There are a few ASX dividend stocks that I think could be excellent to buy in virtually any situation. One of those appealing options, in my view, is APA Group (ASX: APA).
I've written for years about how important I view the business for Australia, and recent events make the business even more essential.
APA has a wide range of assets, including electricity transmission, wind farms, solar farms, gas storage, gas processing, and gas-powered energy generation. Its key asset is its network of gas pipelines which transports half of the country's usage, taking gas from sources of supply to where it's needed.
Aside from my general point that the business provides important energy, I think there are a couple of great reasons to like this ASX dividend stock.
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Excellent passive income stability
APA has one of the most pleasing records when it comes to stable and growing payouts. APA has increased its annual payout every year for the past 20 years, which has been good for investors who want reliable income.
The business is planning to increase its annual payout by 1 cent per security in FY26 to 58 cents. At the time of writing, that translates into a forward distribution yield of 6.1%, excluding any potential franking credits.
In my view, any ASX dividend stock with a starting yield of more than 6%, and a high likelihood of ongoing payout growth, seems very attractive to me.
The ASX dividend stock has growth potential
APA has steadily grown its portfolio of assets over the years, including renewable energy, electricity transmission and more pipelines.
It has organic revenue growth built in, with a large majority of its revenue linked to inflation. This could mean revenue growth accelerates in FY27, depending on how the events in the Middle East play out.
In February, the business announced that it planned to progress stage 3 of its east coast gas grid expansion plan, which is expected to add approximately 30% of additional capacity and address projected southern market gas shortfalls from 2028.
APA will invest close to $500 million for this capacity expansion.
The ASX dividend stock's calculations suggest that domestic gas delivered from northern supply markets can be delivered into southern markets at a cost, including transport, materially below the cost of imported LNG.
APA CEO and Managing Director Adam Watson said:
The notion that Australia, as one of the three largest LNG exporters in the world, would need to resort to importing LNG when lower cost, lower emissions domestic gas is readily available, simply doesn't make sense and would represent a massive failure of government policy. The current Federal Government Gas Market Review provides the opportunity to avoid that failure for the long-term.
Incremental investment in existing pipeline infrastructure is a logical, proven and timely solution to meet domestic gas needs. AEMO's 2025 Gas Statement of Opportunities clearly states that expansion of existing pipelines, along with unlocking northern supply, would meet forecast gas needs well out into the 2030s without an LNG import terminal.
When you look at the data, when compared to LNG imports, it's clear APA's expansion projects are the most reliable, cost-efficient and lower emissions solution to get Australian gas to where it's needed.
I think this ASX dividend stock will be an important part of the Australian economy for decades to come, making it a compelling long-term buy.
