For investors who value steady income and dependable returns, ASX dividend stocks remain hard to beat.
The right stocks can provide growing income year after year while their underlying businesses continue to deliver long-term capital growth.
The trick is finding those rare dividend champions. These are companies with reliable cash flows, dominant market positions, and management teams committed to rewarding shareholders.
Two that stand out on the ASX today according to analysts are listed below. Here's why they could be top picks for income investors:
Coles Group Ltd (ASX: COL)
The first ASX dividend stock to look at is Coles. It is of course one of Australia's big-two supermarket giants, serving millions of customers every week. Its national footprint, trusted brand, and focus on everyday essentials make it one of the most defensive businesses on the ASX.
No matter the economic climate, people still need groceries. You only need to look at the COVID pandemic to see this. That steady demand translates into stable revenue, consistent profits, and a dependable stream of dividends.
It is also currently undergoing significant efficiency improvements by leveraging automation. Combined with actions to address store theft, this is expected to boost its margins in the coming years.
Morgan Stanley is bullish on Coles and has an overweight rating and $26.80 price target on its shares. As for income, it is forecasting 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 $23.13, this equates to dividend yields of 3.6% and 3.9%, respectively.
Transurban Group (ASX: TCL)
Another ASX dividend stock that could be a top long term buy is Transurban.
It is another name that is synonymous with consistency. As Australia's largest toll road operator, the company owns and manages a portfolio of urban motorways across Sydney, Melbourne, Brisbane, and North America. These are assets that generate predictable, inflation-linked cash flow.
Its business model is simple yet powerful. People continue to drive, and in most cases, have little alternative to Transurban's routes. Especially as populations grow and roads get busier.
While infrastructure projects require significant investment upfront, the pay-off comes through decades of dependable income. For dividend investors, Transurban offers the rare combination of stability, inflation protection, and growth potential — making it an ideal long-term holding.
Citi is positive on Transurban's outlook. As a result, the broker recently put a buy rating and $16.10 price target on its shares.
As for those all-important dividends, Citi is forecasting payouts of 69.5 cents per share in FY 2026 and then 73.7 cents per share in FY 2027. Based on its current share price of $14.45, this would mean dividend yields of 4.8% and 5.1%, respectively.
