The perfect ASX dividend shares to buy and hold forever

MotleyFool
2024-11-12

There are a lot of ASX dividend shares to choose from on the Australian share market, but which could be perfect options for a buy and hold investment?

Let's take a look at a couple that analysts appear to believe could tick a lot of boxes for long-term investments. They are as follows:

Coles Group Ltd (ASX: COL)

The first ASX dividend share that could be a great candidate for a long term investment is Coles.

It is of course one of Australia's leading retailers, with an extensive footprint of over 1,800 retail outlets nationally serving millions of customers every week.

This includes more than 840 supermarkets and a large liquor store network through the Liquorland, First Choice Liquor Market, and Vintage Cellars brands.

The team at Bell Potter is feeling positive about the retailer and sees plenty of value in its share price at current levels. Particularly given its positive earnings growth outlook. It said:

We see FY25e as a year of consolidation on a reported basis, however, we continue to see COL as providing an attractive earnings growth profile through to FY27e on an underlying basis.

The broker also expects some attractive dividend yields from its shares in the near term. It is forecasting fully franked dividends of 68 cents per share in FY 2025 and then 78 cents per share in FY 2026. Based on the current Coles share price of $17.74, this equates to dividend yields of approximately 3.8% and 4.4%, respectively.

Bell Potter recently put a buy rating and $20.50 price target on its shares.

Origin Energy Ltd (ASX: ORG)

Another ASX dividend share that could be a top long term option for income investors is Origin Energy. It is of course a leading provider of electricity, gas, LPG, solar and internet to homes and businesses across the country.

Goldman Sachs is positive on the company. The broker expects its "APLNG earnings diversification to support strong FCF & returns." It also highlights that its investment in Octopus has been very successful. It said:

Octopus' valuation has already increased 600% since ORG's initial investment in 2020, which we expect could continue to grow over 20% in FY25 as contracted Kraken accounts growth drives 30% EBITDA growth.

In respect to dividends, the broker is forecasting fully franked dividends per share of 46 cents in FY 2025 and then 48 cents in FY 2026. Based on its current share price of $9.90, this would mean dividend yields of 4.6% and 4.8%, respectively.

Goldman Sachs has a buy rating and $10.30 price target on its shares.

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