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2 defensive ASX dividend stocks for reliable income

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Defensive ASX dividend stocks are well-established companies with stable earnings regardless of what stage of the economic cycle we are in. 

It’s this unwavering stability which means they can offer a consistent and reliable dividend payment to shareholders.

And amid volatile global sharemarkets, a stable passive income should be on every investors’ radar right now.

Here are two defensive ASX dividend stocks that are at the top of my list.

Transurban Group (ASX: TCL)

Transurban is widely considered a high-grade defensive ASX dividend stock. The company operates toll roads in Australia and the US.

These toll roads usually have stable traffic volumes throughout the year. This means that Transurban is able to generate a resilient cash flow regardless of the economic conditions. 

Roads are an essential service and even in the event of a downturn, people still need to travel to work or transport goods and services. 

Another bonus is most of the toll roads are on an annual contract, which means Transurban is able to increase its toll prices each year in line with rising inflation.

Transurban pays two dividends per year. In February, the toll road operator paid an interim dividend of 34 cents per share, unfranked.

For FY26, the company has forecast a distribution of 69 cents per security, which implies a forward dividend yield of 4.9%. 

Telstra Group Ltd (ASX: TLS) 

Telstra is a classic defensive asset. These days, internet access and mobile phone connectivity are a daily necessity rather than a perk. Regardless of how severe inflation or the cost of living gets, connectivity and telecommunications will remain a high priority for most Australians.  

This means Telstra shares can usually perform steadily, regardless of what stage of the economic cycle we’re in. And this is great news for investors who want to hedge against potential volatility elsewhere in the index.

The ASX dividend stock is able to offer a consistent and reliable passive income to investors too. In fact, its dividend payout ratio is close to 100% of its earnings. 

Telstra pays investors two dividends per year. Last month, investors were paid an interim dividend of 10.5 cents, 90.48% franked. Telstra has forecast to pay a 20-cent dividend for FY26.

For FY25 the company paid investors an annual dividend of 19 cents per share. At the time of writing that translates to a dividend yield of around 3.89%.

The post 2 defensive ASX dividend stocks for reliable income appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. 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 Telstra Group and Transurban Group. 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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