Interest rates have been falling this year and look set to go even lower in 2026.
In light of this, if you are looking for passive income, then ASX dividend stocks might be the place to be.
But which ones could be buys? Let's look at two that brokers are recommending to clients:
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Regal Partners Ltd (ASX: RPL)
Bell Potter thinks that Regal Partners could be an ASX dividend stock to buy for passive income.
Its analysts think the market is undervaluing the fund manager's shares at less than 12x forward earnings. It explains:
We continue to find RPL attractive, given its growth opportunity and valuation. Growth in FUM has three drivers: Inflows: RPL continues to attract inflows, averaging over 1% of opening FUM per month in 2024.
[…] The business is highly profitable generating high management fee rates and performance fees. Despite the strong historic and prospective growth, the shares trade at just 11.7x forward EPS. While the stock has recovered strongly since April, it remains well below levels seen at the start of the year (and is down 24% over the past 12 months). We expect the HY results on 25 August to underscore the group's strengths, and we maintain our BUY recommendation.
As for dividends, Bell Potter is forecasting fully franked dividends per share of 11.8 cents in FY 2025 and then 18.2 cents in FY 2026. Based on its current share price of $3.02, this would mean dividend yields of 3.9% and 6%, respectively.
The broker has a buy rating and $3.55 price target on its shares.
Treasury Wine Estates Ltd (ASX: TWE)
Another ASX dividend stock that could be a buy is Treasury Wine.
It is the wine giant behind popular brands such as Penfolds, Wolf Blass, and 19 Crimes.
Morgans thinks its shares are too cheap to ignore after recent weakness. It recently said:
TWE's FY25 result was in line with guidance, reporting a credible 17% growth in EBITS during a period of macro-economic and category headwinds. TWE is targeting further EBITS growth in FY26, led by Penfolds. We have made modest changes to our forecasts reflecting the disruption associated with a change of distributor in California.
While lacking near term share price catalysts given industry and macro headwinds and a CEO transition, trading on an FY26F PE of only 12.7x, we maintain a BUY rating. A$200m share buyback should provide some degree of share price support.
In respect to passive income, Morgans is forecasting partially franked dividends per share of 41 cents in FY 2026 and then 46 cents in FY 2027. Based on its current share price of $8.05, this would mean dividend yields of 5.1% and 5.7%, respectively.
The broker has a buy rating and $10.10 price target on its shares.
