,164 APA shares with my $15,000, for $1,226.66 in annual dividend income.
Together then, I expect these two ASX dividend stars would deliver a total annual passive income stream of $2,863.73 for a $30,000 investment today.
And, of course, I'll be hoping to see their share prices rebound in 2025 as well.
