One of the main attractions of investing in stocks is how easy it is to receive passive income from ASX dividend shares without having to do any work.
Once we own the shares and have directed where we want the dividends to be paid, we can just watch the dividends roll into the bank account.
Some businesses on the ASX have been going for decades. Having strong and stable operations means they can reward shareholders with dividend payments regularly each year.
While dividends aren't guaranteed, I think the three ASX dividend shares I'm going to talk about are likely to keep paying good dividends for a very long time.
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Telstra Group Ltd (ASX: TLS)
Telstra is the largest telecommunications business in Australia, and it has been known for paying a decent dividend yield since the GFC.
I am confident Australia will continue to use telecommunications beyond the foreseeable future. Indeed, they may become even more integral.
The capabilities of 5G could mean that the technology may replace the fixed cables of the NBN as a household's preferred way to connect to the internet at some point. If it could win over households, this would be a very useful boost for Telstra's profit margin.
Telstra's profit outlook seems more positive these days as the telco works on lowering costs and increasing revenue, as well as diversifying its operations. Expectations of a higher profit have meant the ASX dividend share has started to increase its dividend.
According to Commsec, the grossed-up dividend yield in FY23 could be 5.8%.
Macquarie Group Ltd (ASX: MQG)
Macquarie is the most impressive bank on the ASX, in my opinion. It's an investment bank, not just a bank in the lending and savings accounts business.
It has a number of divisions, including asset management. This provides it with a consistent source of solid earnings. Macquarie also has a commodities and global markets (CGM) division which has been making a bucketload of money amid the volatility in energy markets over the last 12 months.
The ASX dividend share generates more than two-thirds of its earnings away from Australia and New Zealand. As such, it's a global business.
Its ability to invest and grow anywhere, across a number of financial segments, gives me confidence it can weather any downturn and perform in the long term. One example is its leading role in financing green energy developments.
According to Commsec, Macquarie could pay a grossed-up dividend yield of around 4% in FY23.
Metcash Ltd (ASX: MTS)
Metcash is a diversified business that has three segments. It supplies independent supermarkets, such as IGAs, around Australia. Metcash supplies a number of independent liquor retailers like Cellarbrations, The Bottle-O, IGA Liquor, Thirsty Camel, Duncans, and Porters Liquor.
The business also has a hardware division, which owns the brands Mitre 10, Home Timber & Hardware, and Total Tools.
COVID-19 seems to have changed the way some people shop, with more people preferring their local supermarkets and liking what they're seeing. The company's food revenue continues to grow, liquor is performing well, and hardware has started FY23 strongly.
With hardware now generating the largest part of the company's profit, I think the business has more growth potential.
The ASX dividend share has committed to a dividend payout ratio of 70% of underlying net profit after tax (NPAT).
According to Commsec, Metcash could pay an annual dividend of around 22 cents in FY23, translating into a grossed-up dividend yield of 7.6%.
