Here's why I own these 3 ASX dividend shares for passive income

These companies pay me handsomely to own them.

As I documented earlier this week, investing for passive dividend income is not a priority for my ASX share portfolio at the present time.

My preference is to buy companies that are growing at healthy paces and reinvesting their cash flows for future growth rather than those that have grown to maturity and are paying out most of their profits as dividends.

But that's not to say I don't own any dividend-paying shares.

As much as I prefer to opt for higher returns over receiving income, I still ensure that my portfolio produces a (relatively small) stream of dividends that I can redeploy into buying other ASX stocks.

So today, let's discuss three such ASX dividend shares that I currently own for their passive income potential.

A happy couple relax in a hammock together as they think about enjoying life with a passive income stream.

Image source: Getty Images

3 ASX dividend shares in my passive income portfolio

Telstra Group Ltd (ASX: TLS)

Telsra might seem like a strange choice for my portfolio, given the preferences I outlined above. The telco was one of my first investments, and I was lucky enough to pick up my shares at under half of their current share price.

Put simply, Telstra has never given me a reason to sell. The company has an extraordinarily resilient earnings base, which delivers healthy profits (and passive income) year after year. Telstra has also been raising its fully franked dividend pretty consistently in recent years, which I am happy to collect every six months.

I may sell my shares at some point. But for now, I'm happy with this passive income heavyweight in my portfolio.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Next, we have investing house Soul Patts, a company that holds a portfolio of underlying investments on behalf of its shareholders. These include ASX shares, unlisted investments, and private credit. This company is so good at doing this that it has managed to achieve the ASX's best dividend record, paying a rising annual dividend every single year since 2000.

It has also delivered plenty of capital growth on top of that, though, resulting in Soul Patts' shares outperforming the broader market over the past ten and 20 years.

I've written about my love of this company before, and it remains one of my favourite investments. Its impressive passive income chops are an essential part of its appeal.

Plato Income Maximiser Ltd (ASX: PL8)

Finally, we have a listed investment company (LIC) in Plato to round out our list. Plato Income Maximiser is a company that prioritises a steady and regular stream of passive income to its investors. It pays out a fully franked dividend every single month, which is a rarity in itself on the ASX.

It achieves this by also holding a portfolio of underlying investments. This is typically populated by dividend heavyweights, including the big four banks, Telstra, and other generous passive income providers.

The Plato share price has risen conspicuously in 2025, reducing the dividend yield available to new buyers. Even so, you can still get Plato shares today with a fully franked dividend yield of just under 5%.

Motley Fool contributor Sebastian Bowen has positions in Plato Income Maximiser, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Telstra Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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