The ultimate passive income portfolio using ASX dividend stocks

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

| 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

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.

More on Dividend Investing

A happy girl in a yellow playsuit with a zip gives the thumbs up.
Dividend Investing

3 ASX dividend shares yielding up to 9%, and with monthly payouts

These are my top picks for investors who want a regular passive income.

Read more »

Woman holding $50 notes and smiling.
Dividend Investing

2 rock-solid ASX dividend shares to buy this May

The yields are attractive, but I also like the real assets and cash flow visibility behind the distributions.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes, symbolising dividends.
Dividend Investing

This ASX 200 dividend share could be a quiet winner for the next decade

This company owns toll road assets that millions of people use, giving it a different kind of appeal for income…

Read more »

A woman looks quizzical while looking at a dollar sign in the air.
Dividend Investing

Thinking about dividend yields? Here's how much the top 10 ASX 200 shares pay

Proposed changes to capital gains tax have made ASX dividend shares more interesting to investors.

Read more »

Man ponders a receipt as he looks at his laptop.
Dividend Investing

How big will the BHP dividend be in 2027?

Here's what investors can expect from the mining giant next year.

Read more »

Happy miner with his hand in the air.
Resources Shares

Buying Rio Tinto shares? Here's the yield you'll get today

Rio has been a goldmine for investors lately.

Read more »

A couple working on a laptop laugh as they discuss their ASX share portfolio.
Dividend Investing

Could this boring ASX 200 dividend share be a strong buy for its big yield?

Boring businesses can still be useful for income investors, especially when a share price fall pushes the forecast yield much…

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

2 buy-rated ASX dividend shares to buy for 4% to 5% yields

Let's see which shares are being recommended as buys this week.

Read more »