Why these ASX dividend shares could be buys for passive income

There are plenty of ASX dividend shares that could help investors build a passive income stream.

But which ones could be worth buying now?

Let's take a look at three shares that could offer attractive income in the coming years.

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to consider is Accent Group.

It is a major footwear and apparel retailer with brands including The Athlete's Foot, Platypus, Hype DC, and Stylerunner. It also has exposure to well-known international footwear brands such as Skechers.

Accent has been battling difficult retail conditions, which have weighed heavily on earnings and its share price.

However, the company has a strong position in the Australian footwear market and a large store network that could benefit when consumer spending improves.

As a result, income investors may want to consider buying Accent shares while sentiment is weak and potentially benefit from a recovery in earnings and dividends.

Morgans is expecting a fully franked 4.9 cents per share dividend in FY 2027. Based on its current share price of 69 cents, this equates to a dividend yield of 7.1%.

Cedar Woods Properties Ltd (ASX: CWP)

Another ASX dividend share that could be worth considering is Cedar Woods Properties.

The property developer has a portfolio of residential communities, apartments, townhouses, and commercial developments across Australia.

What makes Cedar Woods attractive is its exposure to the country's ongoing need for housing.

Population growth, housing shortages, and demand for well-located communities could support the company's development pipeline for many years.

Cedar Woods also has a long history of returning profits to shareholders through dividends.

The team at Bell Potter expects this trend to continue. It has forecast a fully franked FY 2027 dividend of 44 cents per share. Based on its current share price of $6.49, this would mean a forward dividend yield of approximately 6.8%.

Woolworths Group Ltd (ASX: WOW)

A final ASX dividend share to look at is Woolworths.

The supermarket giant offers a different type of income opportunity to the first two companies.

Its yield is lower, but its earnings are supported by one of the most defensive industries in the country.

Australians need to buy groceries regardless of what is happening with interest rates, employment, or consumer confidence. This gives Woolworths a relatively dependable revenue base.

For investors seeking passive income from a mature, cash-generating business, Woolworths could be a strong option.

Morgans is forecasting a fully franked dividend of $1.08 per share in FY 2027. This represents a dividend yield of approximately 2.8%.

The post Why these ASX dividend shares could be buys for passive income appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has positions in Accent Group and Woolworths Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group and Cedar Woods Properties. 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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