3 defensive ASX dividend shares to buy with $10,000

These shares could be top picks for income investors looking for defensive options.

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If you are fortunate enough to have $10,000 to invest in ASX dividend shares, then it could be worth considering the three in this article.

They are high-quality businesses with positive outlooks, defensive qualities, and offer attractive forecast dividend yields.

Here's why they could be top picks for income investors with $10,000 to put to work in the share market this month:

APA Group (ASX: APA)

The first ASX dividend share that could be a top pick is APA Group. It is arguably one of the most defensive income stocks on the Australian share market.

The company owns and operates critical energy infrastructure, including gas pipelines, storage assets, and electricity transmission infrastructure across Australia. These assets are typically governed by long-term contracts and regulated frameworks, which provide highly predictable cash flows.

That stability is what underpins APA's appeal to income investors. Its focus is on steady earnings, inflation-linked revenue, and consistent distributions, which makes it a strong foundation holding for a dividend-focused portfolio.

The consensus estimate is for dividends of 58 cents per share in FY 2026. Based on its current share price of $8.78, this would mean a dividend yield of 6.6%.

Transurban Group (ASX: TCL)

Another ASX dividend share to consider for a $10,000 investment is Transurban Group.

Transurban owns and operates toll roads in Australia and North America, including some of the country's most important transport corridors. This includes CityLink and the West Gate Tunnel in Melbourne, the Cross City Tunnel and M5 East in Sydney, and AirportlinkM7 in Brisbane.

These assets benefit from long concession lives, pricing power through toll escalation, and traffic volumes that tend to grow over time with population and urban expansion.

While Transurban carries debt, its cash flows are highly visible and resilient, which supports reliable distributions. For long-term investors, it also offers a degree of inflation protection, as tolls typically rise each year.

It is expected to reward shareholders of 69 cents per share in FY 2026. Based on its current share price of $13.95, this represents a dividend yield of 4.9%.

Woolworths Group (ASX: WOW)

Finally, Woolworths Group could be an ASX dividend share for the $10,000. It is one of Australia's most trusted dividend payers.

As the country's largest supermarket operator, Woolworths benefits from demand that doesn't disappear when economic conditions soften. People still need to buy groceries, which helps support earnings and cash generation even during tougher periods.

Analysts expect this to underpin a fully franked dividend of 99.5 cents per share in FY 2026. Based on its current share price of $30.08, this would mean a dividend yield of 3.3%.

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group, Transurban Group, and Woolworths Group. 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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