My top ASX passive income stocks for the next 10 years

These four businesses give me several different sources of income rather than depending too heavily on one part of the economy.

I think passive income is most valuable when you can see it continuing well into the future.

That means looking beyond the dividend available today and thinking about what could support those payments over the next decade.

With that said, these four ASX passive income stocks would be high on my list.

Elderly couple cosily walking together outside.

Image source: Getty Images

Commonwealth Bank of Australia (ASX: CBA)

CBA would be my first choice among the major banks.

Its dividend is supported by one of Australia's strongest banking franchises, with millions of customers using the company for home loans, deposits, business banking, credit cards, and other financial services.

I particularly like CBA's technology and customer relationships. Its digital capabilities make it easier to keep customers within the bank and offer them additional products over time.

Australian banking will always be competitive, and I would watch CBA's premium valuation closely.

But if I were choosing a bank to provide income for the next decade, its combination of earnings strength and fully franked dividends would put it near the top of my list.

Aurizon Holdings Ltd (ASX: AZJ)

Aurizon gives income investors exposure to a completely different part of the economy.

The company operates rail freight services and owns rail infrastructure used to move commodities across Australia.

I like the infrastructure side of the business because these assets are difficult and expensive to replicate. Aurizon's Network operation also earns revenue from customers using its rail infrastructure rather than relying entirely on the profitability of individual commodity producers.

There will still be fluctuations in freight volumes and commodity markets.

Even so, I think the essential nature of its transport infrastructure can support substantial cash generation and shareholder distributions over the long term.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT would add property income to the mix.

The real estate investment trust owns properties centred around everyday spending, including supermarkets, neighbourhood retail centres, and other assets that consumers regularly visit.

I think that focus makes sense for an income investment.

People may delay large discretionary purchases when household budgets become tight, but groceries and other everyday needs remain part of regular spending.

As rents increase and the portfolio develops over time, there is also potential for the underlying income generated by these properties to grow.

Interest rates and property valuations can create volatility, so I would keep an eye on debt levels and funding costs.

But for a decade-long income portfolio, I like the type of property exposure the HomeCo Daily Needs REIT provides.

Transurban Group (ASX: TCL)

Transurban would round out my four picks.

The company operates major toll roads in Australia and North America, including CityLink in Melbourne, Cross City Tunnel in Sydney, and AirportLinkM7 in Brisbane.

Traffic volumes can grow as populations increase and cities become busier, while contractual toll increases provide another way for revenue to rise over time.

That creates the potential for dividends to increase as the underlying cash flows expand.

Transurban carries substantial debt and requires plenty of capital, so it is not a risk-free income investment. But its roads are long-life assets that millions of motorists rely on.

Foolish takeaway

If I were building passive income for the next 10 years, I would want more than a collection of today's highest-yielding shares.

CBA, Aurizon, HomeCo Daily Needs REIT, and Transurban give me income supported by banking, freight infrastructure, everyday retail property, and toll roads.

I think that gives the portfolio several sources of cash flow while still leaving room for those payments to grow over time.

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Transurban Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. 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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