2 ASX dividend stocks that could pay you a passive income for years

Not all dividend-paying stocks are equal. Some offer a far more reliable payout than others.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX dividend stocks are companies that pay shareholders a regular cash dividend.

From banks to telcos, infrastructure and even mining, there are lots of different types of dividend stocks depending on your risk appetite.

But if you want to find an ASX dividend stock that will pay a reliable passive income for years to come, you'd need to look at established and stable companies.

Here are two that fit the bill.

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.

Image source: Getty Images

APA Group (ASX: APA)

APA is one of the most stable dividend shares listed on the ASX. The energy infrastructure business is well-known for paying strong, consistent dividends, with revenue derived from long-term contracted infrastructure assets. 

APA has paid two partially franked or unfranked dividends a year, in March and September, since 2016. The company has a history of paying dividends since 2008.

Not only has APA paid reliable dividends for a long period of time, but it has also hiked its payout every year for the past 20 years. 

Its yield is usually much higher than that of other ASX dividend stocks, too, which makes it an appealing option for investors who want a passive income for years to come.

The company paid an interim dividend of 27.5 cents in the first half of FY26 and is guiding a full-year dividend of 58 cents per security. That translates to a forward distribution yield of 5.8%, partially franked, at the time of writing.

Telstra Group Ltd (ASX: TLS)

The great thing about telecommunications provider Telstra is that it is a classic defensive asset. That means that regardless of how high inflation or the cost of living gets, or how severe global uncertainty becomes, the company's offerings will remain a high priority for Australians. 

This type of stock is also perfect for investors who want to hedge against potential volatility elsewhere in their portfolio.

As a reliable and consistent ASX dividend stock, Telstra is able to offer a great passive income to investors. In fact, its dividend payout ratio is close to 100% of its earnings. 

Telstra has paid investors two dividends per year, in March and September, since 2016, and sometimes with additional special dividend payments. The telco has a history of paying its shareholders dividends dating back to 2004.

Last month, investors were paid an interim dividend of 10.5 cents, 90.48% franked. Telstra has forecast to pay a 20-cent dividend for FY26.

For FY25, the company paid investors an annual dividend of 19 cents per share. At the time of writing, that translates to a dividend yield of around 3.5%.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

ATM with Australian hundred dollar notes hanging out.
Dividend Investing

How to dollar-cost average your way to passive income with ETFs

You don't need a lump sum to build a dividend income stream, just a plan and the discipline to stick…

Read more »

Woman in a hammock relaxing, symbolising passive income.
Dividend Investing

Why this ASX dividend share is a retiree's dream

I think this business could be one of the best picks for retirement.

Read more »

Australian notes and coins symbolising dividends.
Dividend Investing

How to boost your income with $50,000 of annual dividends

Aussies can create significant dividend income for themselves with ASX stocks.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Dividend Investing

3 top ASX income ideas beyond CBA and the big four banks

Let's see why these shares could be top picks for income investors looking outside the banking sector.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

3 ASX dividend shares to buy with 5%+ yields

Analysts think income investors should be buying these shares.

Read more »

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Communication Shares

Are Telstra shares a good deal at $5.32?

Telstra's growing share price is starting to lower its dividend yield...

Read more »

A businessman in a suit adds a coin to a pink piggy bank sitting on his desk next to a pile of coins and a clock, indicating the power of compound interest over time.
Dividend Investing

Spend $20,000 on ASX shares and get $5,000 in passive income

I can prove a 25% yield is possible.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

1 ASX dividend stock down 30% I'd buy right now

This business is trading at a great price with a good dividend yield…

Read more »