Looking for a source of passive income? If you are, then it could be worth considering the three ASX dividend stocks in this article.
They have all been rated as buys and are forecast to provide investors with some good dividend yields. Here's what you need to know about them:
Cedar Woods Properties Ltd (ASX: CWP)
The first ASX dividend stock that could be a good source of passive income is Cedar Woods Properties. It is one of the country's leading residential property developers, which is benefiting greatly from Australia's chronic housing shortage.
Bell Potter expects this to underpin fully franked dividends of 33 cents per share in FY 2026 and then 36 cents per share in FY 2027. Based on the current share price of $7.53, this equates to dividend yields of 4.3% and 4.8%, respectively.
The broker currently has a buy rating and $8.75 price target on its shares.
Jumbo Interactive Ltd (ASX: JIN)
Another ASX dividend stock that is being tipped as a buy is Jumbo Interactive. It is an online lottery ticket seller and lottery platform provider, which is best known for its Oz Lotteries app and Powered by Jumbo platform.
Macquarie is positive on Jumbo and believes recent weakness has created a buying opportunity for investors. Especially given the attractive dividend yields on offer with its shares.
The broker is forecasting fully franked dividends of 64 cents per share in FY 2026 and then 73 cents per share in FY 2027. Based on its current share price of $10.20, this would mean yields of 6.3% and 7.15%, respectively.
Macquarie has an outperform rating and $13.90 price target on its shares.
Sonic Healthcare Ltd (ASX: SHL)
A third ASX dividend stock that could be a buy for passive income is Sonic Healthcare. It is one of the largest pathology and diagnostic imaging providers in the world.
Bell Potter is also positive on this one. This is due to its belief that it is positioned for growth again after a tough period following the end of COVID testing.
The broker expects this to support partially franked dividends of 109 cents per share in FY 2026 and then 111 cents per share in FY 2027. Based on its current share price of $42, this represents dividend yields of 5.1% and 5.2%, respectively.
The broker has a buy rating and $33.30 price target on its shares.
