2 ASX income shares I'd buy outside Westpac and the big four banks

The big four banks are popular with income investors for good reason.

Westpac Banking Corp (ASX: WBC) and the rest can all provide exposure to large, profitable businesses with fully franked dividends.

I remain positive on the better-quality names in that group, particularly Commonwealth Bank of Australia (ASX: CBA). But many Australian income investors may already have meaningful exposure to the banks through direct shareholdings, superannuation, or index funds.

That is why I think it can be useful to look outside the big four as well.

Two ASX income shares I would consider are named in this article.

APA Group (ASX: APA)

APA Group is one income share I would buy outside the banks.

The company owns and operates energy infrastructure, including gas pipelines, power generation assets, storage, and related infrastructure across Australia.

I like APA because it gives investors exposure to a very different type of income stream.

Banks are closely tied to credit growth, margins, bad debts, housing, business lending, and the wider economy. APA is more connected to energy infrastructure, contracted revenue, regulated assets, and long-term demand for reliable energy supply.

That difference is useful. Australia's energy system is changing, but I do not think that makes energy infrastructure irrelevant. In fact, reliable infrastructure may become even more important as the grid deals with renewable energy, industrial demand, gas reliability, and system flexibility.

APA is not without risk. Debt levels, interest rates, regulation, project execution, and energy policy can all affect the investment case. Investors also need to consider how the energy transition may shape the business over the very long term.

But I think APA's asset base remains important. Pipelines and related infrastructure are difficult to replicate, and the company has a long record of paying distributions to investors.

For income investors wanting something outside the banking sector, I think APA offers a useful blend of yield, infrastructure exposure, and recurring cash flow.

Charter Hall Long WALE REIT (ASX: CLW)

The second ASX income share I would consider is Charter Hall Long WALE REIT.

This real estate investment trust (REIT) owns a portfolio of long-leased properties across Australia. Its tenants include government, major corporates, and large operators across different sectors.

The appeal here is the lease profile. Long leases can provide better visibility over rental income, which can support distributions over time. That is attractive for investors who want income but do not want all of it tied to the banks.

Charter Hall Long WALE REIT also owns a diversified portfolio, including assets across office, industrial, logistics, retail, and social infrastructure-style property. I like that spread because the income is not dependent on one tenant or one single property type.

There are risks to consider. REITs can be sensitive to interest rates, property valuations, debt costs, and investor sentiment towards listed property. Higher bond yields can make income assets less attractive, while weaker property markets can put pressure on valuations.

But I think that is also why listed property income shares can become interesting when the market is cautious.

For investors seeking income, Charter Hall Long WALE REIT offers something quite different from bank dividends. It provides exposure to rental income backed by a large property portfolio and long leases.

Foolish takeaway

I do not think income investors need to avoid the big four banks. They can still play a useful role, especially when the focus is fully franked dividends and large, profitable Australian businesses.

But concentration is important. If an investor already has plenty of exposure to Westpac and the other major banks, I think APA and Charter Hall Long WALE REIT could be worth considering as alternatives. They bring different income drivers, different risks, and exposure to infrastructure and property rather than bank earnings.

That kind of variety can be useful when building a more balanced income stream over time.