Dividends remain one of the most attractive features of investing in ASX shares.
For long-term investors, reliable payouts can mean consistent income and the potential for compounding wealth when reinvested.
Some ASX shares stand out for their ability to generate cash and distribute it to shareholders year after year and could be great long term picks for an income portfolio.
Two such ASX shares that analysts rate highly are named below. Here's what you need to know about these shares:
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APA Group (ASX: APA)
The first ASX share that could be a dividend star is APA Group. It owns and operates one of Australia's largest portfolios of energy infrastructure, including gas transmission pipelines. With revenues supported by long-term contracts, APA enjoys predictable cash flows and the ability to pass on inflation-linked increases.
As Australia transitions to a cleaner energy future, APA's assets will remain critical to ensuring supply security.
Macquarie thinks it would be a great pick for income investors. It has an outperform rating and $9.23 price target on its shares.
In respect to dividends, the broker is forecasting payouts of 58 cents per share in FY 2026 and then 59 cents per share in FY 2027. Based on its current share price of $8.96, this would mean very generous dividend yields of 6.5% and 6.6%, respectively, over the next two financial years.
Coles Group Ltd (ASX: COL)
Another ASX share that could be destined to be a dividend star of the next decade is Coles. It has been part of Australia's grocery duopoly for decades, and that dominant position provides it with dependable earnings. Shoppers may adjust their spending habits in tough times, but grocery demand is always there, giving Coles a highly defensive business model.
In addition, the company's ongoing investments in supply chain automation and online operations should also help drive efficiencies and protect margins. This positions Coles to keep growing its dividends while still investing in future growth.
Analysts at Macquarie are also positive on the company and have an outperform rating and $25.40 price target on its shares.
As for income, the broker is forecasting fully franked dividends of 77 cents per share in FY 2026 and then 84 cents per share in FY 2027. Based on its current share price of $23.88, this would mean attractive dividend yields of 3.2% and 3.5%, respectively, for income investors.
