According to the latest research from Aussie comparison site Finder, 85% of Australians have "set a financial goal for 2025". That's equivalent to 17.8 million people!
Furthermore, the study indicates around 14% of Aussies are specifically committed to "finding ways to increase earnings" this year.
While there are many ways to increase earnings — working more, creating a side hustle, selling stuff you no longer need — most of us would prefer a method that requires little additional effort.
Enter passive income!
As opposed to active income, which is obtained through the delivery of a service, passive income is defined as earnings that are achieved with very little time and effort.
One great way to earn passive income is to buy small chunks of quality Australian businesses — in other words, ASX dividend shares!
If this sounds like something that might be up your alley, you're in luck!
Because we asked our writers which ASX dividend stocks they reckon make great buys right now.
Here is what the team came up with:
5 best ASX dividend shares for January 2025 (smallest to largest)
- Centuria Industrial REIT (ASX: CIP), $1.81 billion
- Super Retail Group Ltd (ASX: SUL), $3.45 billion
- GQG Partners Inc (ASX: GQG), $5.42 billion
- APA Group (ASX: APA), $8.87 billion
- Telstra Group Ltd (ASX: TLS), $46.68 billion
(Market capitalisations as of market close 10 January 2025)
Why our Fool writers love these passive-income ASX stocks
Centuria Industrial REIT
What it does: This real estate investment trust (REIT) focuses on owning quality industrial properties around Australia's major metropolitan areas to provide a mixture of distributions and potential capital growth.
By Tristan Harrison: I recently decided to invest in this business because I believe it offers one of the most appealing medium-term opportunities on the ASX.
It looks like there's a decent chance the RBA will cut interest rates in 2025 as inflation levels start to cool. A rate cut could be very beneficial for Centuria Industrial REIT because it could boost rental profits (by reducing interest costs), increase the value of commercial properties and boost investor sentiment towards the REIT sector overall.
Furthermore, industrial properties are benefitting from several trends, including increasing rates of online shopping, a growing Australian population, rising data centre demand, and the onshoring of supply chains. These combine to boost the rental potential of the properties and increase their underlying value.
At 30 June 2024, Centuria Industrial REIT had an underlying value – called the net tangible assets (NTA) – per security of $3.87. At the company's current share price, it's trading at a 25% discount to the FY24 NAV. It also expects to grow its distribution by 2% in FY25, making the forward distribution yield 5.6%.
Motley Fool contributor Tristan Harrison owns shares of Centuria Industrial REIT.
Super Retail Group Ltd
What it does: Super Retail is one of the largest retailers in Australia and New Zealand, with around 750 stores. It owns iconic brands Supercheap Auto, BCF, Rebel Sport, and Macpac.
By Zach Bristow: Super Retail has a dominant presence in the Aussie retail space via its ownership of the franchises listed above. These brands are entrenched in our society and are spread across four uncorrelated domains: automotive, outdoor leisure, sport, and outdoor apparel.
The stock cycled last year and was heavily sold after a softer-than-expected trading update in October, with the Rebel business underperforming compared to the rest of the portfolio. Elsewhere, sales were strong, with total sales up 4% year over year.
However, investors have shown support for the stock since late 2024, and shares have since rebounded around 7% off their November lows. Given its generous 4.5% trailing yield and outlook for 2025, I think now is a good time to consider the stock.
Goldman Sachs rates the stock a buy and is bullish on its "continued store roll-out and productivity improvement". The broker forecasts forward dividend yields of 4.2% and 4.6% for FY25 and FY26 respectively, in line with present levels.
It values Super Retail at $17.60 apiece, with a potential upside of around 16% from today's price, rising to around 20% with the dividend yield included.
Motley Fool contributor Zach Bristow does not own shares of Super Retail Group Ltd.
GQG Partners Inc
What it does: GQG Partners is a boutique investment management company that manages global and emerging market equity portfolios for institutions, advisors, and individuals worldwide.
By James Mickleboro: GQG Partners' shares have been under pressure over the past couple of months due to concerns over the company's investments in the Adani Group, which allegedly operated a multibillion-dollar bribery and fraud scheme.
However, GQG's investments in the Adani Group only contribute a very small portion of its profits and the impact on its funds under management (FUM) has been muted so far.
So, with the company's shares down by approximately 30% from their 52-week high, I think now could be a great time to buy this ASX dividend stock. Especially given the very generous dividend yields that are being forecast.
Goldman Sachs is forecasting dividends of 15 US cents (24 Australian cents) in FY 2025 and 17 US cents (27 Australian cents) in FY 2026. Based on the GQG share price of $1.84 at Friday's close, this would mean dividend yields of 13% and 14.6%, respectively.
The broker also sees plenty of upside for GQG shares with its buy rating and $2.80 price target.
Motley Fool contributor James Mickleboro does not own shares of GQG Partners Inc.
APA Group
What it does: APA Group is Australia's largest energy infrastructure company. It owns, manages and operates a diverse $26 billion portfolio of gas, electricity, solar and wind assets.
By Bernd Struben: APA Group has increased its full-year dividend payouts every year now for the past 20 years. In FY 2024, APA Group delivered 56.0 cents per share in partly franked dividends, up 1.8% from FY 2023.
The past two dividend payouts totalled 56.5 cents. The stock traded ex-dividend for the interim payout on 30 December. At the recent share price of $6.91, APA Group trades on a partly franked trailing yield of 8.2%.
Now, the share price has come under pressure over the past year, down 19% in 12 months. While APA shares could continue to trend lower, I believe this represents a good long-term entry point. In FY 2024, the company reported statutory revenue of $2.59 billion, up 7.9% year on year.
Management expects to pay FY 2025 dividends of 57.0 cents per share, an increase of 1.8% in FY 2024.
Motley Fool contributor Bernd Struben does not own shares of APA Group.
Telstra Group Ltd
What it does: Telstra needs little introduction. It is the largest provider of fixed-line internet and mobile telephony services in the country and remains one of the ASX's most popular dividend stocks.
By Sebastian Bowen: Kicking off 2025, it's hard to go past this income stalwart for a solid, upfront dividend payer.
Telstra stock had a relatively muted 2024, with its share price more or less treading water. That was despite a substantial dividend hike last year. However, this has resulted in the company starting 2025 with a strong dividend yield of 4.41% at present.
Telstra provides highly inelastic services. If a recession hits, its customers are unlikely to ditch their mobile phones or home or business internet connections. That makes this company a highly reliable income payer, in my view.
Given Telstra's dividends have always come fully franked, I think the company's current yield is hard to ignore – particularly if interest rates start to fall this year. If they do, I would expect Telstra shares to rise and their yield to fall. As such, I think the telco is well worth a look for income right now
Motley Fool contributor Sebastian Bowen owns shares of Telstra Group Ltd.
