All the ASX shares I've ever bought have this one thing in common

Here's why I was drawn to my investments.

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The ASX shares that I've got in my portfolio all have something in common: they all pay passive income. I like receiving dividends, though that's not the only thing I look for.

It's understandable why plenty of investors are attracted to names like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Woodside Energy Group Ltd (ASX: WDS) – blue chips paying large, fully franked dividends.

But, I'm not looking for maximum passive income. I want to find investments that can deliver strong total returns, but they need to deliver some sort of annual passive income payment.

Why I love passive dividend income so much

I'm invested in a number of dividend-paying ASX shares such as Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Brickworks Limited (ASX: BKW), Duxton Water Ltd (ASX: D2O), Fortescue Metals Group Ltd (ASX: FMG), Altium Limited (ASX: ALU) and Rural Funds Group (ASX: RFF).

Thankfully I'm sitting on capital gains on each of those investments.

I like that all of these businesses pay dividends from their profit because it means I don't need to sell any of my shares to access some of the returns or profit.

I know myself – trying to think about when to sell would likely stress me out. I'd also probably feel regret if the sold shares went higher after I'd sold them. I want to feel relaxed and rewarded regarding my ASX share portfolio, not stressed and regretful.

I'd also hate needing to sell during a market decline at a discount price – I'd rather be buying than selling during a time like that. Receiving the cash flow of dividends means that each of my investments is sending me 'real' returns each year. I don't need to sell, pay brokerage fees or trigger any capital gains tax events.

I think that focusing on the dividend income means I can focus on the long-term and the profit, rather than worrying about what the share price is doing in the short-term (particularly when there are declines).

For the Australian companies that attach franking credits to their dividend payments, I like that the passive dividend income is boosted when it comes to the after-tax yield.

Finally, I like that dividend payments can provide fairly consistent returns every three/six/twelve months.

If I choose the right dividend-paying ASX shares and buy at a good price, I can benefit from both dividends and capital growth over the long term.

Foolish takeaway

For my own (and my family's) personality and mindset, I think I've settled on what works best. However, I also love looking at ASX growth share opportunities as part of my work – that's what's so great about the ASX share market, we can find opportunities in all parts of the market.

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Motley Fool contributor Tristan Harrison has positions in Altium, Brickworks, Duxton Water, Fortescue Metals Group, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Brickworks, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, Rural Funds 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.

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