I think that buy and hold investing is one of the best ways to grow your wealth.
And if you can find some quality ASX dividend shares to hold for the long term, there's potential for big passive income in the future.
But which shares would be great long term picks for income investors?
If I were building a portfolio to generate income and long-term wealth over the next 20 years, here are five ASX dividend shares I'd be very happy to hold. Let's see what analysts are saying about them:
Accent Group Ltd (ASX: AX1)
Accent Group owns some of Australia's most recognisable footwear brands, including The Athlete's Foot, Hype DC, Skechers, and Platypus. It has carved out a dominant position in a niche where scale, exclusive distribution deals, and brand loyalty matter.
Bell Potter currently rates it as a buy with a $2.60 price target. As for dividends, it is forecasting fully franked payouts of 10.2 cents per share in FY 2025 and then 12.7 cents per share in FY 2026. Based on its current share price of $1.79, this would mean dividend yields of 5.7% and 7.1%, respectively.
Coles Group Ltd (ASX: COL)
This ASX dividend share doesn't need much introduction. As one of the two supermarket giants in Australia, Coles offers investors a slice of a defensive, cash-generative business that's deeply embedded in the daily spending habits of millions of Aussies.
Macquarie is a fan of the company and has an outperform rating and $22.00 price target on its shares. In respect to income, it is forecasting fully franked dividends per share of 67 cents in FY 2025 and then 74 cents in FY 2026. Based on its current share price of $20.84, this would mean yields of 3.2% and 3.6%, respectively.
Lovisa Holdings Ltd (ASX: LOV)
Lovisa might not be top of mind for dividend investors — but it should be. This fast fashion jewellery retailer has been a quiet global expansion machine, entering new markets at speed and with consistently strong store-level returns. And due to a significant pullback in its share price, it now offers an attractive dividend yield.
Bell Potter, which has a buy rating and $30.00 price target on its shares, expects dividends of 71.1 cents in FY 2025 and then 76.9 cents in FY 2026. Based on its current share price of $23.96, this equates to dividend yields of 3% and 3.2%, respectively.
Treasury Wine Estates Ltd (ASX: TWE)
Treasury Wine's focus on premium and luxury wine brands like Penfolds has helped it build a high-margin global business. With China now removing tariffs from Australian wine and premium demand picking up in the US, it could be entering a new growth phase.
Goldman Sachs thinks this is the case and has put a buy rating and $12.90 price target on its shares. In respect to income, it expects partially franked dividends of 42 cents in FY 2025 and then 49 cents in FY 2026. Based on its current share price of $8.86, this would mean dividend yields of 4.75% and 5.5%, respectively.
Universal Store Holdings Ltd (ASX: UNI)
Finally, this youth-focused fashion retailer may not be a household name for all investors, but it's quickly become one of the most consistent dividend payers in the small cap space. With strong same-store sales growth, clever brand curation, and a growing national footprint, this ASX dividend share continues to generate healthy profits.
Macquarie currently has an outperform rating and $9.80 price target on its shares. It also expects fully franked dividends of 33.8 cents in FY 2025 and then 39.5 cents in FY 2026. Based on its current share price of $7.45, this would mean dividend yields of 4.5% and 5.3%, respectively.
