Looking to land $10,000 a year in passive income from top ASX shares to boost your day-to-day lifestyle? Or maybe you're wanting to get set up for a wealthier retirement.
Regardless of your end goals, here's how I'd go about building an ASX share portfolio that pays me $10,000 a year in dividends alone. Of course, I'll aim to invest in stocks that I believe will see their share prices rise in time as well!
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How I'd invest in ASX dividend shares for passive income
First, I'd generally stick to the larger end of the market.
S&P/ASX 200 Index (ASX: XJO) dividend stocks tend to be less volatile than some smaller passive income stocks. And there's usually more readily research available on their financial performance and outlook.
I'd also preference ASX shares paying franked dividends. This will give me credit for the corporate taxes the companies I own shares in have already paid on their profits.
And I won't lose site of the importance of building a diversified portfolio holding a decent number of stocks (say 10), operating in various sectors and locations. This will reduce the overall risk of my passive income taking a big hit if any single company or sector comes under medium-term pressure.
Finally, I'd remember (and so should you) that the yields I see quoted are trailing yields. Future yields can be higher or lower depending on a range of company-specific and macroeconomic factors.
With all that in mind…
Three ASX 200 dividend stocks to buy for passive income
The first top ASX share I'd buy for passive income is mining giant Fortescue Ltd (ASX: FMG).
Fortescue shares have come under pressure amid slumping iron ore prices. But the miner could catch some tailwinds from Labor's proposed $1 billion credits for domestic green iron production.
Over the past year, Fortescue has paid out $1.39 a share in fully franked dividends. At Tuesday's closing price of $15.99, that yields 8.7%.
The second top ASX share I'd buy for my $10,000 a year ASX income portfolio is banking giant ANZ Group Holdings Ltd (ASX: ANZ).
ANZ shares have outpaced the benchmark index in 2025. And over the past 12 months, the bank has paid out two partly franked dividends totalling $1.66 a share.
At yesterday's closing price of $29.84, ANZ trades on a yield of 5.5%.
And the third top ASX share I'd buy to build my passive income portfolio is lenders mortgage insurance provider Helia Group Ltd (ASX: HLI).
Not only are Helia shares up almost 30% over 12 months, but the stock also offers a juicy yield.
Over the last 12 months, the company paid out 84 cents a share in fully franked dividends. At Tuesday's closing price of $5.01 a share, Helia trades on a yield of 16.8%.
How much do I need to invest?
So, if I'd like to start banking my $10,000 in passive income immediately, how much would I need to invest right now?
Well, if I were to invest the same amount across all three ASX dividend stocks above, I'd earn an average yield of 10.3%.
Meaning I'd need to invest $97,087 today.
That's a sizeable amount, I know.
But that's okay. Investing is a long game.
I can also invest a smaller amount each month, and eventually I'll reach my passive income goal.
