With interest rates expected to ease in the coming year, many investors are turning their attention back to dividend-paying stocks for steady, long-term passive income.
While some of the traditional high-yield favourites have become expensive, there are still quality shares offering potential for growing passive income.
For example, here are two ASX dividend stocks that could be excellent buys for income-focused investors heading into 2026.
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Endeavour Group Ltd (ASX: EDV)
The first ASX dividend stock to consider is Endeavour Group. It owns some of Australia's most recognisable retail and hospitality brands, including Dan Murphy's, BWS, and a network of more than 350 pubs and hotels nationwide.
This mix of bottle shops and venues gives Endeavour exposure to stable, recurring cash flows, even when consumer spending softens elsewhere.
The company's dividend track record has been solid since its spin-off from Woolworths Group Ltd (ASX: WOW), with management rewarding shareholders with attractive payouts.
Bell Potter expects this to continue and is forecasting fully franked dividends of 19 cents per share in FY 2026 and then 20 cents per share in FY 2027. Based on its current share price of $3.66, this would mean dividend yields of 5.2% and 5.5%, respectively.
Bell Potter has a buy rating and $4.30 price target on the company's shares. Its analysts stated that they "expect strong 2Q26e Retail sales growth to be underpinned by recent rate cuts, a softer comp following 2Q25 supply chain disruptions, and the growth observed in October."
Universal Store Holdings Ltd (ASX: UNI)
Another ASX dividend stock that could be a top buy for passive income in 2026 is Universal Store.
This fast-growing youth fashion retailer has quietly become one of the ASX's most consistent small-cap performers. It operates over 80 stores across Australia under the Universal Store and Perfect Stranger brands, targeting younger shoppers with its mix of lifestyle fashion and exclusive labels.
Despite the challenging retail environment, the company continues to post strong sales growth and strong margins, reflecting the strength of its niche and loyal customer base. In fact, last week it impressed analysts at Macquarie Group Ltd (ASX: MQG) by reporting a 13.7% increase in group sales for the first quarter of FY 2026.
The broker believes this leaves it positioned to pay fully franked dividends of 43 cents per share in FY 2026 and then 51.5 cents per share in FY 2027. Based on its current share price of $8.86, this would mean dividend yields of 4.9% and 5.8%, respectively.
Macquarie has an outperform rating and $10.20 price target on its shares. It said: "Stock appears attractively priced, given strong sales growth & GM expansion."
