Retirement income: 3 Australian dividend stocks to own for decades

Analysts think these shares could be good picks for retirees.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

A mature aged couple dance together in their kitchen while they are preparing food in a joyful scene.

Image source: Getty Images

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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Coles Group, Macquarie Group, and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Retirement

Woman with $50 notes in her hand thinking, symbolising dividends.
Retirement

Top 5 things Aussies at 55 must know about the Age Pension asset before they retire

Yes, it even includes your superannuation balance.

Read more »

A couple sit on the deck of a yacht with a beautiful mountain and lake backdrop enjoying the fruits of their long-term ASX shares and dividend income.
Retirement

Why Wesfarmers shares are a retiree's dream for FY27

This ASX stalwart can be a fundamental position for retirees.

Read more »

Next egg in bank safety deposit box
Retirement

Why your superannuation may need a bigger buffer in 2026

“Enough” may not leave much room for error.

Read more »

Woman holding $50 notes with a delighted face.
Retirement

53,794 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension

This business has a stunning reputation for passive income.

Read more »

A woman sits in her home with chin resting on her hand and looking at her laptop computer with some reflection with an assortment of books and documents on her table.
Retirement

Is the Age Pension enough to retire comfortably in Australia?

What type of retirement lifestyle do you aspire to have?

Read more »

Strong woman overlooking city.
Retirement

3 strong ASX 200 shares for retirees to buy and hold

For retirees, I would focus on income that is backed by resilient businesses, not just the highest dividend yield.

Read more »

A mature-aged couple high-five each other as they celebrate a financial win and early retirement.
Retirement

Why this ASX dividend share is a retiree's dream

This business could be a great passive income choice.

Read more »

Woman in a hammock relaxing, symbolising passive income.
Retirement

136,191 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension

This stock looks more appealing than the Age Pension.

Read more »