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.

| 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

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.

A man raises his reading glasses in a look of surprise.

Image source: Getty Images

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.

More on Dividend Investing

Increasing white bar graph with a rising arrow on an orange background.
Dividend Investing

$1,000 buys 518 shares in an incredibly reliable ASX dividend stock

This business has a lot to offer income-focused investors.

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Exchange-Traded Funds (ETFs)

VIHY: Is Vanguard's new ASX dividend ETF a buy for income?

This latest offering from Vanguard is an interesting one.

Read more »

A woman looks quizzical while looking at a dollar sign in the air.
Dividend Investing

Forget CBA shares! I'd rather buy these ASX dividend shares

These businesses offer significant passive income for investors.

Read more »

Happy young couple saving money in piggy bank.
Dividend Investing

3 strong ASX passive income shares I'd buy now

These shares could be worth considering if your goal is an income boost.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes, symbolising dividends.
Dividend Investing

Which ASX 200 sectors paid the highest dividend yields in FY26?

Experts say capital gains tax changes may prompt investors to focus on yield. So, which sectors pay best?

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

How to build $60,000 in annual passive income from ASX dividend shares

Building $60,000 in annual passive income from ASX dividend shares is achievable.

Read more »

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

2 ASX shares with dividend yields above 7.5%

These stocks offer investors a significant level of passive income.

Read more »

A woman looks excited as she fans out a wad of Aussie $100 notes.
Dividend Investing

These ASX shares could generate $10,000 per year in passive income

And here's exactly how much you'd need to invest.

Read more »