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Why buy and hold these ASX passive income shares

1 min read Opinion An argument, written to persuade. Rewritten in plain language

Dividend Investing

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  • Passive income is one of the reasons many investors turn to the ASX.
  • Flight Centre may not be the first company that comes to mind for passive income, but it has an interesting long-term case.
  • The dividend will probably be more cyclical than those of some defensive companies, if economic conditions weaken.
  • Lottery Corporation is another business suits an ASX buy-and-hold passive income strategy.
  • Amcor provides a different source of passive income.

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Headline as published: Why I'd buy and hold these ASX passive income shares

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Passive income is one of the reasons many investors turn to the ASX.

With that in mind, these four ASX passive income shares would be on my long-term shortlist.

Flight Centre may not be the first company that comes to mind for passive income, but it has an interesting long-term case.

The travel company has rebuilt strongly since the pandemic and once again has the capacity to return cash to shareholders.

The dividend will probably be more cyclical than those of some defensive companies, if economic conditions weaken.

For investors willing to accept some volatility, I would be happy to own Flight Centre for income and growth.

Coles is a much more defensive option. Australians need groceries regardless of what is happening in the economy, giving the supermarket giant a source of sales.

The company also has opportunities to grow through population increases, online shopping, and continued investment in its supply chain and automated distribution network.

Lottery Corporation is another business suits an ASX buy-and-hold passive income strategy.

Lottery tickets need little physical infrastructure compared with many other consumer businesses, and the company can generate cash from its established brands.

Amcor provides a different source of passive income.

Packaging is not an exciting industry, but that is not necessarily a problem for an income investment.

For me, that mix of income and the potential for earnings to grow over time is much more interesting than chasing yield.

Shortened to 1 minute of reading, this version reads 16.2 on the Niral Score.

You are reading our version, not theirs. This is The Motley Fool Australia's report shortened to its most important sentences, in plainer words, with verdicts and loaded words taken out. Plain description stays, and so do adjectives that carry a fact, such as "former" or "federal". The reporting, the facts and the quotations are theirs — quotations are never edited — and the indicators beside it measure this version. Hover or tap Adjectives to see every one left in the text.

How outlets headlined it

Each outlet's own headline. Struck through: the loaded words our version leaves out. Plainest first.

  • The Motley Fool Australia Buy, hold, sell: Netwealth, Tabcorp, Healius shares plain
  • The Motley Fool Australia South32, Cochlear, Westpac shares: Buy, hold, or sell? plain
  • The Motley Fool Australia WiseTech shares: 3 reasons to buy and 3 reasons to sell plain
  • The Motley Fool Australia Here are the top 10 ASX 200 shares today plain
  • The Motley Fool Australia Up 98%: Are CSL shares now a buy, hold or sell? plain
  • The Motley Fool Australia 3 for income: I'd buy these ASX shares for dividends today plain
  • The Motley Fool Australia 2 top ASX shares to buy and hold for the next decade plain
  • The Motley Fool Australia Down over 50%: 2 ASX shares to buy for global growth plain
  • The Motley Fool Australia Why I'd buy and hold these ASX passive income shares 1 change

How each outlet filed it

Outlet Niral ScoreAdjectivesSourcingSentimentHappiness
The Motley Fool Australiaas they published this story 25.9 33 0 -0.0 51.8
The Motley Fool Australia 15.9 13 0 -0.2 51.2
The Motley Fool Australia 16.8 22 33 0.8 60.6
The Motley Fool Australia 15.4 13 18 0.0 53.6
The Motley Fool Australia 14.6 15 2 -0.1 47.1
The Motley Fool Australia 11.9 8 42 0.3 56.8
The Motley Fool Australia 22.7 22 0 0.2 51.9
The Motley Fool Australia 20.6 22 14 1.1 67
The Motley Fool Australia 21.8 21 0 0.2 57.1
Mundane Readneutralized from The Motley Fool Australia 9.4 6 42 0.0 56.8

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The same event elsewhere

8 other outlets filed this story. The scoreboard above is what they did differently.