Creating a diversified income stream: Top ASX dividend shares to buy today according to analysts

Here is how you can create a growing stream of passive income with ASX shares.

| More on:
Four piles of coins, each getting higher, with trees on them.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Investors can generate passive income from the share market
  • Investing across sectors in reliable and growing companies could be a good idea
  • These ASX shares have grown their dividends materially over the last few years

Are you looking to build a diversified income stream that can provide steady returns over the long-term?

One way that investors can achieve this is by investing in high-quality dividend-paying ASX shares from across different sectors.

With that in mind, listed below are a couple of ASX dividend shares that have a strong track record of paying consistent dividends and have the potential to grow their payouts over time.

And the good news is that they also have the potential to provide meaningful share price upside from current levels according to analysts. Here's what you need to know about these shares that could provide a reliable and growing stream of passive income:

Dicker Data Ltd (ASX: DDR)

The first ASX dividend share that could be a top option right now for passive income seekers is Dicker Data.

It is one of the largest technology hardware, software, cloud, cybersecurity, access control and surveillance distributors in Australia and New Zealand.

Over the last decade, the company has been a quiet achiever going from a largely unknown small cap to a $1.5 billion member of the ASX 300 index.

Pleasingly for income investors, the company's dividends have grown along with its stature. For example, in FY 2023 and FY 2024, Morgan Stanley is forecasting fully franked dividends per share of 43.8 cents and 48.8 cents, respectively.

This is more than triple the 14 cents per share it paid in FY 2014 and will mean yields of 5.2% and 5.8%, respectively, based on the current Dicker Data share price of $8.40.

Morgan Stanley also sees scope for its shares to rise by almost 20%. It has an overweight rating and $10.00 price target on them.

Transurban Group (ASX: TCL)

Another ASX dividend share that could provide investors with a reliable and growing passive income stream is Transurban.

Thanks to the strong pricing power that this toll road operator has, together with its positive exposure to inflation, it could be a great long term option for investors.

Citi is positive on the company and is forecasting dividends per share of 58 cents in FY 2023, then 60 cents in FY 2024 and 65 cents per share in FY 2025. Based on the current Transurban share price of $14.60, this will mean yields of 4%, 4.1%, and 4.45%, respectively.

It is also worth highlighting that these dividends are up from 34 cents per share in FY 2014, which demonstrates just how far its payouts have come since then.

Citi also sees decent upside ahead for its shares with its buy rating and $16.00 price target.

Motley Fool contributor James Mickleboro 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 Dicker Data. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.
Dividend Investing

Want to bag the upcoming Macquarie dividend? You better hurry!

Here’s what you need to know.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

4 ASX All Ords shares with ex-dividend dates next week

Pay close attention to these dates.

Read more »

Two workers at an oil rig discuss operations.
Dividend Investing

This high-yielding ASX 200 dividend stock remains a top choice for passive income

I think this ASX 200 dividend gem will remain a top passive income stock for years to come.

Read more »

Person handing out $50 notes, symbolising ex-dividend date.
Dividend Investing

Buy these ASX dividend shares for 6%+ yields

Analysts expect these stocks to provide income investors with big yields in the coming years.

Read more »

Beautiful young couple enjoying in shopping, symbolising passive income.
Dividend Investing

2 high-yield Australian dividend shares for reliable passive income

When you're looking to generate passive income from the share market, you want reliability. No income investor wants to see…

Read more »

Happy female friends taking self portrait through mobile phone at pool's edge, symbolising passive income.
Dividend Investing

Looking for passive income? Try this ASX 200 blue chip

This stock's 4.66% fully franked yield is hard to ignore.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Bank Shares

Everything you need to know about the NAB dividend

NAB will soon be sending its next payout to investors.

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

2 high-yield ASX dividend shares for Australian retirees

Analysts are tipping big yields and big returns from these income stocks.

Read more »