For Australians planning their retirement, reliable income is key. With life expectancies rising and the cost of living following suit, building a passive income stream that can endure for decades has never been more important.
That's where quality ASX dividend stocks come in. The right businesses can deliver dependable income through thick and thin – even in uncertain economic conditions.
If you're looking to build a retirement portfolio with income at its core, here are three ASX dividend stocks that analysts think could serve you well for the long haul.
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Coles Group Ltd (ASX: COL)
Coles is one of the most dependable companies on the ASX. As one of Australia's leading supermarket operators, Coles generates stable cash flow by selling everyday essentials to millions of households.
Regardless of economic cycles, people need to eat – and Coles is well-positioned to benefit from that unchanging demand. It boasts a national footprint, a growing online presence, and steady productivity improvements to support margins.
Macquarie is positive on the company and has an outperform rating and $23.10 price target on its shares.
As for income, the broker is forecasting fully franked dividend yields of approximately 3.2% in FY 2025 and then 3.7% in FY 2026.
Telstra Group Ltd (ASX: TLS)
Australia's largest telecommunications company is another retirement-friendly ASX dividend stock to consider.
Telstra has completed a multi-year turnaround, simplified its operations, and is now well-placed to deliver steady growth in earnings and dividends. Its critical infrastructure and dominant market position in mobile and broadband make it a defensive play in most environments.
The company recently reaffirmed its commitment to growing dividends over time, supported by its new Connected Future 30 strategy.
This went down well with analysts at Macquarie. It recently put an outperform rating and $5.28 price target on its shares.
The broker also expects a growing stream of dividends in the coming years. It is forecasting fully franked dividend yields of 4.1% in FY 2025 and then 4.5% in FY 2026.
Transurban Group (ASX: TCL)
Finally, if you're seeking long-term, inflation-protected income, Transurban is an ASX dividend stock worth a closer look.
The toll road operator has stakes in critical transport infrastructure in Sydney, Melbourne, Brisbane, and North America. Its business model is underpinned by long-dated concessions and regular price increases – many of which are indexed to inflation.
This gives Transurban a highly predictable revenue stream and makes it a strong candidate for delivering rising distributions over time.
UBS is a fan and has a buy rating and $14.85 price target on its shares. As for dividends, it is forecasting yields of 4.7% in FY 2025 and then 5% in FY 2026.
