3 top ASX dividend shares for income investors to buy

Let's see why these shares could be worth considering for an income portfolio.

| More on:

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

With interest rates rising, income investors may feel like they finally have alternatives again.

But even with term deposits offering improved returns, many ASX dividend shares still provide compelling income alongside the potential for capital growth.

For those looking to build a reliable income stream, here are three top ASX dividend shares to consider.

Man holding Australian dollar notes, symbolising dividends.

Image source: Getty Images

APA Group (ASX: APA)

The first ASX dividend share that income investors could consider is APA Group.

APA is one of Australia's leading energy infrastructure businesses, operating a vast portfolio of gas pipelines, storage assets, and energy facilities. These assets are typically underpinned by long-term contracts, which provide steady and predictable cash flows.

This reliability has allowed APA to deliver consistent distributions over many years, making it a popular choice among income-focused investors.

Looking ahead, APA's pipeline of growth projects and its exposure to Australia's evolving energy landscape could support further earnings and distribution growth. While not the fastest-growing company on the market, its defensive characteristics and dependable income profile are key attractions.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be a top pick is Rural Funds Group.

Rural Funds Group is an agricultural real estate investment trust that owns a diversified portfolio of farming assets across Australia. These include almond orchards, cattle properties, vineyards, and macadamia plantations.

The key appeal of the company is its business model. It leases its assets to experienced agricultural operators on long-term agreements, which helps provide stable and predictable rental income.

This structure can make its distributions relatively resilient, even when underlying agricultural conditions fluctuate. In addition, exposure to agricultural land offers diversification benefits and potential long-term value appreciation.

Telstra Group Ltd (ASX: TLS)

A final ASX dividend share that income investors might look at is Telstra Group Ltd.

Telstra is Australia's largest telco and plays a key role in the country's digital infrastructure. Its earnings are supported by a large and loyal customer base across mobile, broadband, and enterprise services.

The company has recently moved into its Connected Future 30 strategy, which aims to build on the success of its previous transformation program and drive further growth.

Telstra is also known for its attractive dividend yield, which has been supported by strong cash generation. Combined with its relatively defensive business model, this makes it a compelling option for investors seeking steady income.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group, Rural Funds Group, and Telstra 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 young woman saving money in a piggy bank.
Dividend Investing

How to build a $10,000 annual income with ASX shares

For me, building income is less about chasing yield and more about consistency, quality, and time.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

3 ASX dividend shares near 52-week lows with very tempting yields

These REITs now offer higher yields and rebound potential.

Read more »

Woman relaxing at home on a chair with hands behind back and feet in the air.
Dividend Investing

My top ASX passive income picks for April

Passive income takes time to build, but I think starting with the right mix of assets can make a big…

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

Own ASX IOZ or other iShares ETFs? Here is your next dividend

BlackRock has announced the next round of distributions for a range of its ASX iShares ETFs.

Read more »

A woman looks excited as she holds Australian dollars in the air.
Dividend Investing

ASX passive income: How much do I need to invest in to earn $1,000 per week?

It's more achievable than you'd think.

Read more »

Person with a handful of Australian dollar notes, symbolising dividends.
Dividend Investing

2 ASX shares with dividend yields above 8%

These businesses offer an exceptionally high dividend yield for investors.

Read more »

A woman is excited as she reads the latest rumour on her phone.
Dividend Investing

$1,000 buys 102 shares in this 6% yielding income stock

This is one of the most reliable dividend stocks on the ASX.

Read more »

Retired couple hugging and laughing.
Dividend Investing

How I'd invest $100,000 for retirement income on the ASX right now

This is a durable portfolio delivering retirement income today for Australian retirees.

Read more »