Got $5,000? 5 ASX income shares to buy and hold forever

Chasing income doesn't have to mean taking big risks. These five shares focus on dependable cash flows and resilience.

| More on:
A woman relaxes on a yellow couch with a book and cuppa, and looks pensively away as she contemplates the joy of earning passive income.

Image source: The Motley Fool

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you suddenly had $5,000 to invest and your priority was income, I would focus on owning businesses that can pay you reliably through good times and bad, and ideally grow those payments over time.

These are five ASX income shares I'd be happy buying and holding for the long run.

Telstra Group Ltd (ASX: TLS)

Mobile, broadband, and network services are essential, and that gives telecommunications leader Telstra defensive qualities that are hard to replicate elsewhere on the ASX.

What I like most is that Telstra's dividend is now backed by a simpler business and improving cash flow discipline. The company isn't trying to reinvent itself every year. It's focused on execution, network leadership, and returning capital to shareholders. For income investors, that predictability is valuable.

Woolworths Group Ltd (ASX: WOW)

Woolworths is a classic ASX income share for a reason. Supermarkets sit at the heart of household spending, and demand doesn't disappear in tougher economic conditions.

While Woolworths has had a challenging period operationally, the business still generates strong cash flows and holds a dominant market position. Over long periods, that combination has translated into reliable dividends and growth. I see Woolworths as a steady income anchor rather than an exciting story, and that's exactly what you want in a long-term portfolio.

Accent Group Ltd (ASX: AX1)

Accent Group is the higher-risk option on this list, but also one with more income upside over time.

The company has been impacted by soft consumer spending and discounting pressure, which has weighed on both earnings and its share price. However, Accent owns a portfolio of well-known footwear brands and operates with a flexible store network and strong supplier relationships.

If consumer conditions normalise, there's scope for both a recovery in profitability and a rebound in dividends. For patient investors, this could add a bit of growth to an income-focused portfolio.

APA Group (ASX: APA)

APA is one of the most dependable income shares on the ASX. Its energy infrastructure assets are long-lived, regulated, and essential to Australia's gas and energy networks.

What appeals to me is the visibility. APA's earnings and distributions are supported by long-term contracts, which makes cash flows more predictable than most businesses. That reliability underpins its attractive dividend yield and makes APA well suited to investors who value income stability.

Transurban Group (ASX: TCL)

Transurban rounds out the list as a high-quality infrastructure income share.

Toll roads benefit from population growth, urban congestion, and limited alternatives. Once an asset is built and operating, it tends to generate steady, inflation-linked cash flows for decades. Transurban has also demonstrated an ability to reinvest in new projects that extend its earnings base over time. For income investors, this ASX income share offers a blend of yield today and distribution growth over the long run.

Foolish takeaway

With $5,000, I think the focus should be on owning businesses that can keep paying you through multiple cycles.

Telstra and Woolworths provide defensive income, APA and Transurban add infrastructure-backed stability, and Accent Group introduces a bit of recovery-driven upside. Together, they form a balanced mix of income and resilience that I'd be comfortable holding for many years.

Motley Fool contributor Grace Alvino has positions in Transurban 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, Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Happy shareholders clap and smile as they listen to a company earnings report.
Dividend Investing

Brokers say these ASX dividend shares are buys

Let's see which shares brokers are recommending for income investors.

Read more »

Small girl giving a fist bump with a piggy bank in front of her.
Bank Shares

Buying Westpac shares today? Here's the dividend yield you'll get

Westpac has a reputation as one of the ASX's most reliable providers of fat, fully franked dividends.

Read more »

A dad holds his son up high so he can shoot the basketball into the ring.
Dividend Investing

Does an 8.5% yield make WAM Capital shares a slam-dunk buy?

Opportunity or dividend trap?

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Dividend Investing

5 ASX dividend shares paying 4% a year on average in 2026!

Big yields are hard to find right now...

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

3 wonderful ASX dividend shares I'd buy with $3,000 right now

I’d call these stocks wonderful buys for passive income.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

I'd buy 328 shares of this ASX 200 stock to aim for $1,000 a year

This business can provide investors with excellent passive income.

Read more »

Three colleagues stare at a computer screen with serious looks on their faces.
Dividend Investing

Why analysts are recommending these ASX dividend stocks to their clients

Looking for income options? Analysts think these are the ones to buy.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Dividend Investing

The best ASX dividend shares to buy now

Bell Potter has picked out two top shares for income investors.

Read more »