With interest rates now significantly lower in Australia and the US than at the start of the year, it's definitely worth looking at star ASX dividend income stocks that can deliver strong passive income in 2026 and beyond.
There are many changes happening in the world, which can present compelling opportunities for some companies and pose risks for others.
I'm certainly keeping my eye out for opportunities, but I also believe that investing in resilient and steady ASX dividend shares could be a smart way to play the current environment, particularly with numerous tech businesses trading at high valuations if they're related to AI.
I'm optimistic the ASX dividend income stocks below can have another solid year with both dividend income and an increase in underlying value.
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Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
I've chosen Soul Patts to be one of the key positions in my portfolio because of its ability to perform in all economic conditions and its long-term track record.
The business has grown its annual dividend every year since 1998 and it has also paid a dividend every year in the last 120 years, including through world wars, global pandemics, economic meltdowns and so on.
It has managed to deliver this consistent record by being invested in various defensive industries. The ASX dividend share started off as a pharmacy business but it has since diversified into numerous areas such as building products, industrial property, resources, telecommunications, swimming schools, swimming schools, credit and so on.
I expect its dividend growth to continue in FY26 (and beyond), additional investments for the portfolio and the ASX dividend income stock can capitalise on any market sell-off by making beaten-up buys if opportunities open up.
APA Group (ASX: APA)
The other defensive business I want to highlight is energy infrastructure giant APA.
It owns a vast gas pipeline network across Australia, taking energy from sources of supply to where it's needed.
I don't think energy demand is likely to decline in 2026 or in the next few years. Indeed, energy demand is likely to rise in Australia, in my view, with increasing AI/data centre expansion, electric vehicles, a rising population and so on.
APA transports half of Australia's gas usage, so it's an essential part of the energy picture in the country. The business is also invested in gas processing, gas storage, gas-powered electricity generation, wind farms, solar farms and electricity transmission.
It's regularly investing in new gas pipelines and other energy assets, expanding its portfolio and unlocking more cash flow. Its revenue is also benefiting from inflation-linked increases.
The ASX dividend income stock has increased its payout every year for 20 years in a row and I expect that to continue.
