ASX dividend shares are my top way to create passive income because of how easy it is to invest and hold for the long-term while receiving dividends.

I love how we can build a portfolio piece by piece and create a river of dividends. The investments I’m going highlight offer investors a good dividend yield and I’m confident they can grow their payouts over time.

Let’s dive in with what I’d happily buy with $3,000.

Bailador Technology Investments Ltd (ASX: BTI)

I think the last 20 years have shown that technology is one of the best, if not the best, places to invest.

Software businesses are able to deliver great gross profit margins, strong bottom lines and they usually don’t have any physical limitations of growth compared to others needing to increase production, open a new store or new warehouse to grow further.

Bailador is a company that invests in private technology businesses whilst they’re still in a rapid growth phase. Its current portfolio includes businesses involved in digital healthcare, hotel management, financial advice and investment management, tours and activities, property investment, volunteer management, fitness and wellness, and so on.

The portfolio is growing at a rapid speed – Bailador’s portfolio company revenue growth was 47% in FY25, which bodes well for increasing the underlying value of those businesses over time.

The ASX dividend share aims to pay investors a dividend yield of 4% relative to the pre-tax net tangible assets (NTA). But, due to the fact the Bailador share price is at a 36% discount (at the time of writing) to the NTA, it has a dividend yield of 6.3%, or 9% including franking credits.

Future Generation Australia Ltd (ASX: FGX)

This business is a listed investment company (LIC) that invests a portfolio of ASX share-focused funds from various fund managers who work for free so that Future Generation Australia can donate 1% of net assets to youth charities each year.

There are no management fees or performance fees. With the investment/accounting profits the ASX dividend share makes, it’s paying a growing dividend that has grown every year for the past decade. Not many ASX businesses can claim to have done that.

This investment can provide Aussies with diversification thanks to the funds giving exposure to hundreds of underlying businesses.

Its latest announced dividends come to a grossed-up dividend yield of 7.7%.

WCM Quality Global Growth Fund (ASX: WCMQ)

This is an exchange-traded fund (ETF) targets a 5% dividend yield, balancing passive income and capital growth.

WCM is looking for global stocks it thinks have expanding competitive advantages (economic moats) and business cultures that help expand the competitive advantage.

With a portfolio of US and non-US shares, the fund is able to provide investors with pleasing exposure to a variety of opportunities around the world.

The strategy is clearly working because the fund has delivered average net returns of 15.9% per year since inception in August 2018. Past performance is not a guarantee of future returns, but I think it can continue to perform well. A rising net asset value (NAV) of the fund helps fund larger distributions.

The post 3 wonderful ASX dividend shares I’d buy with $3,000 right now appeared first on The Motley Fool Australia.

More reading

• Here’s how you could turn the stock market into a $1,000 monthly passive income machine
• Is this the perfect place to start investing in ASX shares with $500?
• Don’t want to rely on your wage? Build a second income with these ASX shares
• 2 ASX dividend shares with yields above 7%!
• $20,000 in excess savings? Here’s how to try and turn that into a second income in 2026

Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments and Future Generation Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments. The Motley Fool Australia has recommended Bailador Technology Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Silver is again stealing the spotlight across global markets on Wednesday.

At the time of writing, the price of silver has jumped more than 7%, pushing it to around US$111 per ounce, near record levels.

Earlier in the week, the white metal briefly touched a new high of US$117.69 per ounce.

Silver is now up more than 55% over the past month, making it one of the strongest-performing commodities anywhere right now.

Let’s unpack what is driving this remarkable rally.

Trade tensions, tariffs, and political instability are adding to the uncertainty

Recent moves by the Trump administration have added another layer of uncertainty to global markets.

On Tuesday, US President Donald Trump announced that tariffs on South Korean imports would be raised from 15% back to 25%. The move affects goods including autos, lumber and pharmaceuticals, and follows delays in ratifying a trade deal agreed between the two countries last year.

These tariff increases are part of a broader rise in global trade tensions. They come alongside fresh tariff threats involving other countries and regions, including parts of Europe.

That uncertainty is pushing investors toward traditional safe-haven assets. Gold has already surged to record highs, and silver is now following closely behind as investors look for protection from political and economic instability.

Silver still has room to run relative to gold

One technical measure many analysts watch closely is the gold to silver ratio. It compares how many ounces of silver are needed to buy one ounce of gold.

Although that ratio has fallen recently as silver has caught up to gold, it remains elevated compared to levels seen during previous precious metals bull markets. Some investors see that as a sign that silver still has room to run if the rally continues.

Silver has also now made new highs in US dollar terms. Many long-term bulls believe that, despite the sharp move already seen, the metal may still be in the early stages of a larger re-rating.

How can investors get exposure to silver?

There are 3 common ways investors can gain exposure to silver.

Buy physical silver

This means buying silver bars, coins or other forms of metal. It gives direct ownership and can act as a hedge against inflation and currency weakness. People should consider secure storage and insurance.

Invest in ASX silver mining companies

Shares in companies that produce or explore for silver can offer leveraged exposure to rising prices. That means the share prices could move more than the price of silver itself, but they also carry company and operational risks.

Buy the Global X Physical Silver Structured ETF (ASX: ETPMAG)

This ASX-listed ETF provides exposure to physical silver without the need to buy and store metal. It is an easy way for everyday investors to add silver to a portfolio in a liquid and cost-effective way.

Foolish Takeaway

Silver’s surge above US$111 per ounce reflects a powerful mix of safe-haven demand, tight physical supply, rising industrial use, and growing geopolitical uncertainty.

Recent tariff moves by the Trump administration have added extra fuel to the rally, reinforcing silver’s role as both a precious and industrial metal.

While volatility is likely after such a sharp run, the underlying forces supporting silver remain strong.

The post Silver is on fire. Why prices just jumped 7% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) gold stock West African Resources Ltd (ASX: WAF) is charging higher today.

West African Resources shares closed yesterday trading for $3.71. In early morning trade on Wednesday, shares are changing hands for $3.81 apiece, up 2.7%.

For some context, the ASX 200 is up 0.3% at this same time.

With today’s intraday boost factored in, West African Resources shares are now up a whopping 138.1% over 12 months. And if the miner can hold onto these gains until close, today will mark a new record high for the stock.

Like gold miners the world over, the ASX 200 gold stock has enjoyed brisk tailwinds from the surging gold price. Gold leapt another 3.4% overnight to be trading for US$5,180 per ounce. This sees the gold price up 89% since this time last year.

Here’s what else is boosting the West African Resources share price today.

ASX 200 gold stock jumps to record high on results

ASX investors are bidding up West African shares today following the release of the miner’s December quarter results.

With December’s results in, the ASX 200 gold stock confirmed that it met its full calendar year 2025 cost and gold production guidance, marking the fifth consecutive year the miner has met its full-year guidance.

Highlights from the December quarter include gold production of 112,019 ounces at an all-in sustaining cost (AISC) of US$1,561 per ounce.

West African Resources sold 105,995 ounces of gold over the three months, receiving an average price of US$4,058 per ounce. Importantly, in this rising gold price environment, the ASX 200 gold stock remains fully unhedged.

In other key financial metrics, fourth-quarter cash flow from operating activities came in at AU$389 million, after AU$48 million in income tax payments.

As at 31 December, West African had a cash balance of AU$584 million along with AU$177 million of unsold gold bullion.

What did management say?

Commenting on the quarterly results sending the ASX 200 gold stock into new record territory today, West African CEO Richard Hyde said:

For the full year 2025, Sanbrado produced 205,228 ounces of gold at a site sustaining cost of US$1,348 per ounce, achieving annual production guidance of 190,000 to 210,000 ounces at a site sustaining cost of under US$1,350 per ounce.

Considering the strong rise in the gold price during 2025 significantly increased royalty costs, this was another outstanding annual result for Sanbrado and the fifth consecutive year of either meeting or beating guidance…

WAF group produced 300,383 ounces of gold in 2025 and achieved annual guidance of 290,000 to 360,000 ounces.

West African Resources will release its 2026 annual production guidance and outline its capital management strategy later in the first quarter of 2026.

The post Guess which ASX 200 gold stock is surging to an all-time high on strong results appeared first on The Motley Fool Australia.

More reading

• West African Resources posts strong December quarter cash inflows
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Guess which ASX 200 gold stock is charging to a record high on stellar update

Motley Fool contributor Bernd Struben 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) stock Wesfarmers Ltd (ASX: WES) is a strong contender for providing investors with good passive income. It’d be one of the ASX blue-chip shares I’d look at for dividends.

The owner of Bunnings, Kmart, Officeworks, Priceline, and more has a stated goal to increase its payouts to shareholders. On the company’s website, the business says:

With a focus on generating strong cash flows and maintaining balance sheet strength, the group aims to deliver satisfactory returns to shareholders through improving returns on invested capital.

As well as share price appreciation, Wesfarmers seeks to grow dividends over time commensurate with performance in earnings and cash flow.

Dependent upon circumstances, capital management decisions may also be taken from time to time where this activity is in shareholders’ interests.

With that intention in mind, I think it’s a strong opportunity for income (and total) returns. Let’s look at how it could deliver $1,000 of annual passive income in 2026 for an investor.

Passive income target for the ASX 200 stock

Wesfarmers has been steadily growing its dividend payout each year since the onset of the COVID-19 pandemic. Not many of the ASX 200’s blue-chip stocks have managed to deliver that level of consistent performance for investors.

The current forecast on CommSec suggests the business could pay an annual dividend per share of $2.14 in FY26. To receive $1,000 in cash dividends over a year, an investor would need to own 468 Wesfarmers shares.

But if we include the income bonus from franking credits as part of the overall annual passive income, an investor would only need to own 328 Wesfarmers shares.

How likely is dividend growth for owners of Wesfarmers shares?

While the business isn’t guaranteed to deliver growth, analysts are projecting a sizeable increase for the company in FY27.

According to CommSec’s projection, the company is forecast to pay an annual dividend per share of $2.33 in FY27, representing a year-over-year increase of approximately 9%.

Pleasingly, the projections suggest the ASX 200 stock’s earnings per share (EPS) will rise to around $2.75 in FY27, which would help fund a dividend payout ratio of 84.8%.

I think it’s quite likely the company will deliver rising earnings in FY27, driven by the strength and ongoing sales growth of its Kmart and Bunnings businesses, which have very high returns on capital (ROC).

Plus, with the rapid rise of the lithium price in recent months, the earnings outlook for the lithium business is very promising. The project’s development cash costs will soon stop, and the company can start generating good earnings, which seems like they will be much stronger than the market was expecting this time last year.

The post I’d buy 328 shares of this ASX 200 stock to aim for $1,000 a year appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Bank of Queensland Ltd (ASX: BOQ) share price is in focus today after the company announced a transition in top leadership, with seasoned executive Rod Finch set to step in as CEO and Managing Director from 1 March 2026. Current CEO Patrick Allaway will retire at the end of February, with BOQ highlighting leadership continuity as it pushes ahead with its strategic transformation.

What did Bank of Queensland report?

• Rod Finch appointed as Chief Executive Officer and Managing Director effective 1 March 2026
• Patrick Allaway to retire as CEO and MD effective 28 February 2026, following a three-year executive tenure
• Finch’s remuneration: $1.5 million fixed salary, plus potential short- and long-term variable incentives
• Allaway to receive accrued entitlements and existing equity awards, with details subject to performance criteria
• Board highlighted progress in digital banking and operational resilience under Allaway’s leadership

What else do investors need to know?

Rod Finch brings over two decades of financial services experience, having led major transformation roles at BOQ, AMP, Lloyds, and Westpac. His background covers strategy, digital transformation, and customer experience across Australian and UK banks.

The board noted that Finch has already been instrumental in BOQ’s digital transformation and risk management programs. The company emphasised that this appointment provides valuable leadership continuity at a critical period for BOQ.

Patrick Allaway will remain available to BOQ until August 2026 to aid in the transition, and his outstanding equity will vest according to performance and plan rules. No changes were announced to BOQ’s overarching business strategy.

What did Bank of Queensland management say?

Rod Finch, incoming CEO, said:

I am honoured to be appointed CEO and grateful for the trust the Board has placed in me. I look forward to leading the organisation, building on the strategic transformation initiated by Patrick to improve outcomes for our customers, shareholders and the communities we serve.

What’s next for Bank of Queensland?

With its new CEO, BOQ aims to maintain momentum on its strategy to deliver a simpler, more specialist bank. The focus will remain on improving customer experience, digital services, and operational efficiency.

Finch is expected to build on the foundation laid by Allaway, continuing efforts in growth, digital uplift, and risk management. Investors can watch for updates as BOQ advances into the next phase of its transformation journey.

Bank of Queensland share price snapshot

Over the past 12 months, Bank of Queensland shares have remained flat, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Bank of Queensland names new CEO as leadership transition takes shape appeared first on The Motley Fool Australia.

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• Greatland Resources delivers strong Q4 cash flow and mine expansion progress

Motley Fool contributor Laura Stewart 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Shares in Greatland Resources Ltd (ASX: GGP) were virtually unmoved on Wednesday morning after the company said it had built its cash pile to $948 million on a strong quarter of gold production.

Greatland also said its full-year production was likely to come in near the upper end of guidance of 260,000-310,000 ounces of gold.

The company said in a statement to the ASX that it had produced 86,273 ounces of gold during the December quarter, up 6.7% on the previous quarter, at an all-in sustaining cost of $2196 per ounce.

The company also produced 3528 tonnes of copper during the quarter.

Strong cash build

Cash flow from operations came in at $406 million, and the company had a closing cash balance of $948 million at December 30, up from $750 million at the end of the September quarter.

Greatland Managing Director Shaun Day said it was a solid result.

We are pleased to have delivered another strong operational performance in the December quarter, with gold production of 86,273 ounces at an AISC of $2,196 per ounce. Key drivers included continued growth in open pit ore mined (a 32% increase in volume of mill feed mined) and maintained high gold recovery of 88.4%, continuing the strong trend from last quarter. “Based on the first half performance, we currently expect full-year production to trend towards the upper end of the guidance range of 260,000 – 310,000 ounces, and full-year AISC towards the lower end of the guidance range of $2,400 – $2,800 per ounce.

Mr Day said the company had “full upside” to the gold price rise during the quarter, and the company “achieved an average realised price of over $6,300 per ounce”.

He added that the company had now been operating the Telfer mine in Western Australia for 12 months, during which “we produced over 335,000 ounces of gold and 14,000 tonnes of copper, generated ~$1.3 billion cash flow from operations, and built our net cash by ~$800 million”.

Mr Day said regarding the company’s other major asset, the Havieron project:

An important milestone was achieved during the quarter with the completion and release of the results of the Havieron Feasibility Study which confirmed the pathway to a world-class, long-life, lowest quartile cost Australian gold-copper mine, leveraging existing Telfer infrastructure. Havieron’s development is expected to be fully funded from cash together with a $500 million binding debt commitment with Tier-1 banks.

Greatland shares were 0.3% lower on Wednesday morning at $13.93.

The post Which gold producer has built a cash pile of almost $1 billion? appeared first on The Motley Fool Australia.

More reading

• Greatland Resources delivers strong Q4 cash flow and mine expansion progress
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• Greatland Resources posts record drilling and grades at Telfer
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Cameron England 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woodside Energy Group Ltd (ASX: WDS) shares are pushing higher on Wednesday morning.

At the time of writing, the energy giant’s shares are up 2% to $24.85.

This follows the release of the company’s fourth quarter and full-year update before the market open.

Woodside shares higher on update

Woodside had a reasonably tough finish to the year, with quarterly production down 4% quarter on quarter to 48.9 MMboe. This reflects seasonal weather impacts and lower Australian east-coast demand.

However, this couldn’t stop the company from breaking records across the 12 months. Woodside reported record full-year production of 198.8 MMboe, which was ahead of its guidance for the year.

A key driver of this was its strong oil asset performance. Management notes that it delivered 99.2% reliability at Sangomar and 98% reliability at Shenzi. In addition, in the fourth quarter it achieved a second consecutive quarter of 100% reliability at Pluto LNG and 99.8% reliability at the North West Shelf Project.

During the fourth quarter, Woodside recorded an average realised quarterly price of $57 per barrel. This was down 5% from the third quarter, reflecting lower oil-linked and gas pricing.

For FY 2025, its average realised price was $60 per barrel, down 5% from $63 per barrel a year earlier.

Woodside’s unit production costs came in at $7.80 per barrel in FY 2025. This was in the middle of its guidance range of $7.60 to $8.10 per barrel.

Management commentary

Woodside’s acting CEO, Liz Westcott, was pleased with the company’s performance during FY 2025. She said:

We achieved record annual production of 198.8 million barrels of oil equivalent in 2025. This performance was driven by sustained plateau production at Sangomar through late October and Pluto LNG operating at 100% reliability for the second half of the year.

Westcott spoke positively about the future thanks to new operations coming online. She adds:

In recent days we marked a special milestone for the Scarborough Energy Project with the safe arrival of the floating production unit at the field and commencement of hook-up activities. The project was 94% complete at the end of the year and remains on budget and on target for first LNG cargo in Q4 2026.

In late December first production was achieved at Beaumont New Ammonia. Final project commissioning will continue through early 2026 ahead of project completion and Woodside assuming operational control. Production will commence with conventional ammonia with lower-carbon ammonia planned for 2H 2026.

Though, lower production is expected over the course of 2026 due to planned down time at Pluto. She said:

Our 2026 volume guidance of 172 – 186 MMboe reflects planned down time at Pluto as we prepare the facility to begin processing Scarborough gas and for first LNG cargo in Q4 2026.

The post Woodside shares storm higher on record production appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX Ltd (ASX: ASX) share price is in focus today after the company reported unaudited 1H26 results showing operating revenue up 11.2% to $602.8 million and statutory NPAT climbing 8.3% to $263.6 million.

What did ASX Ltd report?

• Operating revenue of $602.8 million, up 11.2% on the prior corresponding period (pcp)
• Statutory net profit after tax (NPAT) of $263.6 million, up 8.3%
• Underlying NPAT of $263.6 million, up 3.9%
• Total expenses (excluding ASIC Inquiry costs) of $247.0 million, up 12.1%
• Total expenses (including ASIC Inquiry costs) of $264.3 million, up 20%
• Underlying return on equity of 13.5%, flat on pcp

What else do investors need to know?

ASX has updated its FY26 total expense growth guidance. Excluding ASIC Inquiry costs, FY26 expense growth is now forecast between 13% and 15%; including these costs, growth is expected between 20% and 23%. This update is driven by heavier investment in technology upgrades and risk management, as well as higher legal costs.

The company continues to develop its Commitments plan in response to the ASIC Inquiry Panel’s interim report. The plan details strategic actions—including a reset of the Accelerate Program and steps to improve board independence for key facilities.

Stronger trading volumes, especially in cash markets and interest rate futures, contributed to ASX’s higher revenues in the half.

What did ASX Ltd management say?

ASX Ltd CEO and Managing Director Helen Lofthouse said:

Since announcing our five-year strategy in mid-2023, we have been making significant investments in ASX to modernise our technology and secure our pathway to long-term sustainable growth.

The ASIC Inquiry Panel’s interim report underscores an even greater urgency to the transformation we are pursuing.

Alongside the reset of the Accelerate Program and the measures to enhance the independence of the clearing and settlement facilities, we have been reviewing key areas of our strategic investment to support how we address the spirit of the Inquiry’s findings.
This has underpinned our forecasting activity and contributed to the expense update we’ve provided today. Central in our assessment has been ASX’s role as an operator of critical market infrastructure that must perform to a very high standard, always striving for excellence.

Our unaudited results show ASX has experienced a period of strong cash market trading activity and demand for interest rate futures, and we felt it was important to release these additional figures to allow a fuller picture to be considered when providing today’s update to expense guidance.

What’s next for ASX Ltd?

ASX plans to provide further details at its 1H26 results announcement scheduled for 12 February 2026. The company is focused on delivering on its Commitments plan, investing to modernise its platforms, and addressing the findings of the ASIC Inquiry.

Investors can also expect FY27 expense growth guidance to be released at ASX’s June 2026 Investor Forum. The company’s medium-term return-on-equity target range has also been adjusted slightly lower in response to updated capital requirements from regulators.

View Original Announcement

The post ASX Ltd 1H26 earnings: revenue rises, expenses guidance upgraded appeared first on The Motley Fool Australia.

More reading

• Guess which ASX 200 gold stock is surging to an all-time high on strong results
• I’d buy 328 shares of this ASX 200 stock to aim for $1,000 a year
• Bank of Queensland names new CEO as leadership transition takes shape
• Which gold producer has built a cash pile of almost $1 billion?
• Woodside shares storm higher on record production

Motley Fool contributor Laura Stewart 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Fortunately for income investors, there are a lot of ASX dividend stocks to choose from on the local market.

To narrow things down, let’s take a look at two that analysts believe are top buys right now. They are as follows:

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans thinks that travel agent giant Flight Centre could be a top ASX dividend stock to buy now.

The broker believes it is worth sticking with the company during this current period of short term uncertainty. That’s because when operating conditions finally improve, it is expecting Flight Centre’s earnings to rebound materially. It explains:

FLT’s FY25 result was broadly in line with its recent update. Corporate was weaker than expected while Leisure and Other were stronger. FLT’s guidance for a flat 1H26 was stronger than we expected however it was weaker than consensus. Earnings growth is expected to accelerate in the 2H26 from an improvement in macro-economic conditions and internal business improvement initiatives. We have made minor upgrades to our forecasts.

We are buyers of FLT during this period of short-term uncertainty and share price weakness because when operating conditions ultimately improve, both its earnings and share price leverage to the upside will be material.

As for income, Morgans is forecasting fully franked dividends of 52 cents per share in FY 2026 and then 61 cents per share in FY 2027. Based on the current Flight Centre share price of $15.46, this would mean dividend yields of 3.4% and 3.9%, respectively.

The broker currently has a buy rating and $18.38 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend stock that could be a top buy according to analysts is Universal Store.

It is a leading youth focused apparel, footwear, and accessories retailer with around 85 stores under its flagship Universal Store brand. In addition, it is growing its store network with stand-alone formats for its private label brands Perfect Stranger and Thrills stores.

The team at Bell Potter is bullish on the company’s outlook and feels that the market is undervaluing its shares. It explains:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution.

While catalysts associated with further interest rate cuts for Australia in CY25 are not imminent post the third rate cut in August, we continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

Bell Potter believes this leaves the company well-placed to pay fully franked dividends of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.35, this would mean dividend yields of 4.5% and 5%, respectively.

The broker currently has a buy rating and $10.50 price target on its shares.

The post Why analysts are recommending these ASX dividend stocks to their clients appeared first on The Motley Fool Australia.

More reading

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• Why I would buy BHP, Xero, and Flight Centre shares today

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 recommended Flight Centre Travel Group and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Term deposits at Australian banks are some of the safest places to put money. In fact, some banks still offer attractive deals, with a solid interest rate of more than 4%. However, S&P/ASX 200 Index (ASX: XJO) shares appeal to me more.

While term deposits protect against risks, they don’t have any potential to deliver growth either. There’s no capital growth or passive income growth potential.

The two businesses I’m about to highlight have given investors pleasing passive income growth over the last few years, and I’m expecting more over the long-term.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the first ASX 200 share I’d buy rather than a term deposit.

The investment house has been the most reliable ASX dividend share over the last three decades – it has grown its payout every year since 1998. That suggests a shareholder could decide to spend all of the payment each year and still likely see a larger payout in the following year. Aside from interest rate changes (both up and down), term deposit holders would be left with the same interest payments if they spent all of their interest income each year.

Perhaps even more impressively, the company has paid a dividend every year for 120 years since it listed. Those payments flowed through world wars, global pandemics and recessions. That’s a compelling history of passive income.

How has it been so reliable? The business pays its dividend out of the cash flow it receives from its investment portfolio each year. Soul Patts typically pays out a majority of this cash flow each year which comes from defensive investments, ensuring a higher dividend payment for Soul Patts shareholders than last year.

The ASX 200 share regularly puts its excess cash into new investments, expanding the portfolio, unlocking more growth avenues and diversifying its investment base further.

I like the direction the business has been building its portfolio, in areas such as industrial properties, swimming schools and agriculture. I think those areas have significant expansion potential.

I’m expecting the business to grow its payout to at least $1.08 per share in FY26. That would be a grossed-up dividend yield of at least 4%, including franking credits, at the time of writing.

Telstra Group Ltd (ASX: TLS)

Telstra is another ASX 200 share that I think has a good future for dividends and growth.

There are few businesses that offer as important a service to households and businesses as Telstra. An internet connection may be needed for activities like work, education, entertainment and connecting with others.

The company has the most mobile subscribers in Australia and a number of other advantages. It has the largest mobile network, with coverage of 3 million square kilometres and 99.7% of the population. Telstra also boasts that it has Australia’s largest 5G network with 95% population coverage.

But, Telstra isn’t waiting for its rivals to catch up – it’s investing another $800 million in its mobile network over the next four years to extend its leadership and deliver an advanced 5G that is faster, more reliable and more efficient than 5G today.

By having the best network, it can charge more than rivals because of the quality and reliability, allowing it to earn a better margin from its network and grow profit faster.

Thanks to a growing subscriber base and strengthening margins, I believe the ASX 200 share can continue increasing its payout, as it has done in the last few financial years.

I’m expecting Telstra to pay an annual dividend per share of 20 cents in FY26, translating into a grossed-up dividend yield of 6%, including franking credits.

The post Forget term deposits! I’d buy these two ASX 200 shares instead appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Telstra Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.