Dividend investors looking for passive income on the ASX have some tough choices to make if they wish to pick up more shares on today's market. Many of the ASX's top-tier dividend payers are looking mighty expensive compared to where they were just one or two years ago.
That obviously includes Commonwealth Bank of Australia (ASX: CBA), but also other blue chips like Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES) and Westpac Banking Corp (ASX: WBC).
At first glance, we can throw Coles Group Ltd (ASX: COL) into that mix. Coles has also had a year to remember. This time in 2024, the supermarket and liquor-chain operator was trading at around $17.50 a share. Today, those same shares are more than 26% higher at $22.08 (at the time of writing, anyway).
On one level, it's not hard to see why investors have been flooding into this consumer staples stock. Coles has been going from strength to strength lately, delivering impressive numbers to its shareholders, mostly at the expense of its arch-rival Woolworths Group Ltd (ASX: WOW).
This company's nature as a defensive passive income payer and inflation and recession-resistant investment is probably not hurting either.
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A passive income heavyweight down 8%
But even so, Coles is significantly cheaper than it was just a few weeks ago. Back in early September, Coles shares hit a new record high of $24.28 each. Today, the company is more than 8% down from that record at current pricing.
This has made Coles a lot more attractive from a passive income standpoint. This dividend payer has built up an impressive track record when it comes to passive income. Since listing in its own right back in 2018 after being spun out of Wesfarmers, Coles has managed to increase its annual (and fully franked) dividend every single year.
Back when Coles was sitting at $24.28, the 69 cents per share in dividends the company has paid out in 2025 gave it a trailing dividend yield of 2.84%.
Today, at the lower price, that yield now sits at a more attractive 3.12%.
There is no guarantee that Coles, nor any other ASX share for that matter, will continue its current dividend trajectory. But its track record stands, regardless. As such, passive income seekers might want to take another look at this ASX 200 blue chip stock today if they are looking for an income boost from the stock market.
