But even with term deposits offering improved returns, many ASX dividend shares still provide compelling income alongside the potential for capital growth.

For those looking to build a reliable income stream, here are three top ASX dividend shares to consider.

APA Group (ASX: APA)

The first ASX dividend share that income investors could consider is APA Group.

APA is one of Australia's leading energy infrastructure businesses, operating a vast portfolio of gas pipelines, storage assets, and energy facilities. These assets are typically underpinned by long-term contracts, which provide steady and predictable cash flows.

This reliability has allowed APA to deliver consistent distributions over many years, making it a popular choice among income-focused investors.

Looking ahead, APA's pipeline of growth projects and its exposure to Australia's evolving energy landscape could support further earnings and distribution growth. While not the fastest-growing company on the market, its defensive characteristics and dependable income profile are key attractions.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be a top pick is Rural Funds Group.

Rural Funds Group is an agricultural real estate investment trust that owns a diversified portfolio of farming assets across Australia. These include almond orchards, cattle properties, vineyards, and macadamia plantations.

The key appeal of the company is its business model. It leases its assets to experienced agricultural operators on long-term agreements, which helps provide stable and predictable rental income.

This structure can make its distributions relatively resilient, even when underlying agricultural conditions fluctuate. In addition, exposure to agricultural land offers diversification benefits and potential long-term value appreciation.

Telstra Group Ltd (ASX: TLS)

A final ASX dividend share that income investors might look at is Telstra Group Ltd.

Telstra is Australia's largest telco and plays a key role in the country's digital infrastructure. Its earnings are supported by a large and loyal customer base across mobile, broadband, and enterprise services.

The company has recently moved into its Connected Future 30 strategy, which aims to build on the success of its previous transformation program and drive further growth.

Telstra is also known for its attractive dividend yield, which has been supported by strong cash generation. Combined with its relatively defensive business model, this makes it a compelling option for investors seeking steady income.

The post 3 top ASX dividend shares for income investors to buy appeared first on The Motley Fool Australia.

Sometimes it's difficult to predict how much demand a business is going to see for its offering.

Companies like BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO) and Adairs Ltd (ASX: ADH) can see revenue bounce around.

Wouldn't it be great to know you have revenue locked in for a number of years? Normally, I'd write about Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), when it comes to long-term passive income, but there are two other businesses I really want to highlight.

Rural Funds Group (ASX: RFF)

Rural Funds has been one of my favourite real estate investment trusts (REITs) and I expect it will continue to be that way in the coming years.

Food is an exceptionally important commodity, so the farmland that Rural Funds owns is an important part of the national and global picture.

It owns various types of farmland including almonds, cattle, macadamias, vineyards and cropping, but it leases that land to agricultural tenants, ensuring the Rural Funds doesn't carry major operational risks.

What makes it an effective pick for long-term passive income? It's because it has a long weighted average lease expiry (WALE) with its tenants of approximately 13 years. In other words, the average tenancy rental agreement the ASX share has will expire in more than a decade, even if it didn't sign any other long-term leases or renewals in that time.

That's an extremely long time and suggests to me that the business has also largely locked in paying good passive distribution income in the coming years as well.

The business continues to invest in its farms to help maximise their rental income potential. But, rent is also growing organically, with most rental agreements having an indexation of either a fixed annual increase or a rise linked to inflation, plus market reviews.

Its guided FY26 payout translates into a distribution yield of 5.9%.

Charter Hall Long WALE REIT (ASX: CLW)

The other ASX share I want to highlight is this diversified REIT that owns properties across an array of commercial real state categories including pubs and hotels, telecommunication exchanges, service stations, distribution and logistics centres, manufacturing and so on.

I like the diversified strategy because it reduces risks and ensures the business can look across a wide range of areas for potential opportunities.

The one part of the strategy that all these properties have in common is that the ASX share has signed on tenants for years, providing appealing long-term income.

This ASX share has a WALE of around nine years, which is also a long time to have rental income locked in.

The business expects to grow its FY26 annual distribution by 2% to 25.5 cents per security, translating into a distribution yield of 7.6%, at the time of writing.

The post Looking for long-term passive income? Try one of these ASX shares appeared first on The Motley Fool Australia.

In order to receive a dividend, you must own the ASX share before its ex-dividend date.

Here at The Fool, our analysts do not recommend buying ASX shares simply just to get the next dividend payment.

Our market experts say the decision to buy should be more thoughtful than that, and based on fundamental analysis.

But if you already intend to buy any of these ASX shares, you might like to consider the best timing for you.

For example, you could buy before the ex-dividend date and receive entitlement to the next dividend payment.

Or you might prefer to wait until the ex-dividend date itself, when the share price usually falls, to snap up your stock.

Here are some ex-dividend dates next week

The post 20 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

Businesses that benefit from elevated inflation could outperform the wider ASX share market, as higher fuel prices (and other disruptions from the Middle East) could drive inflation higher.

Having noted that, I think the following ASX defensive shares are good buys today.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) that owns farmland across Australia.

Food is one of the most important commodities that a business could produce. But, the business is leasing its farms to high-quality tenants, removing the risk of operating agricultural land.

Rural Funds generates a pleasing level of rental income from its property portfolio, enabling it to guide a distribution for FY26 that translates into a distribution yield of 5.8% at the time of writing.

The reason why I think it can succeed during another bout of inflation is because a significant portion of its rental income is linked to inflation, which could mean an acceleration of rental growth during this period.

A key aspect why I think this is a good time to buy is that it's trading at a low price to the underlying value of its property portfolio (minus the loans and so on), with a metric called the net asset value (NAV).

At 31 December 2025, it had an adjusted NAV of $3.10, so it's trading at a 35% discount to this.

I love being able to buy assets for less than they're worth, like this situation with the ASX defensive share.

Telstra Group Ltd (ASX: TLS)

Telstra is Australia's leading telco with the most subscribers, the widest network coverage and the strongest economic moat in the sector, in my view.

The company has recently announced another price increase for its prepaid and postpaid users – the biggest increase came to around 10%, though other subscriber levels saw a smaller rise. This will come into play from 5 May 2026.

This is likely to increase Telstra's average revenue per user (ARPU) across FY26 and FY27, which could also help raise the company's margins. More revenue from the same subscribers is a powerful earnings tailwind.

I'm not sure how the company's costs are going to evolve, but I doubt the expenses are going to rise as much as revenue in the medium-term.

I think telecommunication services are one of the most defensive sectors, making Telstra an appealing business to consider as an ASX defensive share.

With Australia becoming increasingly digital, the ASX defensive share is exposed to an ongoing growth tailwind, which I believe will help subscriber numbers rise over time.

If it hikes the FY26 final dividend to the same level as the interim payment, it could offer a dividend yield of around 4%, excluding franking credits.

The post 2 ASX defensive shares I'd buy in a heartbeat appeared first on The Motley Fool Australia.

After all, there is no point going for the highest yielding ASX stock out there if its share price is due to correct.

Here are three strong ASX dividend shares, each with a yield of over 5% and with great growth potential over the next 12 months.

AGL Energy Ltd (ASX: AGL)

AGL Energy shares jumped 20% higher in February after the company's revised FY26 guidance figures excited investors. The energy company said it expects full-year underlying EBITDA of $2.02 billion to $2.18 billion. It also expects an underlying profit of $580 million to $680 million.

Most excitingly, the board also elected to increase its fully-franked interim dividend to 24 cents per share, up 4.3% from 23 cents last year. At the time of writing, that translates to a dividend of around 5.1%.

AGL is expected to grow its annual dividend even further, too. For FY26, UBS expects AGL to make an annual payout of 49 cents per share. It expects to pay 54 cents per share in FY27.

Analysts tip an upside as high as 40% for AGL shares too, to $13.25 over the next 12 months.

Rural Funds Group (ASX: RFF)

Rural Funds Group is a real estate investment trust (REIT) that is focused on agricultural assets ranging from cattle to almonds. The company has high exposure to essential food production and agricultural supply chains and is expected to benefit from long-term demand.

The ASX dividend stock has paid a quarterly unfranked dividend to investors since 2016. Investors will be paid 2.9 cents per share next month. This implies a yield of around 5.5% at the time of writing. 

Bell Potter forecasts the company will pay dividends per share of 11.7 cents in FY 2026 and FY 2027. 

Analysts tip an upside as high as 24% to $2.50 per share over the next 12 months, at the time of writing.

Dexus Industria REIT (ASX: DXI)

Dexus Industria REIT has a portfolio of workplace-focused properties comprising more than 90 assets. The listed Australian real estate investment trust (LIT) is primarily invested in industrial warehouses. It plans to provide resilient income growth and long-term risk-adjusted returns to investors. It benefits from a diversified tenant base, high occupancy, and stable rental income. 

The company has paid a quarterly unfranked or partially franked dividend since 2017. Its investors will be paid an unfranked quarterly dividend of 4.1 cents in May, implying a yield of around 6.9%.

The company is forecast to pay dividends per share of 16.6 cents in FY26 and then 16.8 cents in FY27. 

Analysts tip an upside as high as 43% over the next 12 months, to $3.40 per share, at the time of writing.

The post 3 ASX dividend shares yielding 5%+ that still have growth potential appeared first on The Motley Fool Australia.

To narrow things down, let's take a look at two ASX dividend shares that Bell Potter is bullish on and believes could rise 20% to 30% from current levels.

Here's what the broker is recommending to clients:

Rural Funds Group (ASX: RFF)

Bell Potter thinks this agricultural property company's shares are undervalued at current levels.

However, the broker sees opportunities to unlock value, which could cause a re-rating of its shares. It explains:

The ~35% discount to market NAV is well above the historical average 5% premium since listing. Counterparty profitability indicators have been improving and farm asset values have been resilient, which would suggest that the underearning on unleased assets is the largest performance drain.

Exiting or leasing these assets (combined value ~$387m) would result in reasonable AFFO accretion (14-18% on FY26e PF AFFO) with the scope to also reduce gearing, with this likely to be the greatest share price catalyst. We would expect execution against asset sales to emerge in CY26e.

Bell Potter has a buy rating and $2.50 price target on its shares. This implies potential upside of 20% for investors from current levels.

The broker also expects a 5.65% dividend yield from Rural Funds in FY 2026.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that the broker is bullish on is Universal Store.

It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

The broker thinks that the company's shares are undervalued based on its positive growth outlook. This is expected to be underpinned by an expansion in its private label product penetration and its leading position in youth fashion. It explains:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging broader category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution. We continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

Bell Potter has a buy rating and $10.50 price target on its shares. This implies potential upside of approximately 30% for investors.

In addition, a fully franked 4.5% dividend yield is expected by the broker in FY 2026.

The post These cheap ASX dividend shares could rise 20% to 30% appeared first on The Motley Fool Australia.

Here are two that could be worth a closer look.

GQG Partners Inc (ASX: GQG)

One Australian dividend share that could appeal to income investors is GQG Partners.

The fund manager has had a challenging period, with significant fund outflows over the past 12 months driven by a stretch of underperformance. This has largely been the result of its decision to avoid many of the high-flying AI-related stocks that powered markets higher.

However, that positioning now appears to be turning into a tailwind. As enthusiasm for the AI trade has cooled in recent months, GQG's relative performance has improved, which could help rebuild investor confidence.

If this continues, it may act as a catalyst for funds inflows to resume, supporting earnings growth in the periods ahead.

In the meantime, GQG is offering very attractive income. Morgans, for example, is forecasting dividends of approximately 21 cents per share in FY 2026 and FY 2027. Based on its current share price of $1.65, this would mean dividend yields over 12% for both years.

In addition, the broker sees plenty of upside on offer from GQG's shares. Last week, it upgraded them to a buy rating with a $2.03 price target. This implies potential upside of 23% for investors over the next 12 months.

Rural Funds Group (ASX: RFF)

Another Australian dividend share that could be worth considering is Rural Funds Group.

It is a real estate investment trust focused on agricultural assets, including cattle, almonds, macadamias, vineyards, and water rights. These assets are leased to experienced operators under long-term agreements, providing relatively stable and predictable income.

One of the key attractions of the business is its exposure to essential food production and agricultural supply chains. Demand for these assets is supported by long-term population growth and increasing global food consumption.

Rural Funds also benefits from inflation-linked rental increases across much of its portfolio, which can help protect income in a higher inflation environment.

But the main attraction is the income its shares offer. Bell Potter is forecasting dividends per share of 11.7 cents in FY 2026 and FY 2027. Based on its current share price of $2.10, this would mean dividend yields of 5.6% in both years.

Bell Potter has a buy rating and $2.50 price target on its shares. This suggests that upside of 19% is possible between now and this time next year.

The post 2 Australian dividend stars that still offer a good price appeared first on The Motley Fool Australia.

According to the latest cash rate futures, the market is currently pricing in a 71% probability that the central bank will lift the cash rate by 25 basis points to 4.1%.

Higher interest rates can make income-focused investments such as term deposits more attractive. However, a number of ASX dividend shares continue to offer dividend yields comfortably above the current cash rate while also providing the potential for capital growth.

Here are three dividend shares that could still be worth considering.

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share that could be worth a closer look is HomeCo Daily Needs REIT.

This real estate investment trust owns a portfolio of convenience-based retail properties across Australia. These include shopping centres and large-format retail locations anchored by tenants such as supermarkets, liquor stores, and other essential retailers.

Because these types of businesses tend to generate consistent customer traffic regardless of economic conditions, the trust benefits from relatively stable rental income and very high occupancy rates.

Importantly for income investors, HomeCo Daily Needs REIT is known for offering an attractive distribution yield that sits comfortably above current interest rates.

The company is guiding to a dividend of 8.6 cents per share in FY 2026. Based on its current share price of $1.22, this would mean a dividend yield of 7%.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be worth considering is Rural Funds Group.

The agricultural real estate investment trust owns a diversified portfolio of farming assets across Australia. These include properties used for almonds, cattle, vineyards, macadamias, and cropping.

Rather than operating the farms directly, the trust leases these assets to agricultural operators under long-term agreements. This provides a stable and predictable rental income stream that supports its distributions to investors.

Agricultural land can also benefit from long-term structural trends such as rising global food demand and limited supply of productive farmland.

Combined with a distribution yield that sits well above the current cash rate, Rural Funds Group could remain an attractive income option.

Rural Funds expects to pay shareholders an 11.7 cents per share dividend in FY 2026. Based on its current share price of $2.10, this equates to a dividend yield of 5.6%.

Transurban Group (ASX: TCL)

A final ASX dividend share that could be worth a look is Transurban Group.

This infrastructure giant owns and operates major toll roads across Australia and North America. These assets play a critical role in major transport networks and typically generate steady traffic volumes over time.

Its portfolio includes CityLink in Melbourne, Cross City Tunnel in Sydney, the Logan Motorway in Brisbane, and 95 Express Lanes in the United States.

One of Transurban's key advantages is the long-term nature of its toll road concessions. Many of its assets operate under agreements that run for decades, providing strong visibility over future revenue.

Transurban is guiding to a 69 cents per share dividend for FY 2026. Based on its current share price of $14.32, this would mean a dividend yield of 4.8%.

With a yield that sits comfortably above the current cash rate and infrastructure assets that generate reliable cash flows, Transurban could be a compelling option for investors seeking income.

The post 71% chance of RBA hike? These ASX dividend shares still beat rising interest rates appeared first on The Motley Fool Australia.

The business I'm highlighting is Rural Funds Group (ASX: RFF), a farm real estate investor that owns properties across Australia in different states and across various farming sectors.

It's invested in areas like cattle, almonds, macadamias, vineyards and cropping. Rural Funds has the flexibility to invest in additional farming sectors, if it sees opportunities elsewhere.

I'll run through some of the positives of the business.

Pleasing and reliable distribution

Rural Funds has a record of passive income reliability. It started paying a distribution in 2014 and increased its annual payout each year to 2022. Since then, it has been paying the same distribution per unit despite the headwinds of rising interest rates.

Many other ASX REITs reduced their distribution during the last few years, but not Rural Funds.

It has guided it's going to pay the same annual distribution per unit of 11.73 cents in FY26, which translates into a distribution yield of 5.5%, better than what term deposits are currently offering.

With how things are playing out globally, I wouldn't be surprised to see the ASX REIT maintain its distribution at 11.73 cents per unit in FY27.

Good rental income growth prospects

The business has very good prospects for long-term rental profit and distribution, in my view.

For starters, it has a weighted average lease expiry (WALE) of 13.2 years. This is one of the longest in the REIT sector, if not the longest. The metric shows it has a significant level of rental income locked in for the long-term.

More than half of the portfolio's revenue is linked to CPI inflation, which means Rural Funds is a pleasing option for protection against inflation, in my view. A large minority of rental contracts have fixed annual increases (plus market reviews).

In other words, most of the portfolio is going to see rental income growth each year, which is a strong tailwind for improving the underlying value of the farm and fund long-term distribution growth.

The ASX REIT is trading at great value

Rural Funds tells investors every six months what its adjusted net asset value (NAV) is.

The NAV is essentially the underlying value of the business, including the farm values, the loans, cash balance and so on. It's 'adjusted' to include the market value of the water entitlements.

At the end of December 2025, Rural Funds had an adjusted NAV of $3.10 (which was up 0.6% over the six-month FY26 half-year period).

At the time of writing, it's trading at a discount of more than 30% to its underlying value, which looks very appealing to me.

The post Why this ASX REIT is a retiree's dream appeared first on The Motley Fool Australia.

Commercial property can deliver both rising real estate prices and solid rental income. I like investing in REITs that can provide rental profit growth because that's an important driver of total shareholder returns (TSR).

I'm attracted to the following ASX REITs because of their strong distribution yields and potential inflation protection.

Rural Funds Group (ASX: RFF)

Rural Funds owns a portfolio of farmland across Australia which includes cattle, almonds, macadamias, vineyards and cropping.

The business has deliberately built its portfolio to be focused on farms that offer growth and where Rural Funds can invest to boost the productivity (such as increased water access).

The business also owns a significant amount of water entitlements that can be leased to farmers.

It offers inflation protection because a significant portion of its rental contracts have rental income linked to inflation. While higher interest rates are a (shorter-term) headwind, it can lead to permanently higher rental income. Most of the rest of its rental contracts have fixed annual increases, along with market reviews.

It currently expects to pay a distribution yield of 5.7% in FY26, which I'd say is a solid starting point.

Charter Hall Long WALE REIT (ASX: CLW)

The other ASX REIT I'll point out is this one which owns a diversified portfolio of properties which aim to give investors rental income on long contracts.

The REIT has a weighted average lease expiry (WALE) of around nine years. That's a lot of rental income that has already been locked in!

I like that it's diversified across hotels, distribution and logistics centres, telecommunication exchanges, data centres, Bunnings properties, government-tenanted buildings and so on.

By owning a wide array of assets it reduces the risk of being too exposed and means it can invest in almost any property sector for the best opportunities.

The business can provide inflation protection because roughly half of the properties have rental income that's linked to inflation, while the rest have fixed annual increases. This growth won't shoot the lights out with growth, but it can provide regular growth.

It's expecting to slightly increase its annual distribution in FY26 by 2% to 25.5 cents per security, translating into a distribution yield of 7%. That's a great starting point for passive income investors, with the potential for long-term growth.

The business looks better value after falling around 20% over the last six months.

The post 2 ASX REITs I'd buy today for passive income appeared first on The Motley Fool Australia.

With the right mix of companies, even a relatively small investment can begin producing regular cash payments while also offering the potential for long-term capital growth.

For example, if you had $5,000 ready to invest today, spreading it across a few high-quality dividend payers could be a simple way to start building an income-focused portfolio.

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

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share to consider is HomeCo Daily Needs REIT.

It owns a portfolio of convenience-based retail properties across Australia. These centres are typically anchored by essential services such as supermarkets, medical facilities, childcare centres, and other everyday retailers.

Because these tenants provide services people rely on regularly, the portfolio tends to benefit from relatively stable demand even during economic downturns.

This stability has allowed the REIT to deliver attractive and reliable income for investors. Based on recent guidance, HomeCo Daily Needs REIT currently offers a dividend yield of 6.9%.

For income-focused investors, this makes it one of the more generous dividend payers on the ASX.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be worth a look is Rural Funds Group.

It is an agricultural real estate investment trust that owns farmland and agricultural infrastructure. Its assets include almond orchards, cattle properties, vineyards, and macadamia farms across Australia.

Instead of operating these farms directly, Rural Funds leases the assets to experienced agricultural operators on long-term contracts.

This structure provides investors with exposure to the agriculture sector while also generating relatively predictable rental income.

Rural Funds has a long history of paying steady distributions to investors and is currently guiding to an annual distribution of around 11.7 cents per unit, which equates to a dividend yield of roughly 5.5% at recent prices.

Super Retail Group Ltd (ASX: SUL)

A third ASX dividend share to consider is Super Retail Group.

Super Retail operates several well-known Australian retail brands including Supercheap Auto, Rebel, BCF, and Macpac.

These businesses give the company exposure to automotive, sports, outdoor recreation, and lifestyle retailing, which have proven to be resilient categories over time.

Super Retail has also built a strong reputation for generating solid cash flow and returning a meaningful portion of its profits to shareholders through dividends.

While retail earnings can fluctuate with consumer spending cycles, the company's strong brand portfolio and loyal customer base have supported attractive dividend payments in recent years.

At present, its shares are expected to offer a 4.3% dividend yield in FY 2026.

The post 3 ASX dividend shares to buy with $5,000 appeared first on The Motley Fool Australia.

The goal is simple. Own quality assets that produce steady cash flow and let time and compounding work their magic.

On the ASX, dividend shares can play a powerful role in that strategy. Here is how I would approach it.

Step one: Focus on cash flow

When building an early retirement portfolio, the first priority is reliability. That means looking for businesses with visible earnings, long-term contracts, or structural demand drivers.

Transurban Group (ASX: TCL) is a good example.

It owns major toll roads across Australia and North America. These are essential infrastructure assets that commuters use every day. The company's long concession agreements and inflation-linked tolling mechanisms provide revenue visibility over many years.

Traffic volumes can fluctuate slightly with economic conditions, but population growth and urban expansion tend to support long-term usage. That steady demand underpins its distributions.

Step two: Add infrastructure income

Energy infrastructure can provide another layer of stability.

APA Group (ASX: APA) owns gas pipelines and energy assets across Australia. These are long-life, contracted assets that generate recurring cash flow.

Because pipelines are critical pieces of infrastructure, APA's earnings are less exposed to short-term economic swings than many other sectors. Its predictable cash flow profile has supported consistent dividends over time.

For someone aiming to retire early, having exposure to essential infrastructure can help smooth out portfolio volatility.

Step three: Diversify

Retiring early does not mean concentrating risk. Adding exposure to different asset types can improve resilience.

Rural Funds Group (ASX: RFF) provides exposure to agricultural assets such as cattle properties, almond orchards, and vineyards.

Rather than farming directly, it leases its properties to experienced operators under long-term agreements. That creates rental-style income backed by real assets and long-term food demand.

Agriculture can have cyclical elements, but global population growth and food security needs create a structural foundation for the sector.

You might also want to consider diversifying further with banks, miners or supermarket operators. Alternatively, you could focus on an exchange traded fund (ETF) like the Vanguard Australian Shares High Yield ETF (ASX: VHY).

Step four: Compounding

If you are able to invest $500 a month into ASX dividend shares and generate an average 10% per annum return (not guaranteed), your portfolio would grow to be worth approximately $620,000 after 25 years.

At that level, averaging a 5% dividend yield across this portfolio would pull in passive income of $31,000 per annum.

Foolish takeaway

To retire early, you need to build enough capital to generate the income you require.

Getting there usually takes time, consistent investing, and reinvesting dividends along the way.

But the effort will certainly be worth it in the end.

The post How to retire early using ASX dividend shares appeared first on The Motley Fool Australia.

With dividend guidance clearer and market volatility still creating pockets of value, this could be a good time to position a portfolio for reliable passive income through the rest of 2026.

Here are three of the best ASX dividend shares to consider this month.

APA Group (ASX: APA)

The first ASX dividend share to look at in March is APA Group.

APA owns and operates energy infrastructure assets across Australia. This includes gas transmission pipelines and renewable energy infrastructure. These are long-life assets that typically operate under contracted or regulated frameworks.

That structure gives APA strong visibility over future cash flows. It is not a business that relies on day-to-day consumer spending or short-term economic swings.

For FY 2026, APA is guiding to a dividend of 58 cents per share. Based on its current share price, this equates to a dividend yield of approximately 6.2%.

For investors seeking above-average yield backed by essential infrastructure assets, APA stands out as a best buy.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be among the best to buy this month is Rural Funds Group.

It provides exposure to agricultural assets including cattle properties, almond orchards, vineyards, and cropping farms. Rather than farming directly, it typically leases these assets to experienced operators under long-term arrangements.

This model allows Rural Funds to generate rental-style income while benefiting from exposure to Australian agricultural land and food production.

The company is guiding to dividends of 11.7 cents per share in FY 2026. Based on its current share price, this represents an attractive dividend yield of around 5.5% at current levels.

Agriculture can have cyclical elements, but long-term demand for food production and land scarcity provide structural support for the sector.

Transurban Group (ASX: TCL)

A final ASX dividend share to consider in March is Transurban.

Transurban owns and operates toll roads across Australia and North America, including major urban motorway networks. These are critical transport links with high barriers to entry and long concession lives.

Traffic volumes can fluctuate slightly with economic conditions, but over time, population growth and urban expansion tend to drive higher usage.

For FY 2026, Transurban is guiding to a dividend of 69 cents per share. Based on its current share price, this equates to an attractive dividend yield of approximately 4.75%.

The post 3 of the best ASX dividend shares to buy in March appeared first on The Motley Fool Australia.

That's because the ASX boards are filled to the brim with shares that provide investors with dividends every three to six months.

But with so many options to choose from, it can be hard to decide which ones to buy over others.

To narrow things down, I have picked out three ASX dividend shares that analysts are bullish on at present.

Here's what they are recommending and the sort of dividend yields you can expect from them in the near term:

APA Group (ASX: APA)

The first ASX dividend share to consider is APA Group. It owns and operates critical energy infrastructure across Australia, including gas pipelines, storage facilities, and power assets. These assets are usually long life and regulated or contracted, which helps provide steady and visible cash flows.

Macquarie is positive on APA's outlook and currently has an outperform rating and $9.58 price target on its shares.

As for income, Macquarie is forecasting dividends of 58 cents per share in FY 2026 and then 59 cents per share in FY 2027. Based on its current share price of $9.15, that equates to very attractive dividend yields of 6.3% and 6.4%, respectively.

Elders Ltd (ASX: ELD)

The team at Macquarie is also positive on Elders and sees it as an ASX dividend stock to buy now.

Elders is an agribusiness company that provides rural and livestock services, agricultural inputs, and real estate services to Australia's farming sector.

The broker is expecting Elders to pay fully franked dividends of 36 cents per share in FY 2026 and then 37 cents per share in FY 2027. Based on its current share price of $7.13, this would mean dividend yields of 5% and 5.2%, respectively.

Macquarie has an outperform rating and $8.40 price target on its shares.

Rural Funds Group (ASX: RFF)

A third ASX dividend share analysts like is Rural Funds Group.

It provides exposure to high-quality Australian agricultural assets, including cattle properties, cropping farms, and almond orchards. These assets are leased to high-quality operators under long-term agreements, which helps smooth income over time.

Bell Potter is forecasting dividends of 11.7 cents per share in both FY 2026 and FY 2027. Based on its current share price of $2.10, this would mean generous dividend yields of 5.6% in each year.

Bell Potter currently has a buy rating and a $2.45 price target on the company's shares.

The post 3 excellent ASX dividend shares to buy this month appeared first on The Motley Fool Australia.

The farmland real estate investment trust (REIT) just reported its FY26 half-year result. The income and earnings were not a surprise, but the ongoing growth of the net asset value (NAV) was a pleasing positive.

As a reminder, the business owns a portfolio of farmland across Australia that includes cattle, almonds, vineyards, macadamias and cropping.

Strong rental earnings

The business has a diverse portfolio of assets and a strong group blue-chip tenants, giving Rural Funds resilient rental income each year. Around 84% of forecast income for FY26 comes from corporate and institutional tenants.

It has rental growth built into its contracts which are linked to either inflation, or the contract(s) has fixed annual increases. It can also develop farms to unlock more rental income, either by adding infrastructure or changing it to a better form of crop.

For the first six months of FY26, the business reported that net property income increased 6.8% to $48.6 million, primarily due to additional rental income earned on macadamias developments.

Pleasingly, its rental income is locked in for the long-term because it has a long weighted average lease expiry (WALE) of around 13 years, which is one of the longest in the ASX REIT sector.

Great value ASX dividend stock

Rural Funds regularly tells investors what its portfolio is worth with the adjusted NAV figure  – it's adjusted to include the market value of the water entitlements it owns. The NAV includes all assets and liabilities, including the property portfolio, loans, cash and so on.

In the first half of FY26, it reported that its adjusted NAV grew by 0.6% to $3.10. This means that, at the time of writing, it's trading at a discount of more than 30%, which is very attractive to me.

There are not many asset-heavy businesses on the ASX trading at a discount of 30% to their underlying value. That makes it a bargain buy, in my opinion.

Strong passive income yield

The ASX dividend stock is expecting to pay a very pleasing distribution during FY26, equating to a very attractive yield.

The Rural Funds unit price has risen 4% during February (at the time of writing), but the business still offers a very good yield.

Its distribution guidance of 11.73 cents per unit translates into a potential passive income yield of 5.5%, which is better than what term deposits are offering. I'm expecting the distribution to increase in the coming years as rental earnings increase.

The post Why I'd buy this top ASX dividend stock for a 5.5% passive income yield appeared first on The Motley Fool Australia.

But which ones could be buys for passive income? Let's take a look at two that analysts at Bell Potter are bullish on right now:

Harvey Norman Holdings Ltd (ASX: HVN)

This leading household goods retailer could be an ASX dividend share to buy according to the broker.

It likes Harvey Norman due to its attractive valuation, global property portfolio, and good yield. It said:

Despite the strong re-rate in the name, HVN trades at ~2.0x market capitalisation to freehold property value as Australia's single largest owner in large format retail with a global portfolio surpassing $4.5b and collectively owning ~40% of their stores (franchised in Australia and company operated offshore). This sees our view that of the 1-year forward ~19x P/E multiple as justified considering the multiple catalysts near/mid-term.

The broker expects this to underpin fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $6.28, this would mean dividend yields of 4.9% and 5.6%, respectively.

Bell Potter has a buy rating and $8.30 price target on its shares.

Rural Funds Group (ASX: RFF)

The broker also believes that Rural Funds could be an ASX dividend share to buy for passive income.

Rural Funds is an Australian agricultural property company with over 60 assets across five sectors. This includes vineyards, orchards, and cattle farms.

It currently boasts a weighted average lease expiry (WALE) of almost 14 years, which gives it great visibility on its future earnings and distributions. Despite this, Rural Funds' shares are trading at a deep discount to their net asset value (NAV). Bell Potter said:

Our Buy rating is unchanged. The -~35% discount to market NAV remain higher than average (~6% premium since listing) and likely reflects the proportion of assets that are underearning as operating farms. With a continued improvement in most counterparty profitability indicators in recent months (i.e. cattle, almond and macadamia nut prices), resilience in farming asset values and the progress made in creating headroom in funding lines to complete the macadamia development we see this as excessive.

The broker is expecting dividends per share of 11.7 cents in both FY 2026 and FY 2027. Based on its current share price of $2.12, this would mean dividend yields of 5.5% for both years.

Bell Potter currently has a buy rating and $2.50 price target on its shares.

The post 2 ASX dividend shares to buy for passive income appeared first on The Motley Fool Australia.

That's because listed below are three shares that Bell Potter thinks could be top buys for income investors. Here's what you need to know:

Cedar Woods Properties Limited (ASX: CWP)

Bell Potter thinks Cedar Woods could be an ASX dividend share to buy. It is one of Australia's leading property developers with a diverse portfolio. This includes subdivisions in emerging residential communities, high-density apartments, and townhouses in inner-city neighbourhoods.

The broker believes the company is well-positioned to benefit from Australia's chronic housing shortage. It expects this to underpin dividends per share of 35 cents in FY 2026 and then 39 cents in FY 2027. Based on its current share price of $8.15, this equates to 4.3% and 4.8% dividend yields, respectively.

Bell Potter has a buy rating and $10.00 price target on its shares.

Elders Ltd (ASX: ELD)

Bell Potter is also feeling bullish on Elders and sees it as an ASX dividend share to buy.

It is an agribusiness company that provides rural and livestock services, agricultural inputs, and real estate services to Australia's farming sector.

Bell Potter has been pleased with the performance of its base business and believes it has multiple growth drivers. In addition, the broker feels that the market is undervaluing the company's Delta Agribusiness acquisition.

With respect to income, the broker is forecasting fully franked dividends of 43 cents per share in FY 2026 and then 45 cents per share in FY 2027. Based on its current share price of $7.22, this would mean dividend yields of 6% and 6.2%, respectively.

Bell Potter has a buy rating and $9.45 price target on its shares.

Rural Funds Group (ASX: RFF)

A final ASX dividend share to consider for a $5,000 investment is Rural Funds.

It is a property company that owns agricultural assets such as cattle properties, vineyards, and cropping land. Rural Funds leases these properties to high-quality tenants on long-term agreements with periodic rental increases built in.

Bell Potter is expecting the company to reward its shareholders with 11.7 cents per share dividends in FY 2026 and FY 2027. Based on its current share price of $2.07, this would mean attractive 5.7% dividend yields in both years.

The broker currently has a buy rating and $2.45 price target on its shares.

The post 3 top ASX dividend shares to buy with $5,000 appeared first on The Motley Fool Australia.

It can be smart to focus on businesses with predictable cash flows, defensible assets, and the balance sheet strength to support dividends through different market conditions. When those boxes are ticked, dividend yields can look far more reliable than headline numbers alone suggest.

With that in mind, here are three defensive ASX dividend shares that brokers are currently recommending to clients.

APA Group (ASX: APA)

The first ASX dividend share to consider is APA Group. It owns and operates critical energy infrastructure across Australia, including gas pipelines, storage facilities, and power assets. These assets are typically long life and regulated or contracted, which helps provide steady and visible cash flows.

Macquarie is positive on APA's outlook and currently has an outperform rating and $9.23 price target on its shares.

As for income, Macquarie is forecasting dividends of 58 cents per share in FY 2026 and then 59 cents per share in FY 2027. Based on its current share price of $9.23, that equates to very attractive dividend yields of 6.3% and 6.4%, respectively.

Rural Funds Group (ASX: RFF)

Another ASX dividend share analysts like is Rural Funds Group. It provides exposure to high-quality Australian agricultural assets, including cattle properties, cropping farms, and almond orchards. These assets are leased to high-quality operators under long-term agreements, which helps smooth income over time.

Bell Potter currently has a buy rating and a $2.45 price target on the company's shares. The broker thinks its shares are being undervalued based on its net tangible assets, potentially making now an opportune time to invest.

This is especially the case for income investors, with Bell Potter forecasting dividends of 11.7 cents per share in both FY 2026 and FY 2027. Based on its current share price of $2.00, this would mean generous dividend yields of 5.85% in each year.

Telstra Group Ltd (ASX: TLS)

The final ASX dividend share analysts are backing is Telstra. It is of course Australia's largest telecommunications provider, with dominant positions in mobile, fixed-line, and enterprise services. Its scale and network investments continue to support recurring revenue and cash generation.

Macquarie is positive on the company and has an outperform rating and $5.08 price target on its shares.

With respect to dividends, Macquarie is forecasting fully franked payouts of 20 cents per share in FY 2026 and 21 cents per share in FY 2027. Based on its current share price of $4.87, this equates to dividend yields of 4.1% and 4.3%, respectively.

The post 3 defensive ASX dividend shares that analysts are tipping as top buys appeared first on The Motley Fool Australia.

REITs give investors exposure to the commercial property sector, with landlords leasing their real estate to tenants.

The advances in AI have opened up questions about business models in certain industries. But, REITs can provide investors with secure rental income that is contracted, sometimes for a large number of years.

I'd focus on businesses that seem likely to deliver organic rental growth, which is a driver of the value of the real estate and the distribution.

Rural Funds Group (ASX: RFF)

Rural Funds is unique on the ASX – it owns a portfolio of farmland across Australia, which includes cattle, almonds, macadamias, vineyards and cropping.

I think it's a good idea for the business to spread its investments across different sectors because that means not having all of its eggs in one basket. It also gives the business a wider search zone to find the best opportunities that can provide a mixture of capital growth and passive income.

The business is expecting to pay an annual distribution per unit of 11.73 cents in FY26, translating into a forward distribution yield of 5.8%.

The ASX REIT has agreed incredibly long rental contracts with many of its tenants, resulting in a weighted average lease expiry (WALE) of 13.9 years, giving investors significant income security.

The business is benefiting from built-in rental growth, with a mix of lease indexation mechanisms and market rent reviews. It also has a development and leasing pipeline, with productivity improvements and conversion to 'higher and better use' development opportunities. I'm expecting these growth avenues to help improve the value of the farms and grow rental earnings over time.

Centuria Industrial REIT (ASX: CIP)

Another ASX REIT I'm expecting to have a good future is Centuria Industrial REIT, which is the largest domestic pure play industrial REIT. It has a portfolio of industrial assets across key metropolitan locations throughout Australia, with a quality and diverse tenant base.

Industrial assets are benefiting from tailwind demands including e-commerce growth, more demand for refrigerated space (for food and medicine), data centres and more. This is helping drive the long-term rental potential of this business.

This is helping drive the rental earnings, underlying value of the properties and the distribution.

In FY26, Centuria Industrial REIT expects its funds from operations (FFO) to grow to a range of between 18.2 cents to 18.5 cents per unit (representing growth of up to 6% year-on-year). Using the low end of that guidance, it's trading at less than 18x its projected rental earnings.

Additionally, the ASX REIT's distribution per unit is forecast to be 3% higher year over year at 16.8 cents. That works out to be a forecast distribution yield of 5.2%.

With the FY25 result in August, the REIT's fund manager Grant Nichols said:            

Looking ahead, CIP is well positioned to take advantage of the positive outlook for Australian urban infill industrial real estate. Vacancy rates remain very low, while supply is very constrained – despite the strong rental growth we have seen during the past five years, market rents remain below the required economic rent for new development in virtually all markets. Coupled with the ongoing industry tailwinds, most notably population growth and increasing e-commerce adoption, the outlook for rental growth over the medium term is compelling.

The post 2 ASX REIT stocks I want to buy for a lifetime of passive income! appeared first on The Motley Fool Australia.

Large declines don't happen without a reason. They are usually sparked because the market thinks the company's future earnings power is being reduced.

In this case, it seems that many investors believe future earnings may not be as strong as previously expected.

In this case, there are heightened fears that artificial intelligence (AI) may be able to challenge existing business models, particularly ones that utilise technology to deliver their service.

So, in this circumstance, it could be an idea to look at ASX defensive shares.

Why ASX defensive shares could make sense right now

If fast-growing businesses aren't expected to see as much profit generation, then perhaps it could be a good idea to look at names that could deliver reliable earnings. If profit can grow as expected, then this could help provide support for the share price and perhaps even enable a higher share price if investors are looking for a safe haven.

Additionally, some ASX defensive shares may be viewed as ideas for passive income. The stable earnings can also help provide stable and growing dividends from those sorts of businesses.

Which reliable businesses I'd look at

There are a few different areas of the market that I think could provide investors with underlying earnings stability over the long-term. Of course, there can be no guarantee share prices won't be volatile in the short-term – that is just what happens with the share market occasionally.

Real estate investment trusts (REITs) are a good sector because of how they can generate resilient defensive rental income and pay distributions to investors. I'd invest in businesses like Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW) and Rural Funds Group (ASX: RFF).

Businesses involved in providing essential services to their customers could be useful ASX defensive share buys. I'm thinking of names like Telstra Group Ltd (ASX: TLS), APA Group (ASX: APA) and Propel Funeral Partners Ltd (ASX: PFP).

Defensive food businesses could be smart buys – we all need to eat. I'm thinking of names like Coles Group Ltd (ASX: COL) and Rivco Australia Ltd (ASX: RIV).

Finally, diversified businesses with defensive cash flow generation could also be smart long-term choices, such as Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Wesfarmers Ltd (ASX: WES).

I think most, if not all, of the above businesses are capable of growing their earnings over the long-term, even if AI affects the tech sector.

The post Is this the right time to invest in ASX defensive shares? appeared first on The Motley Fool Australia.