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

A man thinks very carefully about his money and investments.
Bank Shares

Buying Macquarie shares? Here's the dividend yield you'll get today

Macquarie isn't your ordinary ASX bank stock.

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Dividend Investing

If I invest $5,000 in CBA shares today, what passive income would I get in FY27?

Here's your potential income based on the latest dividend forecasts.

Read more »

5 mini houses on a pile of coins.
REITs

Is Goodman Group a buy for dividend income today?

Goodman is a rather unique REIT.

Read more »

A man has a surprised and relieved expression on his face.
Dividend Investing

Buy this ASX income stock for 18% upside and 8% dividend yield

Bell Potter is tipping this stock as a buy this week.

Read more »

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

Forget CBA and buy these ASX dividend shares

These shares offer better forecast yields than Australia's largest bank.

Read more »

Australian notes and coins symbolising dividends.
Dividend Investing

I'd buy 37,540 shares of this ASX stock to aim for $300 a month of passive income

This is a compelling time to buy into this high-performing ASX share.

Read more »

A bemused woman tries to choose between two slices of cake she holds on two plates.
Dividend Investing

Which is better: A 4% dividend yield or a 5% term deposit?

Some yields are more equal than others...

Read more »

Man holding fifty Australian Dollar banknotes in his hands, symbolising dividends.
Dividend Investing

3 ASX dividend shares yielding 9% (or even more)

I think these ASX dividend shares belong in every investors' portfolio.

Read more »