ASX Stocks to Buy for Passive Income in 2026

Passive income stocks are gradually making a comeback as the recent market correction pushes people towards reliable companies that can do well in all situations. Recent pullback has driven dividend yields higher of many quality companies which creates a win-win situation for buyers. If the market rebounds, investors will capture the upside and even if does not, the dividends will make up for it anyway. As we step into 2026, standout options include Rural Funds Group (RFF), APA Group (APA), Woodside Energy (WDS), Endeavour Group (EDV), and Pepper Money (PPM). These businesses continue to show consistently growing earnings, solid cash flows and a clear focus on payout consistency. The latest quarterly and half-year updates below explain exactly why each one remains a strong contender for passive income focused portfolios.

Rural Funds Group (ASX: RFF)

reported a 9.2% increase in net property income during FY25 as it rose to $95.1 million, mainly due to additional rental income earned on TRG JV macadamia developments. 

Adjusted funds from operations (AFFO) increased 4.5% to 11.5 cents per unit (cpu) which was slightly ahead of the forecasted 11.4 cpu mainly driven by increase in net property income and net farming income. 

RFF paid four distributions during the year, which totalled 11.73 cents per unit, taking the current annual yield to 6.22%.
The company expects to generate AFFO of 11.7 cpu in FY26 and pay distributions of 11.73 to return to a payout ratio of 100%, which will lead to the payout ratio improving for three consecutive years. 

APA Group (ASX: APA)

completed construction and progressed multiple projects during FY25, including completion of the Port Hedland Solar and Battery project and early works in the Beetaloo Basin. 

APA had a strong year and reported EBITDA of $2 billion, an increase of 6.4% and towards the top end of guidance. Statutory NPAT was 8.4% higher than FY24. 

The company delivered more than two decades of uninterrupted distribution growth and paid out total dividends of 57.0 cents per security which translates to a current yield of 6.10% and is targeting 58.0 cents per security in FY26. 

Cost management remains the focus of the company and it is taking steps to simplify the business and become more cost-efficient and is aiming for a $50 million cost-out target for FY26.

Woodside Energy Group Limited (ASX: WDS)

delivered increased quarterly production in the quarter ended 30 September 2025, with 51 million barrels of oil equivalent produced. 

Sangomar and Australian assets demonstrated outstanding reliability, with Sangomar having generated $477 million in revenue for the quarter at 98.2% reliability and Pluto LNG demonstrated 100% reliability. 

The company declared a fully franked interim dividend of 53 US cents per share, which represents an 80% payout ratio of underlying NPAT and a current annualised yield of 6.34%. 

Customer demand for Woodside’s LNG remains strong as it entered into a sale and purchase agreement with PETRONAS and with BOTAS for long-term supply of LNG. 

Endeavour Group Limited (ASX: EDV)

reported a 4.1% growth in hotel sales in FY25 compared to the previous year, growing to $2.1 billion. There was good momentum in hospitality, as gaming, food, bars and accommodation all grew. 

Its group optimisation program endeavourGO, delivered a $75 million in savings in FY25 and a cumulative savings of $265 million since FY22. EDV also reduced net debt by $187 million during the year. 

The company paid dividends totalling 18.8 cents per share in FY25, representing a payout ratio of 79% and a current annual yield of 5.18%. 

EDV aims to deliver high single-digit EPS growth and EBIT growth per year from FY26 and maintain a dividend payout ratio of 70-75%.  

Pepper Money Limited (ASX: PPM)

has announced that a consortium with members including Pepper Money and KKR, will acquire the RAMS home loan portfolio, which comprises of approximately $21.4 billion in residential mortgages. 

The transaction aligns with the company’s strategy of growing its capital-light servicing business which will provide annuity-style earnings and diversification benefits. 

The company reported statutory NPAT of $47 million for the half year ended 30 June 2025 which is an increase of 2% compared to the prior corresponding period. 

PPM declared a fully franked Interim for FY25 of 6.4 cents per share which has taken the total dividends declared to 18.9 cents per share which amounts to current annual yield of 10.97%. 

Everyone loves passive income and these ASX dividend stocks are offering high yields helped by the recent correction in markets which makes them stand out as excellent opportunities for 2026.

(Source: Company Reports)