For investors seeking reliable passive income, one winning strategy is buying high-quality ASX dividend shares.
With inflation cooling and interest rate cuts potentially on the horizon, dividend-paying stocks could be poised to shine once again — particularly those with solid balance sheets and resilient earnings.
If you're looking to build a stream of income you can count on, here are three ASX dividend shares that analysts think could be worth adding to your portfolio today.
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Coles Group Ltd (ASX: COL)
Coles has long been considered a cornerstone of defensive investing in Australia. As one of the nation's largest supermarket operators, this ASX dividend share generates steady cash flow regardless of the broader economic climate. People need to eat, and grocery demand tends to remain strong even when times are tough.
That dependable revenue base supports regular dividends. For example, UBS believes the company is positioned to pay fully franked dividends per share of 72 cents in FY 2025 and then 83 cents in FY 2026. Based on its current share price of $20.30, this would mean 3.5% and 4.1% dividend yields, respectively.
UBS has a buy rating and $23.50 price target on its shares.
HomeCo Daily Needs REIT (ASX: HDN)
The HomeCo Daily Needs REIT could be an ASX dividend share to buy according to analysts. This real estate investment trust (REIT) focuses on convenience-based retail centres — think supermarkets, pharmacies, medical clinics, and pet stores. These are assets with stable tenants and long leases.
With a portfolio designed to weather economic cycles, this property company has rewarded its shareholders handsomely with big dividends in the past.
The good news is that Morgans expects this to continue. It is forecasting dividends of 8.6 cents per share in FY 2025 and then 8.8 cents per share in FY 2026. Based on its current share price of $1.24, this would mean dividend yields of 6.9% and 7.1%, respectively.
Morgans has an accumulate rating and $1.33 price target on its shares.
Telstra Group Ltd (ASX: TLS)
Finally, Australia's largest telecommunications provider could be an ASX dividend share to buy for passive income.
Following a multi-year transformation program, it has now returned to sustainable earnings and dividend growth.
The team at Macquarie expects this to underpin fully franked dividends of 19.9 cents per share in FY 2025 and then 22 cents per share in FY 2026. Based on its current share price of $4.87, this would mean dividend yields of 4.1% and 4.5%, respectively.
Macquarie has an outperform rating and $5.28 price target on Telstra's shares.
