For investors chasing passive income, the Australian share market is a great place to start.
It is home to a large number of quality dividend-paying ASX stocks that could provide reliable income over the long term.
But which ones could be buys right now? Let's take a look at three that analysts are bullish on:
Telstra Group Ltd (ASX: TLS)
As Australia's leading telecommunications provider, Telstra benefits from highly predictable mobile and broadband revenue streams. This could make it a great ASX dividend stock to buy for the long term.
Especially given the company's new Connected Future 30 strategy, which is targeting steady earnings growth through 5G and network upgrades. And while it will never be a rapid growth story, it is a defensive play with reliable cash flow for dividend investors.
As for income, Macquarie estimates that Telstra currently offers a fully franked dividend yield of around 4%, providing an income stream that is competitive with term deposits and bonds.
Macquarie currently has an outperform rating and $5.19 price target on its shares.
Super Retail Group Ltd (ASX: SUL)
Another ASX dividend stock that could be a buy is Super Retail. It is the owner of popular retail chains Supercheap Auto, Rebel, BCF, and Macpac.
While retail can be cyclical, Super Retail has demonstrated its ability to generate strong cash flows and reward shareholders with fully franked dividends through the cycle.
The company continues to benefit from loyal customers, well-known brands, and disciplined cost management. With a healthy balance sheet and solid operating performance, Super Retail Group appears positioned to sustain attractive yields, even in a softer consumer environment.
Citi is positive on the company and is forecasting fully franked dividends of $1.15 per share in FY 2025 and then $1.20 per share in FY 2026. This equates to dividend yields of 7.6% and 7.8%, respectively.
The broker has a buy rating and $16.50 price target on its shares.
Rural Funds Group (ASX: RFF)
Finally, Rural Funds Group could be worth a look for income investors. This ASX dividend stock is a specialist agricultural REIT that owns a diversified portfolio of high-quality farmland and agricultural assets, including almond orchards, cattle properties, and vineyards.
The company generates stable rental income from long-term leases with blue-chip tenants in the agriculture sector. Its distributions are underpinned by contracted cash flows, often with increases built in.
Bell Potter is a fan of Rural Funds and thinks its shares are cheap at current levels. It also expects some great dividend yields from its shares. It is forecasting dividends per share of 11.7 cents in FY 2025 and then 12.2 cents in FY 2026. This equates to 6.5% and 6.8% dividend yields, respectively.
The broker has a buy rating and $2.45 price target on its shares.
