If your goal is to build a dependable passive income stream that lasts for decades, you don't necessarily need a long list of stocks.
What you need are companies with strong competitive positions and the ability to keep growing their dividends through good times and bad.
If I were putting $20,000 to work today with the aim of generating income for life, I would consider the three ASX shares listed below that analysts rate as buys. Here's why they could form the backbone of my income-focused portfolio.
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Accent Group Ltd (ASX: AX1)
Accent Group has quietly developed into one of Australia and New Zealand's most powerful retail operators. With over 800 stores and leading brands including Platypus, Hype DC, and The Athlete's Foot, Accent controls a significant share of the footwear and athleisure market.
What makes it compelling for income investors is its blend of strong cashflows, disciplined capital management, and consistent dividend payments. The company has a long history of distributing the bulk of its earnings to shareholders while still reinvesting enough to expand its store network and digital presence. As the sportswear and athleisure trend continues, Accent has room for sustained revenue growth and dividend growth.
Speaking of which, Bell Potter is forecasting fully franked dividend yields of 6.6% in FY 2026 and then 7.8% in FY 2027.
It has a buy rating and $1.80 price target on its shares.
Amcor (ASX: AMC)
Amcor is one of the world's largest packaging companies, supplying food, beverage, healthcare, and household goods manufacturers across the globe. This industry structure gives Amcor two valuable traits for income investors: stability and necessity. No matter the economic climate, producers still need packaging, and that underpins Amcor's steady earnings profile.
In addition, the transformational acquisition of plastic packaging products manufacturer Berry Global has strengthened its business and positioned it for growth in the coming years.
So much so, Morgans is expecting the company to provide dividend yields of over 6% for at least the next two years.
Morgans recently upgraded its shares to a buy rating with a $15.20 price target.
Woolworths Group Ltd (ASX: WOW)
Woolworths is a cornerstone of many Australian income portfolios, and for good reason. As the country's leading supermarket operator, it benefits from one of the most defensive business models imaginable. People buy groceries in every economic cycle, which means Woolworths consistently generates strong cashflows to support dividends.
The team at Bell Potter expects this to underpin dividend yields of 3.3% in FY 2026 and then 3.6% in FY 2027.
Its analysts have a buy rating and $30.70 price target on Woolworths' shares.
