How I'd invest $50,000 in ASX dividend stocks to never worry about money again

Let's have a look at a potential income portfolio that could deliver the goods over the long term.

| More on:
Happy young couple saving money in piggy bank.

Image source: Getty Images

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

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.

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

Man looking amazed holding $50 Australian notes, representing ASX dividends.
Dividend Investing

Analysts are urging investors to buy these ASX dividend shares

These income options come highly rated by analysts.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

Forget BHP shares! Buy these ASX dividend shares instead for passive income

I can think of a few options I’d prefer over the mining giant.

Read more »

A padlock wrapped around a wad of Australian $20 and $50 notes, indicating money locked up.
Dividend Investing

An ASX dividend stalwart every Australian should consider buying

This business offers everything an income-focused investor could want.

Read more »

Happy young woman saving money in a piggy bank.
Dividend Investing

Buy 100 shares of this premier dividend share for $150 in passive income

Here’s why this dividend stock remains a favourite for passive income.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Dividend Investing

Broker names 2 ASX dividend shares to buy before it's too late

Bell Potter is urging income investors to buy these shares.

Read more »

Two plants grow in jars filled with coins.
Dividend Investing

31%: This could be the best dividend growth stock on the ASX

Let's get into why.

Read more »

A man looking at his laptop and thinking.
Dividend Investing

1 excellent ASX dividend stock, down 60%, to buy and hold for the long term

This beaten down stock could be a top pick for income investors. Let's find out why.

Read more »

A young woman looks happily at her phone in one hand with a selection of retail shopping bags in her other hand.
Dividend Investing

These 2 ASX dividend shares are great buys right now

These stocks offer a strong level of payouts. Here’s why…

Read more »