3 ASX dividend shares to buy for growing passive income

These shares have a lot going for them. Here's why they could be good for passive income investors.

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Passive income is even better when it has room to grow.

A good dividend yield today can be attractive, but growth can make a big difference over time as earnings rise and companies return more cash to shareholders.

With that in mind, here are three ASX dividend shares that could be worth considering for the long term.

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Amcor PLC (ASX: AMC)

Amcor could be an ASX dividend share to consider for growing passive income.

The packaging giant operates across the world, producing flexible and rigid packaging for food, beverages, healthcare, personal care, and other consumer products.

That gives Amcor exposure to everyday consumption rather than one narrow product category. People may change brands, shop around, or reduce spending in tougher periods, but packaged goods remain part of daily life across households and businesses.

The company is also exposed to defensive end markets, which can help support cash flow through different economic conditions.

Dicker Data Ltd (ASX: DDR)

Another ASX dividend share to look at for the long term is Dicker Data.

It is a technology distributor that connects major global vendors with resellers, managed service providers, and business customers across Australia and New Zealand.

Its products cover areas such as hardware, software, cloud, cybersecurity, networking, and other technology infrastructure.

That puts the company in an interesting position. It is not trying to be the next software disruptor. It sits in the middle of the technology supply chain, helping businesses access the tools they need to operate, modernise, and protect their systems.

Over the past decade, Dicker Data has also built a reputation as a strong dividend payer. The good news is that this trend looks set to continue.

As companies keep investing in cloud services, security, devices, and digital infrastructure, Dicker Data is well-placed to continue generating the cash flow needed to support dividends over time.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share to consider is youth-focused fashion retailer Universal Store.

Retail can be cyclical, but Universal Store has carved out a clear position in the youth fashion market, with a strong understanding of brands, trends, store experience, and customer behaviour.

That gives it a different income profile from traditional defensive dividend shares.

When trading conditions are supportive, retailers with strong margins, disciplined inventory management, and a loyal customer base can generate attractive cash flow.

Another positive is that Universal Store has the potential to grow its earnings and dividends through new store openings, brand development, private label expansion, and better online execution.

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Amcor Plc and Dicker Data. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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