My favourite ASX passive income shares for retirees

For retirees, a good ASX dividend share needs to offer more than a high headline yield.

I would want businesses with strong earnings, the capacity to continue paying dividends, and the potential for income to grow over time.

These are three ASX passive income shares I particularly like.

Coles Group Ltd (ASX: COL)

Coles would be one of my first choices because grocery spending tends to be relatively resilient.

Households may change what they buy when budgets become tighter, but supermarkets remain an essential part of everyday life. That gives Coles an earnings base that I think suits investors who depend on their portfolio for income.

There is also growth behind the story. Coles generated earnings per share (EPS) of 81.3 cents in FY26. Consensus forecasts point to 98.2 cents in FY27, $1.05 in FY28, and $1.15 in FY29.

I expect that profit growth will create room for dividends to rise as well.

For retirees, I think that combination of defensive demand and potentially rising income is compelling.

Telstra Group Ltd (ASX: TLS)

Telstra could be another quality share for an ASX passive income portfolio.

Mobile and internet services have become essential for households and businesses, giving Australia’s largest telecommunications company a substantial base of recurring demand.

I also think Telstra’s investment case has improved because management is aiming to grow the business rather than simply protect the dividend.

Under its Connected Future 30 strategy, Telstra is targeting mid-single-digit growth in cash earnings through to FY30 and has expressed an ambition to deliver a sustainable and growing dividend.

That is the direction I would want to see as a retiree.

I would still expect periods of share price volatility, but the underlying telecommunications demand gives me confidence in Telstra as a long-term income holding.

Commonwealth Bank of Australia (ASX: CBA)

CBA would round out my three picks.

The bank is not necessarily the highest-yielding option on the ASX, but I think the strength of the franchise counts for a lot when passive income reliability is important.

CBA has leading positions across deposits and home lending, a huge customer base, and one of Australia’s strongest digital banking platforms.

That has helped it consistently generate the profits needed to fund substantial fully-franked dividends.

CBA paid $5.05 per share in FY26. Consensus forecasts point to $5.15 in FY27 and $5.30 in FY28, alongside modest earnings growth over the same period.

The shares can trade at a premium valuation, and that is something I would consider before buying. But for retirees looking beyond the highest immediate yield, I think CBA’s financial strength and dividend record make it one of the ASX banks worth considering.

Foolish takeaway

For retirees looking for passive income, I think Coles, Telstra, and CBA are three strong options to consider.

Each has an established business, dependable cash flow, and the potential to keep growing dividends over time.

The post My favourite ASX passive income shares for retirees appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.