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.
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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.
