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Tristan Harrison has a decade of experience as an ASX share investment writer and was previously a business, tax and audit accountant for seven years. Tristan has contributed to The Motley Fool since October 2016. He has an advanced diploma from the Association of Accounting Technicians and is currently enrolled in the Chartered Institute of Management Accountants (CIMA) program. Tristan's goal is to help Australians learn about great ASX shares that can help grow their portfolio, wealth and dividends over the long-term.
Areas of Expertise
ASX dividend shares and passive income strategies
ASX growth shares and ETFs
Business and company financial analysis
Franking credits and personal tax topics
Personal finance
Education
Advanced diploma from the Association of Accounting Technicians
Enrolled in the Chartered Institute of Management Accountants (CIMA) program
"Live within your income and save so that you can invest."
— Charlie Munger
Published
I believe ASX dividend shares are some of the most attractive elements of the Australian stock market because they can provide attractive passive income.
Investing is all about making money, so it's nice to own assets that regularly reward shareholders with cash payments to the bank account. Capital gains are great on paper, but until we sell, there's no benefit to the bank account.
That's why I like to invest in a mix of ASX dividend shares for passive income and choose other investments where I expect capital growth to make up most of the return.
With the dividend income I receive in my own name, I like to use some of it to pay for expenses for our household, such as discretionary spending.
Income investors can benefit from Australian companies that attach franking credits to their dividends, boosting the grossed-up dividend income on offer for shareholders.
With the stocks I'm picking for passive income, I'm not purely looking at the dividend yield. I'm expecting solid total returns over the long term and for the asset to provide something compelling for my investment exposure.
I'm also looking for dividend stability. I don't want my dividend income to disappear when I need it most. Dividends aren't guaranteed, of course, but I'm more confident in the ASX dividend shares providing reliable dividends than I would be from the Vanguard Australian Shares Index ETF (ASX: VAS).
Some of my ASX dividend share investments have dividend yields of at least 7%, which is helpful for achieving strong levels of cash flow compared to the size of the investment.
With the five ideas (and holdings) below, I'm optimistic the dividends will continue to be reliable in the coming years. Let's get into it.
Image source: Getty Images
JPZ Tybony Tebjgu Ygq(NFK: JDT)
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Nf erthyne ernqref jvyy xabj, V ybir gur yvfgrq vairfgzrag pbzcnal (YVP) fgehpgher. Gur wbo bs n YVP vf gb vairfg va bgure funerf (be nffrgf). V yvxr gb hfr YVPf nf n jnl gb vairfg va nernf bs gur tybony fgbpx znexrg (be NFK funer znexrg) gung V qba'g nyernql qverpgyl vairfg va.
YVPf ner rssrpgvir ng vairfgvat va bgure bccbeghavgvrf naq gheavat vairfgzrag cebsvgf vagb fgnoyr (be tebjvat) qvivqraqf.
Znal bs gur zbfg cbchyne rkpunatr-genqrq shaqf (RGSf) ner rssrpgvir vairfgzragf, ohg gurl abj frrz bireyl sbphfrq ba whfg 10 be 20 anzrf jvgu ynetr jrvtugvatf. YVPf pna cebivqr qvssreragvngrq qvirefvsvpngvba.
JPZ Tybony Tebjgu yvxrf gb bja n cbegsbyvb bs 20 gb 40 tybony fgbpxf gung unir na vzcebivat rpbabzvp zbng, n evfvat erghea ba vairfgrq pncvgny (EBVP), naq n pbecbengr phygher gung sbfgref na vzcebivat rpbabzvp zbng.
Va grezf bs gur qvivqraq, gur ohfvarff cnlf n dhnegreyl qvivqraq naq vf vapernfvat vgf cnlbhg rirel guerr zbaguf, juvpu nccrnyf gb zr. Gur NFK qvivqraq funer unf thvqrq gung vg jvyy cnl 10.1 pragf cre funer bire gur arkg 12 zbaguf, juvpu genafyngrf vagb n tebffrq-hc qvivqraq lvryq bs 7.75%, vapyhqvat senaxvat perqvgf. Vg unf vapernfrq vgf naahny cnlbhg rnpu lrne fvapr 2019.
Gur ohfvarff ybbxf yvxr tbbq inyhr gb zr orpnhfr vg'f genqvat ng n fznyy qvfpbhag gb vgf jrrxyl arg gnatvoyr nffrgf (AGN) cre funer bs $1.93 nf ng 23 Bpgbore 2026, ng gur gvzr bs jevgvat.
Shgher Trarengvba Tybony Ygq (NFK: STT)
Nabgure fgbpx V oryvrir vf n fbyvq pubvpr sbe qvivqraq vapbzr vf Shgher Trarengvba Tybony, na YVP jvgu n aboyr pnhfr.
Gur svany NFK qvivqraq funer V jnag gb uvtuyvtug vf nyfb na YVP gung sbphfrf ba fznyy NFK funerf.
Fznyy-pnc funerf pna or fbzr bs gur orfg vairfgzragf, tvira ubj zhpu rneyvre gurl ner va gurve tebjgu. Cyhf, gur inyhngvbaf pna or irel nccrnyvat orpnhfr abg znal nanylfgf be vairfgbef sbyybj gurfr fgbpxf, fb gur cevpr-rneavatf (C/R) engvbf pna or n ybg ybjre guna gurl bgurejvfr fubhyq or.
Gur uvtu vagrerfg engr vf n punyyratvat raivebazrag sbe fznyy pncf, fb guvf pbhyq or gur evtug gvzr gb vairfg jura znexrg pbasvqrapr vf ybjre ng gung raq bs gur znexrg.
