I'm always on the lookout for the best ASX dividend shares to potentially add to my share portfolio.
There are many reasons why receiving passive dividend income is so beneficial to building wealth. These include receiving money from an investment, of course. But the tax-effective income that franked dividends provide can also make a huge difference over a lifetime of investing.
So today, let's discuss two ASX dividend shares that are projected to offer handsome dividend yields to investors in the 2025 financial year and beyond.
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2 ASX dividend shares that could offer handsome yields in FY2025
Telstra Group Ltd (ASX: TLS)
Telstra is an ASX 200 dividend share that most people need little introduction to. This blue-chip stock is the largest provider of telecommunication services (both mobile and fixed-line) in the country and has been for decades.
Thanks to this market dominance, Telstra has long been an income heavyweight on the ASX. It currently trades on a dividend yield of roughly 4.5%, which usually comes with full franking credits attached as well.
Earlier this month, Telstra announced a dividend pay rise with its soon-to-be-paid final dividend of 9 cents per share. But ASX broker Goldman Sachs predicts that the pay rises will keep on coming. As my Fool colleague James went through this week, Goldman is pencilling in a total of 19 cents per share in dividend income over FY2025, rising to 20 cents in FY2026 and 21 cents in FY2027.
Of course, that is not guaranteed. But if it does turn out to be the case, Telstra shares would trade on an FY2025 forward yield of 4.71%.
Coles Group Ltd (ASX: COL)
Next, we have another ASX 200 dividend share that most investors (and Australians ) are fairly familiar with. Coles Group runs the eponymous network of supermarket grocery stores that dot the country. Coles holds the second-largest market share in its industry, below only that of its arch-rival Woolworths Group Ltd (ASX: WOW).
Like telecommunications, groceries tend to be a highly stable business, resilient to all kinds of economic maladies, whether that be inflation or a recession.
This arguably makes Coles a great dividend stock to hold if income is an investor's priority. We haven't yet heard from Coles about its final dividend for 2024 (that will come next week). However, Coles has a great history of delivering consistent dividend pay increases.
Today, this ASX dividend share trades on a yield of approximately 3.57%, which typically comes with full franking credits, too.
As we also discussed this week, though, another broker is predicting that this recent streak of dividend pay rises will continue.
UBS predicts that Coles will fund 70 cents per share in fully franked dividends for FY2024, rising to a chunky 74 cents over FY2025. If the broker is on the money here, it would mean Coles would have a forward yield of 4% at current pricing.
