Westpac Banking Corp (ASX: WBC) and the other major banks are popular choices with Australian income investors.
But there are plenty of other ASX shares that can provide attractive income.
These three would be on my shortlist.
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APA Group (ASX: APA)
APA would be one of my first choices outside the banking sector.
The company owns and operates energy infrastructure across Australia, including gas pipelines, electricity transmission assets, and other infrastructure.
I like the type of cash flow these assets can produce.
Much of APA's revenue is supported by long-term contracts, which can give the company reasonable visibility over future earnings and distributions.
APA is also continuing to invest in new infrastructure as Australia's energy system develops. If those projects earn attractive returns, they could help the business grow while its existing assets continue generating cash.
Debt and funding costs are important risks to watch with an infrastructure company like APA. Even so, I think its essential assets and regular distributions make it a strong long-term income option.
BWP Trust (ASX: BWP)
BWP Trust gives investors a different source of income through commercial property.
The real estate investment trust (REIT) owns a portfolio of large-format retail properties, with Bunnings a major tenant.
I like that because the quality of the tenant can be just as important as the property itself.
Bunnings has a strong position in Australian home improvement, and long leases can provide BWP with relatively predictable rental income.
Over time, rent reviews and changes across the property portfolio can also help increase income.
Like most property investments, BWP can be sensitive to interest rates and changes in property valuations. I would also keep an eye on its tenant concentration.
But for an income investor, I think the combination of established properties, a strong major tenant, and regular distributions is worth considering.
Deterra Royalties Ltd (ASX: DRR)
Deterra Royalties would be my third income pick. The company earns royalties from mining operations rather than operating the mines itself.
Its most important asset is the royalty over the Mining Area C iron ore operations in Western Australia, which are operated by BHP Group Ltd (ASX: BHP).
I like that model for income because Deterra receives a share of revenue linked to production without having to fund the enormous operating and development costs that come with running a mine.
That can allow a large proportion of cash generated by the business to flow through to shareholders.
The trade-off is that Deterra's income can still move with commodity prices and production volumes, while the business has historically been heavily dependent on one major royalty asset.
Even with those risks, I think the royalty model gives income investors an interesting way to gain exposure to resources.
Foolish takeaway
I would not feel the need to rely on bank dividends alone for ASX income.
APA, BWP Trust, and Deterra Royalties generate cash in very different ways, through energy infrastructure, property rents, and mining royalties.
For me, that makes all three worth considering when looking beyond the major banks for long-term income.
