If I had $2,500 to invest today and my goal was income, I would be looking for businesses with reliable cash flows, sustainable dividends, and long-term relevance. I would not be trying to chase the highest yield available.
Instead, I would focus on quality income that I can reasonably expect to grow over time.
With that said, here are two ASX income stocks I would buy with that $2,500 in January.
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Transurban Group (ASX: TCL)
Transurban is one of the most dependable income stocks on the ASX in my view.
The company owns and operates toll roads across Australia and North America, giving it access to long-life infrastructure assets with inflation-linked revenue. Traffic volumes tend to grow over time as cities expand, while tolls are typically indexed to inflation or set increases.
That combination supports highly predictable cash flows, which is exactly what income investors want.
For FY26, Transurban intends to increase its distribution to 69 cents per share, up from 65 cents in FY25. At current prices, that represents a dividend yield of around 5%.
Importantly, this income is backed by assets that remain essential regardless of economic conditions. People may cut discretionary spending, but they still need to commute, move goods, and travel through major cities.
If I were allocating $2,500, Transurban would likely take the largest share of that investment.
Telstra Group Ltd (ASX: TLS)
Telstra is another ASX income stock that continues to appeal to defensive investors.
The company benefits from its dominant position in Australia's telecommunications market, with mobile and broadband services that households and businesses rely on every day. That recurring demand underpins steady earnings and a relatively resilient dividend profile.
According to CommSec, the consensus estimate is a fully franked 20 cents per share dividend in FY26. This means that Telstra currently offers an estimated forward dividend yield of around 4.15%, which is attractive when combined with its defensive characteristics. While Telstra is not a high-growth business, it does not need to be for income-focused investors.
What I like most is that Telstra's earnings are less sensitive to economic cycles than many other ASX companies. That makes it a useful stabiliser in an income portfolio.
For someone investing $2,500, Telstra provides diversification away from infrastructure while still maintaining a focus on dependable income.
Foolish takeaway
With a relatively modest amount like $2,500, I think it makes sense to prioritise quality and reliability over chasing yield.
Transurban and Telstra offer exposure to two essential parts of the economy, transport and communications, while providing income that investors can reasonably expect to persist over the long term.
They would not make anyone rich overnight, but for building a steady income stream, I think they are two sensible places to start.
