Passive income can mean different things to different investors. For me, it is about building a stream of dividends that I can rely on over time, rather than chasing the highest yield available today.
That usually leads me toward businesses with steady cash flow, resilient demand, and a track record of returning capital to shareholders.
Here are three ASX shares I would consider for passive income in April and beyond.
Image source: Getty Images
Telstra Group Ltd (ASX: TLS)
Telstra is one of the more straightforward income plays on the ASX. It operates critical telecommunications infrastructure that underpins how Australians connect, work, and consume data. That creates a large and relatively stable customer base.
What I like most is the consistency. Mobile plans, broadband services, and enterprise contracts all contribute to recurring revenue, which supports earnings visibility. That, in turn, helps underpin its dividend.
Telstra may not deliver rapid growth, but I think it offers a level of stability that suits an income-focused approach.
Transurban Group (ASX: TCL)
Transurban provides a different type of income exposure. It owns and operates toll roads, which generate revenue from everyday usage. These assets are long-dated and often linked to inflation, which can help support distribution growth over time.
What I like here is the predictability. Traffic volumes can fluctuate in the short term, but over longer periods, usage tends to grow alongside population and economic activity.
The company has also been guiding to higher distributions, which reflects confidence in its underlying cash flow.
For income investors, that kind of visibility can be valuable.
Coles Group Ltd (ASX: COL)
Lastly, Coles adds exposure to everyday consumer spending. Grocery retail is not immune to competition, but demand for food and essentials remains relatively stable.
That creates a consistent revenue base, which supports earnings and dividends.
What I find appealing is the balance. Coles may not offer the highest dividend yield on the market, but it combines income with a business that people rely on regularly.
Over time, incremental improvements in efficiency and operations can also support gradual growth in earnings.
Foolish takeaway
For me, building passive income is about combining businesses that can continue generating cash flow through different conditions.
Telstra offers stable, recurring income from essential services, Transurban provides exposure to infrastructure with long-term revenue streams, and Coles adds defensiveness through everyday consumer demand.
Together, they represent the kind of foundation I would look for when building an income-focused portfolio over time.
