Give the gift that keeps on giving: 7 ASX dividend shares I'd buy for a loved one this Christmas

Looking for a gift that literally keeps on giving this Christmas?

a Christmas present wrapped in one hundred dollar notes and finished with a big red bow

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

Call me old-fashioned, but I think buying your loved ones an ASX dividend share or two is one of the best gifts you can give at Christmas time. Far from the risk of ending up in a landfill in three months' time, quality ASX dividend shares are literally gifts that keep on giving, providing a stream of passive income (hopefully) for the rest of your days.

But with so many ASX dividend shares to choose from on the share market, picking the right ones can be an offputting task. So today, let's discuss not one, not two, but seven dividend stocks that I think would make for a perfect Christmas stocking stuffer in 2023.

7 ASX dividend shares that would make perfect Christmas presents in 2023

Telstra Group Ltd (ASX: TLS)

We all know Telstra. This ASX 200 telco is the largest telecommunications provider in the country and has formidable market dominance in both fixed-line and mobile services.

I like Telstra as a dividend stock for its defensive earnings base, and reputation as offering the best mobile network in Australia. The latter ensures that many customers simply cannot switch to a competitor. The former gives the Telstra dividend enormous stability.

For a fully-franked yield of over 4.4% today, you could do worse.

Coles Group Ltd (ASX: COL)

Coles is probably going to be a frequent destination for many readers over the coming fortnight. As the second-largest grocer in the country, this company is also a great place to look for a defensive dividend. We all need to eat and drink, and as long as Coles is one of the cheapest places to get life's essentials, its business will be strong.

Why not get some of that Christmas spending back from the Coles dividend for a loved one in 2024? The company offers a fully-franked yield of 4.15% today.

Transurban Group (ASX: TCL)

If, like many Australians at Christmas, you find yourself driving all over a capital city visiting different relatives, you'll probably be employing the services of toll-road operator Transurban. This company owns almost every toll road in Sydney, as well as several across Melbourne and Brisbane.

This dominance, plus Transurban's contracts which usually allow inflation-linked quarterly toll rises, make this company a cash flow machine and a reliable dividend payer. You can buy Transurban shares today with a trailing dividend yield of 4.35%.

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

Soul Patts is one of my favourite ASX dividend shares on the market. This investment house manages a huge portfolio of assets on behalf of its investors. It has been able to do this with exceptional results, consistently delivering market-crushing returns over the past two decades.

Soul Patts also has the distinction of being the only ASX dividend share that has increased its payouts every single year for 23 years. Now that's a gift worth giving.

Soul Patts shares offer a fully-franked dividend yield of 2.65% at present.

Lottery Corp Ltd (ASX: TLC)

Lottery Corp is a dividend share I'd personally love to own, so I'd be overjoyed if it appeared in my stocking this month.

This company owns exclusive licenses to run lotteries and Keno services in almost all states and territories. Australians tend to buy lottery tickets and play Keno in both good economic times and bad. That makes Lottery Corp an exceptionally reliable dividend stock.

Today, you can nab Lottery Corp shares at a fully-franked dividend yield of 2.98%.

National Australia Bank Ltd (ASX: NAB)

We can't have a dividend wish list without at least one ASX bank share. And my pick of the bunch at the moment is NAB. I view NAB as one of the most well-run banks on the ASX. It may not have the size and scale of Commonwealth Bank of Australia (ASX: CBA).

But it makes up for that with a much higher dividend yield. Today, NAB shares come with a fully-franked trailing yield of 5.64%. That's even better than a NAB term deposit.

Vanguard Australian Shares Index ETF (ASX: VAS)

Last but not least, we have an exchange-traded fund (ETF) from Vanguard to conclude with. This is a unique investment on this list because rather than a single company, it represents an investment in 300 different ones. Specifically, the 300 largest shares on the ASX.

This Vanguard ETF holds all of the other shares I've mentioned today within its portfolio, as well as probably any other ASX company you can think of. This gives this investment some attractive qualities, such as massive diversification, and a 'bottom-drawer' nature that allows you to set it and forget it.

VAS units pay out dividend distributions every quarter and currently trade on a trailing yield of 3.88%.

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank, Telstra Group, Vanguard Australian Shares Index ETF, 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 Lottery, Transurban Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Coles Group, 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.

More on Dividend Investing

A couple makes silly chip moustache faces and take a selfie on their phone.
Dividend Investing

2 ASX dividend stocks to buy for immediate passive income

I think these two stocks are some of the ASX's best bets for income right now.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
Dividend Investing

These buy-rated ASX dividend stocks offer 4%, 5%, and 8% yields

Let's see which stocks brokers have named as buys for income investors.

Read more »

executive in shirt and tie holding chin in hand looking disappointed because of slashed dividend payouts
Bank Shares

Is a dividend cut coming for ANZ shares?

ANZ's high dividend yield might not last...

Read more »

Woman looking at prices for televisions in an electronics store.
Dividend Investing

3 ASX dividend shares with surprisingly large yields today

These stocks have yields that might shock you.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

Brokers say these ASX dividend shares are top buys

These shares have been given the thumbs up by analysts.

Read more »

A couple lying down and laughing, symbolising passive income.
Dividend Investing

I'd buy 9,600 shares of this ASX 200 stock to aim for $200 a month of passive income

Want regular income? This could be a great stock to buy.

Read more »

Happy young couple saving money in piggy bank.
Dividend Investing

Buy these strong ASX dividend stocks for passive income

Brokers rate these shares as buys for passive income.

Read more »

A man thinks very carefully about his money and investments.
Dividend Investing

Buy Fortescue and these fantastic ASX dividend shares with $5,000

These shares have been named by brokers as buys for income investors. Let's see what they offer.

Read more »