3 top ASX dividend share buys for passive income in February

Many Aussies may be looking for a source of passive income, and I’m going to talk about three ASX dividend shares that I believe are solid picks today.

I’m expecting all three businesses I’m going to highlight to increase their payouts in 2026 and, hopefully, beyond.

On top of that, all three ASX dividend shares are likely to provide shareholders with a compelling dividend yield that’s better than savings in the bank.

Charter Hall Long WALE REIT (ASX: CLW)

The first business I want to highlight is a real estate investment trust (REIT) that owns a diversified portfolio of properties across a variety of sectors, including Bunnings properties, hotels, service stations, telecommunications exchanges, data centres, distribution centres, and more.

The business has built a portfolio that has long rental agreements with tenants. At June 2025, its weighted average lease expiry (WALE) was approximately nine years, giving investors pleasing rental security.

It’s benefiting from steady rental growth with either fixed annual increases or inflation-linked increases, which has helped it provide guidance that its distribution will increase to 25.5 cents per security in FY26. This would be a distribution yield of 6.4% at the time of writing.

MFF Capital Investments Ltd (ASX: MFF)

This business is best-known as a listed investment company (LIC) which invests in a high-quality portfolio of international stocks that are likely to deliver compounding profits for the foreseeable future.

MFF can translate the investment profits that it makes into a rising dividend thanks to the company’s structure and the ability of the board of directors to decide on the level of the passive income.

The ASX dividend share has been steadily increasing its regular dividend per share over the past several years, and the company expects to increase its biannual dividend to 10 cents per share, implying a grossed-up dividend yield of at least 5.9% for FY26, including franking credits, at the time of writing.

I believe the portfolio’s investment returns can continue to perform well thanks to numerous strong businesses, including compelling recent additions.

Coles Group Ltd (ASX: COL)

Food retailing is one of the most defensive industries on the ASX, in my opinion. Coles has an important role in Australian society, and it’s doing better than Woolworths Group Ltd (ASX: WOW) at growing sales thanks to its product offering.

Coles has invested significantly in new automated distribution centres and customer fulfilment centres, which should help improve its margins, efficiencies, product freshness, and e-commerce offering.

The completion of those assets should help the ASX dividend share’s earnings and cash flow, helping fund larger passive income in the coming years.

The projection on CommSec suggests the business could pay an annual dividend per share of 79 cents in FY26. That translates into a potential grossed-up dividend yield of 5.3% at the time of writing, including franking credits.

The post 3 top ASX dividend share buys for passive income in February appeared first on The Motley Fool Australia.

More reading

• Here’s how you could turn the stock market into a $1,000 monthly passive income machine
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• 5 ASX stocks to hold for the next decade
• 2 ASX blue-chip shares offering big dividend yields
• Passive income: How to earn safe dividends with just $20,000

Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. 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 Woolworths Group. The Motley Fool Australia has recommended Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.