Income investors, particularly those reliant on the passive income from ASX dividend stocks to fund their retirements or lifestyles, tend to be a discerning lot. The dividend shares that tend to make it into their income portfolios usually share some key characteristics. Strong and stable dividend yields are one, of course. But you can probably add defensive earnings bases, mature business models, and the ability to attach full franking credits to their dividends, too.
Today, let’s discuss two ASX dividend stocks that I think tick all of these boxes and are thus worthy of being in any income-focused Australian share portfolio.
2 ASX dividend stocks that should be in every income investor’s portfolio
Telstra Group Ltd (ASX: TLS)
First up, we have the ASX telco, Telstra, which has been a favourite amongst the ASX’s dividend investors for decades. This is no accident. Telstra has made an art out of leveraging its status as Australia’s dominant telecommunications provider for the benefit of its shareholders.
The telco commands a comfortable lead in market share of both mobile services and fixed-line internet in Australia. Many customers, particularly in rural and regional areas, have no choice but to use Telstra’s mobile network. That gives this ASX dividend stock a wide economic moat.
We can see this play out in Telstra’s dividends. The telco has been raising its shareholder payouts like clockwork in recent years, thanks to a defensive and resilient earnings base. Today, you can get this passive income payer on a trailing dividend yield of about 4%, which comes with full franking credits attached too.
Coles Group Ltd (ASX: COL)
Next up, we have another reliable dividend payer in Coles. Just like Telstra, I like Coles as an income stock thanks to its inherent defensiveness. Coles sells food, drinks, household essentials, and alcoholic beverages â all staple products that tend to be in high demand regardless of the health of the broader economy. After all, we all need to eat and stock our households with life’s essentials, regardless of whether the economy is booming or in recession.
Over the past seven years, the Australian economy has endured a pandemic, a recession, and a period of historically high inflation. Despite this, Coles has managed to increase its annual dividend every single year. That proves its nature as a reliable ASX dividend stock in my view.
Last week, Coles was trading on a dividend yield of approximately 3.3%. That has always come with full franking credits attached too.
The post 2 ASX dividend stocks thst should be in every income portfolio appeared first on The Motley Fool Australia.
Should you invest $1,000 in Coles Group Limited right now?
Before you buy Coles Group Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Coles Group Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 Jan 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- 5 reasons to hold Telstra shares until 2030
- Buy, hold, sell: AGL, Coles, and PLS shares
- How I’d build a $1,000-a-month passive income from ASX shares
- Analysts are urging investors to buy these ASX dividend shares
- Top retirement shares for Australian investors to buy now
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. 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 Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Leave a Reply