When I think about passive income from the share market, I’m looking for reliability, durability, and the potential for income to grow over time.
Right now, these are the ASX passive income picks I would feel comfortable owning for the long term.
Transurban Group (ASX: TCL)
For me, Transurban is one of the closest things the ASX has to infrastructure-style income.
It owns and operates toll roads across major cities where traffic demand is driven by population growth and congestion, not economic optimism. Many of its concessions are long-dated, and tolls often have built-in escalation mechanisms.
That matters. It gives me more visibility over cash flows than many other income stocks. While distributions can vary depending on investment cycles, I see Transurban as a core passive income holding with the potential for steady distribution growth over time.
Telstra Group Ltd (ASX: TLS)
Telstra is not a high-growth tech stock. That’s exactly why I like it in an income portfolio.
Telecommunications is essential infrastructure in a modern economy. Mobile connectivity, broadband, and data usage are not optional for households or businesses. Telstra’s scale and network advantage provide a level of resilience that smaller players struggle to match.
The company has returned to a more consistent dividend footing in recent years, and for income-focused investors, that stability is important. I see Telstra as a reliable cash generator that can anchor a passive income strategy.
Woolworths Group Ltd (ASX: WOW)
Woolworths may not have the highest dividend yield on the market, but I don’t think it needs to.
Groceries are non-discretionary. Even when conditions tighten, people still need to eat. That gives Woolworths a defensive quality that I value in an income portfolio.
After a tougher operating period in FY25, expectations have reset and earnings are forecast to recover. If that plays out, dividend growth could follow. For me, this is about combining defensive earnings with the potential for income to increase over time, not just clipping a static yield.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
The VHY ETF would round out my passive income portfolio.
This ETF tracks an index of Australian shares with higher forecast dividend yields. It includes familiar large-cap names such as BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), while applying diversification rules to avoid overconcentration.
With a dividend yield above 4%, it offers an easy way to gain exposure to a basket of income-generating businesses in one trade. I like it as a complement to individual holdings like Transurban, Telstra, and Woolworths.
Foolish takeaway
Passive income, in my view, is about building a portfolio that can pay you year after year without constant tinkering.
Transurban, Telstra, Woolworths, and the Vanguard Australian Shares High Yield ETF are all picks I’d be comfortable leaning on for long-term income. They may not be the most exciting stocks on the ASX, but when it comes to dependable cash flow, that’s what I want.
The post These are my top ASX passive income picks appeared first on The Motley Fool Australia.
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More reading
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- The ASX 200 shares I’d be comfortable holding in an SMSF
- Are these the best blue-chip ASX shares money can buy?
Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and 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, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.