The Australian share market is a great place to generate passive income.
That's because a large number of ASX shares pay their shareholders dividends every six months (sometimes even every quarter). In time, this can lead to significant passive income from your investments.
But which ASX dividend shares could you buy now to supercharge your passive income? Let's look at three options:
The first share that could be a buy for passive income is HealthCo Healthcare & Wellness REIT.
It is a real estate investment trust with a mandate to invest in hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness property assets.
Bell Potter is a fan of the company, noting that it has "significant scope for growth with an estimated $218 billion addressable market." The broker has a buy rating and $1.50 price target on its shares.
As for income, it is expecting dividends of 8.4 cents per share for FY 2025 and then 8.7 cents per share in FY 2026. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.15, this will mean dividend yields of 7.3% and 7.55%, respectively.
Another ASX dividend share that could be a buy for passive income is Rural Funds. It is a property company that owns a portfolio of assets across a number of agricultural industries.
Thanks to its long leases, strong demand, and rental increases, Rural Funds appears well-placed to grow its dividend for some time to come.
It is partly for this reason that Bell Potter has put a buy rating and $2.50 price target on its shares.
The broker is forecasting dividends per share of 11.7 cents in FY 2025 and 12.2 cents in FY 2026. Based on the current Rural Funds share price of $1.88, this will mean yields of 6.2% and 6.5%, respectively.
Finally, this telco giant could be a great option for investors seeking passive income.
Telstra has been through a lot in the last decade but now looks well-placed for long term growth thanks largely to its key mobile business.
Goldman Sachs, which is expecting its growth to continue for the foreseeable future, is very positive on the company and has a buy rating and $4.35 price target on its shares.
As for income, the broker expects fully franked dividends of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on the current Telstra share price of $3.83, this represents dividend yields of 5% and 5.2%, respectively.
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