3 defensive ASX dividend shares I’d buy and hold

Defensive ASX dividend shares can be useful when the market feels uncertain.

I do not expect them to be exciting every year. I want businesses with strong market positions, reliable demand, and the ability to keep paying income through different parts of the cycle.

Three ASX dividend shares I would buy and hold are named in this article.

Telstra Group Ltd (ASX: TLS)

The first defensive ASX dividend share I like is Telstra.

Telstra owns essential telecommunications infrastructure and provides mobile, internet, and connectivity services to millions of Australians.

That gives it a defensive quality I find attractive. People may cut back on some discretionary spending when budgets are tight, but mobile and internet access are close to essential for households and businesses.

I also like Telstra’s mobile network position. The company has invested heavily in its network over many years, and that remains a key competitive advantage.

This does not mean Telstra is risk-free. Competition, regulation, capital spending, and technology shifts can all affect the business. But I think its earnings base is more resilient than many other ASX shares.

For income investors, Telstra’s fully franked dividends are a major attraction. The dividend yield may not always be the highest on the market, but I think the combination of income, franking, and defensive demand makes it a strong dividend holding.

Coles Group Ltd (ASX: COL)

Another ASX dividend share I would buy and hold is Coles.

Supermarkets are not immune from pressure. Costs can rise, competition can be intense, and shoppers are always looking for value.

But food and household essentials are still repeat-purchase categories. That gives Coles a level of demand resilience that many businesses do not have.

I also think Coles has several ways to keep improving over time. Private label, loyalty, online grocery, supply chain investment, and store productivity can all help the business defend margins and serve customers more efficiently.

In an uncertain economy, I think value becomes even more important. Coles has the scale and brand strength to compete for household spending while still generating cash flow.

Transurban Group (ASX: TCL)

The third ASX dividend share I would consider is Transurban.

Transurban owns toll road assets in major urban areas. These are long-life infrastructure assets that can generate cash flow over many years.

I like the toll road model because it is linked to transport demand, population growth, and urban congestion. Traffic can move around in the short term, but over long periods, well-located road networks can remain highly valuable and support growing distributions.

There are risks. The company carries debt, and higher interest rates can affect infrastructure valuations. Traffic levels, regulation, project costs, and political pressure can also influence returns.

But I think Transurban still has attractive defensive qualities. Its assets are difficult to replicate, and its income profile can appeal to investors looking beyond traditional bank dividends.

Foolish takeaway

Defensive dividend shares do not need to be exciting to be useful.

For a long-term income portfolio, I think the key is owning businesses that can keep generating cash even when the economic backdrop becomes less friendly. These three ASX shares are exposed to different parts of everyday life, which is what makes the mix appealing to me.

They will not remove risk from a portfolio, and dividends are never guaranteed. But for investors wanting income, resilience, and a little more balance, I think they could be shares worth holding for years.

The post 3 defensive ASX dividend shares I’d buy and hold appeared first on The Motley Fool Australia.

More reading

• Passive income investors: Term deposits or ASX dividend stocks in 2026?
• 3 of the best ASX dividend shares to buy in June
• Why are Telstra shares falling and should investors be concerned?
• 2 ASX dividend shares I’d buy for reliable passive income
• Why Telstra and these ASX dividend shares could be top buys for income

Motley Fool contributor Grace Alvino has positions in Transurban Group. 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.