When I am looking for income on the ASX, I want two things above all else: visible cash flows and clear dividend guidance.
A high dividend yield on its own is not enough. It needs to be supported by assets or earnings that give me confidence the income can be maintained.
With that in mind, here are two ASX income stocks offering dividend yields above 6% that I would be comfortable buying.
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APA Group (ASX: APA)
APA Group is one of the most established income stocks on the ASX.
The company owns and operates critical energy infrastructure across Australia, including gas pipelines, storage assets, and electricity transmission. These assets are typically governed by long-term contracts and regulated frameworks, which helps underpin stable and predictable cash flows.
For FY26, APA is guiding to a distribution of 58 cents per share. Based on its current share price of $8.80, this represents a dividend yield of approximately 6.6%.
What I find attractive about APA is that its earnings are largely insulated from short-term economic cycles. Demand for energy transport does not fluctuate in the same way as discretionary spending, which makes APA well suited to income-focused portfolios.
While APA may not deliver rapid growth, it offers exactly what many income investors are seeking: visibility, scale, and consistency.
HomeCo Daily Needs REIT (ASX: HDN)
HomeCo Daily Needs REIT is another ASX income stock offering an attractive dividend yield. It is supported by a defensive property portfolio.
The business owns large-format retail assets leased to tenants that provide everyday goods and services. These include supermarkets, hardware stores, and other non-discretionary retailers. This tenant mix helps support rental income even when consumer conditions are softer.
The REIT is guiding to a distribution of 8.6 cents per share in FY26. At a current share price of $1.37, this translates to a dividend yield of around 6.3%.
For income investors, HomeCo Daily Needs REIT offers exposure to property-backed cash flows without relying on premium retail or office markets. Its focus on daily needs assets adds an extra layer of defensiveness to the income stream, in my opinion.
Foolish takeaway
APA Group and HomeCo Daily Needs REIT both offer dividend yields above 6%, backed by assets designed to produce recurring cash flows.
Neither stock is about chasing growth. Instead, they are about generating income with a reasonable level of visibility. For investors building or supplementing an income portfolio, I think both are worth serious consideration in January.
