3 fantastic ASX dividend shares to buy for passive income

Analysts think these shares are in the buy zone for income investors.

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Key points

  • One leading supermarket chain offers reliable dividends, with analysts predicting growing yields backed by consistent earnings from essential shopping.
  • Another dividend share provides stable income from inflation-linked toll road revenues, making it a resilient choice amidst market fluctuations.
  • A third option benefits from diversified farmland holdings and long-term leases, delivering consistent and attractive yields to investors in the agricultural sector.

Dividends remain one of the most reliable ways for investors to generate passive income from the share market.

While growth stocks often dominate headlines, a portfolio anchored by quality income shares can provide consistency and stability over the long run.

With that in mind, here are three fantastic ASX dividend shares that analysts think could be worth considering for passive income.

Coles Group Ltd (ASX: COL)

Coles is of course one of Australia's leading supermarket chains. With food and grocery shopping being non-discretionary, Coles has a dependable earnings base that supports regular shareholder returns, making it a natural pick for income-focused investors.

Morgan Stanley thinks that now would be a good time to invest. It believes the supermarket giant is positioned to pay fully franked dividends of 83 cents per share in FY 2026 and then 90 cents per share in FY 2027. Based on its current share price of $23.12, this equates to dividend yields of 3.6% and 3.9%, respectively.

The broker currently has an overweight rating and $26.80 price target on its shares.

Transurban Group (ASX: TCL)

Another ASX dividend share that is highly rated is Transurban. It is the toll road operator that owns and manages major urban networks across Sydney, Melbourne, Brisbane, and North America.

Its business model is built around long-term, inflation-linked pricing that generate predictable cash flows regardless of broader market swings. Because of this stability, Transurban has a long history of paying dividends and steadily increasing them over time. For income seekers, its defensive nature and consistent distribution profile make it a standout option in the infrastructure space.

Citi expects Transurban to pay dividends per share of 69.9 cents in FY 2026 and then 74.1 cents in FY 2027. Based on its current share price of $14.01, this would mean dividend yields of 5% and 5.3%, respectively.

The broker has a buy rating and $16.10 price target on its shares.

Rural Funds Group (ASX: RFF)

Finally, Rural Funds Group is a real estate investment trust (REIT) specialising in agricultural assets. It owns a diversified portfolio of farmland leased to high-quality operators across crops, livestock, and horticulture.

The ASX dividend share benefits from long-term leases that provide reliable rental income, often with inflation-linked escalations. This makes its distributions resilient while also offering investors exposure to the long-term demand story for food and agriculture.

Bell Potter expects this to underpin dividends per share of 11.7 cents in both FY 2026 and FY 2027. Based on its current share price of $1.93, this equates to dividend yields of 6.1%.

The broker has a buy rating and $2.45 price target on Rural Funds' shares.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Coles Group and Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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