If you're building a passive income portfolio, choosing the right stocks is critical.
You want companies with strong cash flows, reliable dividend histories, and the ability to grow those dividends over time.
Here are three ASX dividend stocks that analysts think could be perfect for a passive income-focused portfolio:
IPH Ltd (ASX: IPH)
The first ASX dividend stock to look at is IPH. It is Australia's leading intellectual property services firm, assisting companies with patents, trademarks, and legal protection.
Its defensive business model, recurring revenue streams, and global growth footprint make it a reliable dividend payer, even through tougher economic conditions.
Morgans is a fan of IPH and has an add rating and $6.30 price target on its shares.
As for income, it is forecasting fully franked dividends of 35 cents per share in FY 2025 and then 36 cents per share in FY 2026. Based on the current IPH share price of $4.60, this will mean dividend yields of 7.6% and 7.8%, respectively.
Telstra Group Ltd (ASX: TLS)
Another ASX dividend stock to consider buying is Telstra. Australian telco giant offers a defensive business model with recurring revenues.
And following its recent turnaround, Telstra's dividend is looking solid again — and its investments in 5G and digital infrastructure should support future growth.
The team at Morgan Stanley expects this to be the case and has put an overweight rating and $4.70 price target on its shares.
In respect to dividends, the broker is forecasting fully franked payouts of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on its current share price of $4.51, this would mean dividend yields of 4.2% and 4.4%, respectively.
Transurban Group (ASX: TCL)
Finally, Transurban could be an ASX dividend stock to buy. It owns and operates toll roads across Australia and North America, giving it predictable, inflation-linked cash flows.
Its infrastructure assets provide consistent income, and the company has a strong history of steadily growing distributions to investors. Its development pipeline should also provide it with a boost in the coming years.
UBS rates the company as a buy with a $14.85 price target. As for income, its analysts are forecasting dividends per share of 65 cents in FY 2025 and then 69 cents in FY 2026. Based on its current share price of $14.09, this would mean dividend yields of 4.6% and 4.9%, respectively.
