Top picks: 3 ASX dividend stocks for stress-free passive income

When I’m looking for ASX dividend stocks to buy and hold for passive income, I like to pick companies that will (hopefully) let me sleep well at night. Investing can be stressful at times, and it certainly helps if we can be assured, as much as practically possible, that those dividend paychecks will be arriving in the proverbial mailbox, rain or shine.

Of course, no ASX dividend stock offers absolute income security. You’ll have to invest in a term deposit for that. But even so, there are a few ASX dividend stocks out there that I think offer the next best thing: a reliable source of income that, barring some unexpected black swan event, can be counted on to regularly deposit cash in your brokerage account.

Here are three of those top picks.

Three stress-free ASX dividend stocks to buy for reliable passive income today

Coles Group Ltd (ASX: COL)

First up, we have ASX 200 passive income star Coles. Coles, despite the longevity of the company itself, has only been on the ASX in its own right since late 2018. Since that time, though, the company has built up an impressive track record of dividend payments, delivering an annual dividend increase each year.

Coles is a mature and established consumer staples stock. Given it sells food and household essentials at low prices, Coles is a highly defensive stock and thus, in my view at least, a reliable source of passive income. Its dividends typically come fully franked too, as an added bonus.

iShares Global Consumer Staples ETF (ASX: IXI)

Continuing on the consumer staples train, next up we have this exchange-traded fund (ETF). The iShares Global Consumer Staples ETF is a fund that holds the world’s leading consumer staples shares. These shares range from Walmart, Coca-Cola Co, and Nestle to Procter & Gamble, Clorox, and British American Tobacco. Coincidentally, you’ll also find Coles, as well as its arch-rival Woolworths Group Ltd (ASX: WOW), in this ETF’s portfolio.

Like Coles, these stocks sell goods that customers tend to buy regardless of the economic weather. Most are also mature dividend payers with resilient business models. In my eyes, that makes IXI a top pick for stable passive income paycheques, with some added international diversity thrown in.

Telstra Group Ltd (ASX: TLS)

Last but not least, at least from a passive income standpoint, is the ASX telco Telstra. Telstra is an ASX veteran, having been listed in the Australian markets for almost three decades. Over that time, it has become one of the most popular dividend stocks on the ASX, and for good reason. Telstra also has an impressive dividend history. Investors haven’t faced a dividend cut since 2018, when the NBN rollout forced the company to restructure its business model.

But those days are long gone. Telstra held its dividends steady over the pandemic and increased them every year since 2022. Given that the demand for internet and mobile connectivity is such a fundamental necessity in our modern world, the leading provider of these services in Australia is a great long-term bet for passive income in my view. Like Coles, Telstra’s dividends tend to come fully franked too.

The post Top picks: 3 ASX dividend stocks for stress-free passive income appeared first on The Motley Fool Australia.

More reading

• 5 top ASX dividend shares I would buy with $5,000
• Two ASX 200 stocks with buy recommendations from Ord Minnett
• 5 ASX shares I’d buy with $10,000 this week
• Why is everyone talking about Telstra shares this week?
• Are these two struggling consumer staples shares a bargain?

Motley Fool contributor Sebastian Bowen has positions in Coca-Cola and Procter & Gamble. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended British American Tobacco P.l.c. and Nestlé and has recommended the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool Australia has positions in and has recommended Telstra Group, Woolworths Group, and iShares International Equity ETFs – iShares Global Consumer Staples ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.