ASX income stocks are a fantastic option for any savvy Australian investor who wants an easy passive income.
The problem is that some are much more reliable than others. This is especially true when the sharemarket goes through periods of instability, such as the volatility we've all endured throughout the past couple of months.
As far as I'm concerned, there is one long-standing dividend-paying income stock on the ASX which stands apart from the rest: APA Group (ASX: APA).
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What does APA do, and what does it pay?
APA is Australia's largest energy infrastructure company, owning and operating an extensive portfolio of gas, electricity, solar, and wind assets.
The company is also a major owner and operator of Australia's gas distribution network, including pipelines, gas-fired power stations, and storage facilities. It currently transports more than half the natural gas used in Australia.
Since listing on the ASX in 2000, APA Group has substantially grown its energy assets. In more recent times, it has added solar farms to its portfolio.
Because of this, APA is also one of the most stable ASX income shares listed on the ASX. It's also a quiet achiever.
The company is well-known for paying strong, consistent dividends, with revenue derived from long-term contracted infrastructure assets.
The gas and energy infrastructure pipeline owner and operator also increased its semi-annual dividends consistently for over the past 20 years.
And what's more, its yield is usually much higher than the wider market.
It's hard to find a more appealing option for investors seeking an ongoing passive income.
APA paid an interim dividend of 27.5 cents in the first half of FY26 and is guiding a full-year dividend of 58 cents per security. That translates to a forward distribution yield of 5.96%, partially franked, at the time of writing.
What's the income stock's share price outlook?
At the time of writing on Wednesday afternoon, APA shares are down 2.75% to $9.72 a piece. That means $1,000 invested in APA shares right now will buy you 102 shares (and a little change left over).
Despite today's dip, the shares are now 7.6% higher year to date and 22.6% higher than 12 months ago.
What's particularly attractive about the stock is that it's a stable, infrastructure-style asset that benefits from long-term contracts and isn't sensitive to short-term fluctuations in commodity and materials prices.
After such a robust rally this year, analysts are pretty neutral on what we can expect next out of APA's shares. TradingView data shows that most brokers (five out of 10) have a hold rating on the shares. The average target price is $8.88, which implies a 8.68% downside at the time of writing.
