Building a portfolio of dependable ASX dividend stocks can be the foundation for lasting wealth. The right mix of income-producing shares not only delivers a steady stream of cash today but can also grow over time as companies expand and dividends rise.
If I had $50,000 to invest, here's how I might allocate it across a number of ASX dividend stocks to create a diversified portfolio designed to provide sustainable income.
Telstra Group Ltd (ASX: TLS)
Telstra remains a top choice for dividend-focused investors. Its leading position in Australia's mobile and broadband markets supports consistent cash flows. Analysts are forecasting Telstra's fully franked dividends to yield around 5% at current prices, with scope for modest annual growth as its Connected Future 30 strategy starts to deliver the goods.
Endeavour Group Ltd (ASX: EDV)
Another ASX dividend stock to look at is Endeavour Group. As the owner of Dan Murphy's, BWS, and over 350 hotels nationwide, it offers investors resilient earnings from alcohol retail and hospitality. Even in challenging economic periods, spending on its core categories tends to hold up, helping underpin a fully franked dividend yield of around 4.5% over the next few years according to analysts.
Transurban Group (ASX: TCL)
Another option for income investors to look at is Transurban. Its toll road assets deliver predictable, inflation-linked cash flows, making it one of the more defensive income stocks on the ASX. Its dividends, while unfranked, have been growing for years and are likely to continue this trend long into the future. Especially given its development pipeline. For investors wanting dependable, infrastructure-backed income, Transurban adds a layer of resilience to a portfolio.
GQG Partners Inc (ASX: GQG)
A fourth ASX dividend stock that I would consider is GQG Partners. It is a high-yield option for income seekers. The global fund manager distributes a large portion of profits to shareholders, producing one of the most attractive yields on the ASX. At present, analysts are forecasting 10%+ dividend yields in the near term.
Universal Store Holdings Ltd (ASX: UNI)
Finally, Universal Store offers a combination of income and growth. The youth-focused fashion retailer has proven its ability to grow earnings and reward shareholders with big dividends, with its dividend yield currently topping over 4% according to analysts.
Foolish takeaway
Spreading $50,000 evenly across these five ASX dividend stocks could generate an average dividend yield of around 5%, or $2,500 a year in passive income, with plenty of potential for growth as these companies grow.
