Why these excellent ASX dividend shares could be strong buys for passive income

There are plenty of ASX shares offering attractive dividend yields right now.

But when it comes to building passive income, I think it pays to look beyond the size of the next dividend.

After all, a company that can maintain and gradually grow its dividends could be far more rewarding over the long term than one offering a high yield that proves unsustainable.

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

APA Group (ASX: APA)

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

It owns and operates a vast network of energy infrastructure across Australia, including gas pipelines, processing facilities, storage assets, and electricity transmission infrastructure.

One of the best things about APA is that much of its revenue comes from long-term agreements with customers that need access to its infrastructure. This provides a degree of predictability to its cash flows, which is particularly important for a company paying regular distributions to shareholders.

Speaking of which, for FY 2027, APA is forecast to offer a dividend yield of approximately 5.3%.

Transurban Group (ASX: TCL)

Another ASX dividend share that could be a strong option for income investors is Transurban.

It owns and operates major toll roads in Australia and North America, generating revenue whenever motorists use its networks.

One of Transurban’s strengths is that its roads are already an established part of how people travel around major cities.

Whether motorists are commuting to work, making deliveries, or travelling for other reasons, there is an ongoing need for roads that help them avoid congestion.

And as populations grow, traffic volumes could increase over time, driving its dividend higher.

For FY 2027, Transurban is guiding to a 72 cents per share dividend, which represents a yield of around 5.4% at current prices.

Woolworths Group Ltd (ASX: WOW)

A final ASX dividend share that could be worth considering is Woolworths.

Woolworths is one of Australia’s largest retailers, with millions of customers shopping at its supermarkets every week.

This gives it a substantial and recurring source of revenue, even when households are cutting back on discretionary purchases.

The opportunity now is for management to improve the company’s operating performance and rebuild earnings after a tough period.

If Woolworths can regain momentum while keeping costs under control, there is potential for profits and dividends to grow over the coming years.

In the meantime, the market is expecting a dividend yield of around 2.9% in FY 2027.

The post Why these excellent ASX dividend shares could be strong buys for passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woolworths 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 Apa 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.