The ultimate passive income portfolio using ASX dividend stocks

Here are five stocks that analysts think could be buys for income investors.

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If you're looking to build a sustainable source of passive income from the share market, dividend-paying ASX stocks are a great place to start.

By owning a diversified portfolio of reliable income generators, investors can enjoy regular cashflow — without having to sell their holdings.

Today, I have pulled together five high-quality ASX dividend stocks that brokers think could form the foundation of a powerful income-generating portfolio.

Each offers something different, from global resources to agricultural services, liquor retailing, asset management, and essential telecommunications. Let's dive in.

Man holding fifty Australian Dollar banknotes in his hands, symbolising dividends.

Image source: Getty Images

BHP Group Ltd (ASX: BHP)

BHP is one of the world's largest diversified miners. While its profits can fluctuate with commodity prices, the company's scale, strong balance sheet, and disciplined capital management have made it a consistent dividend payer.

The team at Morgans believes this will continue. It estimates that BHP's shares will offer fully franked dividend yields of approximately 3.7% in FY 2025 and FY 2026.

Morgans has an accumulate rating and $43.70 price target on its shares.

Elders Ltd (ASX: ELD)

Another ASX dividend stock to look at for passive income is Elders. It is one of Australia's oldest agribusinesses, providing rural services like livestock trading, farm supplies, insurance, and real estate to the agricultural sector. While it is a cyclical business, Elders' deep ties to regional Australia and diversified earnings base offer stability.

Bell Potter thinks now is a good time to buy. It is forecasting dividend yields of approximately 5.5% in FY 2025 and then 6.6% in FY 2026.

Bell Potter has a buy rating and $9.10 price target on Elders' shares.

Endeavour Group Ltd (ASX: EDV)

Spun out of Woolworths in 2021, Endeavour owns the iconic Dan Murphy's and BWS retail chains, as well as a portfolio of hotels and hospitality venues. With a defensive earnings profile and exposure to consumer staples, this ASX dividend stock generates strong, recurring cash flow — the lifeblood of dividends.

Morgan Stanley thinks it would be a great pick for passive income investors. It is forecasting fully franked dividend yields of approximately 4.6% in FY 2026 and then 5.1% in FY 2027.

The broker has an overweight rating and $5.30 price target on Endeavour's shares.

GQG Partners Inc (ASX: GQG)

This global asset manager pays out a large proportion of earnings in dividends — typically on a quarterly basis — and offers exposure to a scalable, capital-light business model. Its founder-led approach and strong investment performance have attracted attention, and the yield on offer has been consistently generous.

Macquarie expects this to remain the case for the foreseeable future and is forecasting dividend yields of approximately 10% in FY 2025 and then 11% in FY 2026.

The broker has an outperform rating and $2.80 price target on its shares.

Telstra Group Ltd (ASX: TLS)

No passive income portfolio feels complete without Telstra. As Australia's largest telecommunications company, this ASX dividend stock offers exposure to a service that millions of people and businesses rely on daily. After a long period of transformation, Telstra is now seeing the benefits of its T25 strategy and looks set for a prosperous period thanks to its new Connected Future 30 strategy.

Macquarie expects this to be the case. It is forecasting fully franked dividend yields of approximately 4.1% in FY 2025 and then 4.5% in FY 2026.

The broker has an outperform rating and $5.28 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Endeavour Group and Gqg Partners. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended BHP Group, Elders, and Gqg Partners. 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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