Generating reliable passive income from the share market doesn't require chasing risky high-yield shares.
In fact, some of the best income opportunities come from boring companies with strong balance sheets, steady cash flows, and a track record of rewarding shareholders through regular dividends.
If you're looking to grow your income stream in 2026 and beyond, here are three strong ASX dividend shares that analysts think are worth considering.
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APA Group (ASX: APA)
For investors seeking steady, inflation-linked income, APA Group continues to stand out.
This energy infrastructure giant owns and operates thousands of kilometres of gas pipelines across Australia that help power homes and industries. These pipelines are often backed by long-term, regulated contracts, which give APA a high level of earnings visibility and make its dividends more dependable than most.
APA has been consistently paying out distributions for over two decades and currently offers an above-average dividend yield. And it looks well-placed to continue this trend as it invests further into renewable and electricity transmission assets, positioning itself to benefit from the nation's long-term energy transition.
Macquarie is forecasting dividends per share of 58 cents in FY 2026 and 59 cents in FY 2027. Based on its current share price, this would mean dividend yields of 6.3% and 6.4%, respectively.
The broker has an outperform rating and $9.23 price target on its shares.
Coles Group Ltd (ASX: COL)
Coles may not be an exciting ASX dividend share, but for investors seeking consistency, it is hard to beat.
The supermarket leader has one of the most defensive business models on the ASX. Australians need groceries no matter what the economy is doing, and that means Coles' revenue base remains remarkably stable even in downturns.
This reliability translates into solid dividends, which are fully franked and have been growing at a solid rate in recent years.
Macquarie expects this to continue and is forecasting fully franked dividends per share of 83 cents in FY 2026 and then 90 cents in FY 2027. Based on its current share price, this equates to dividend yields of 3.6% and 3.9%, respectively.
The broker currently has an outperform rating and $25.40 price target on its shares.
Telstra Group Ltd (ASX: TLS)
Telstra has been quietly reinventing itself and passive income investors are reaping the rewards.
After years of restructuring, the telco giant has streamlined its operations, strengthened its balance sheet, and refocused on profitable growth areas such as 5G and enterprise services. As a result, its cash flow generation has improved dramatically, giving management room to lift dividends.
Macquarie expects this to lead to the company paying fully franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price, this would mean dividend yields of 4% and 4.2%, respectively.
The broker has an outperform rating and $5.04 price target on its shares.
