The Dicker Data share price climbed as high as $11.95 during mid-afternoon trade before easing slightly.

At the time of writing, the ASX tech share is up 1.97% to $11.92.

That takes its one-month gain to around 35%, while shareholders have enjoyed a rise of more than 50% over the past year.

So, what has investors buying Dicker Data shares?

Strong start to FY26

The recent rally followed a strong trading update released at Dicker Data's annual general meeting (AGM) in late May.

For the first 4 months of FY26, unaudited gross revenue increased 13.4% to $1.27 billion.

Gross operating profit surged 19.3% to $120.9 million, while EBITDA climbed 32% to $58.2 million.

Net profit before tax delivered the biggest increase, jumping 45.5% to $47.3 million.

Management said the result was driven by stronger demand for endpoint products, software, and data centre refresh projects.

Margins also improved as the company sold through older inventory purchased at lower prices.

Tech spending is lifting demand

Dicker Data distributes hardware, software, and cloud products from major global technology vendors to more than 10,000 reseller partners across Australia and New Zealand.

This gives the company exposure to several areas of technology spending without needing to develop the products itself.

Demand is currently being supported by businesses replacing older computers, investing in data centres, and spending more on artificial intelligence (AI) infrastructure.

Software has also become a larger part of the business, with gross software sales increasing 21% during FY25 to around $1.17 billion.

Dicker Data has also added new vendors across cybersecurity, data management, and networking, expanding the range of products available to its reseller partners.

Management expects the strong end-of-financial-year trading period to support momentum through the first half. However, it warned that higher vendor prices and inventory replacement costs could weigh on demand later in the year.

Has the rally gone too far?

The strong trading update helps explain the recent rally, but a 35% rise in one month has also lifted expectations.

Dicker Data shares are now trading above several broker price targets published before the latest rally.

Morgan Stanley upgraded the stock to 'overweight' in late May and raised its target to $11.10.

UBS also lifted its valuation to $11.20, while Jarden has a buy rating and an $11 price target.

However, Macquarie is more cautious, with a neutral rating and a target of $10.35.

Only time will tell if Dicker Data shares have more room to run.

The post This ASX tech stock just hit a 52-week high after soaring 35% in a month appeared first on The Motley Fool Australia.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) slipped 1.22% to close at 8,625.1 points on Friday.

ASX 200 tech shares are continuing to recover from a 48% sector meltdown between 29 August 2025 and 30 March 2026.

Fears over the impact of artificial intelligence (AI) drove the decline, but ASX investors appear to be over it.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) is now up 26% since 31 March vs. a 1.9% lift for the rest of the market.

Six of the 11 market sectors finished in the green last week.

Let's review.

ASX 200 tech shares outperform by a long shot

Let's take a look at how the major ASX 200 tech shares performed last week.

The market's largest tech company by market cap, Xero Ltd (ASX: XRO), rose 5.45% to $79.27 per share.

The WiseTech Global Ltd (ASX: WTC) share price zoomed 10.55% to close at $39.81 on Friday.

Investors in Megaport Ltd (ASX: MP1) shares had an exciting week that ended with a 19.07% share price rise to $18.48.

On Friday, Megaport shares were the best performers of the ASX 200, reaching a new 52-week high of $21.16.

This followed news of four new AI infrastructure contracts worth $458.9 million and a fully underwritten $827.3 million entitlement offer.

TechnologyOne Ltd (ASX: TNE) shares rose 8.34% to $32.33 apiece, while Nextdc Ltd (ASX: NXT) lifted 4.07% to $15.86.

The Life360 Inc (ASX: 360) share price soared 13.81% to $22.

Codan Ltd (ASX: CDA) shares rose 2.46% to finish at $43.70 apiece on Friday.

The Siteminder Ltd (ASX: SDR) share price lifted 10% to $3.85.

Objective Corporation Ltd (ASX: OCL) shares ascended 8.12% to $11.32.

The Catapult Sports Ltd (ASX: CAT) share price rose 8.31% to $3.65.

Dicker Data Ltd (ASX: DDR) shares lifted 7.72% to $11.16 apiece.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 tech stocks led the market with big share price gains last week appeared first on The Motley Fool Australia.

Data shows 124 ASX 200 companies are in the red today.

This includes a hefty 3.7% share price decline for the market's largest listed company, BHP Group Ltd (ASX: BHP).

Meanwhile, several brokers have lifted their ratings on select ASX shares this week.

Let's take a look.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is $2.98, up 3.7% today and down 19% in the calendar year to date (YTD).

Last week, Endeavour unveiled a strategy involving $300 million in cost savings by FY29, including $100 million in FY27.

The group wants to strengthen Dan Murphy's price leadership, modernise BWS' digital experience, and lift its hotels performance. 

Endeavour will divest non-core assets, including most of its winery and vineyard portfolio.

The group also lowered its dividend payout ratio to a range of 50% to 75% of underlying net profit after tax (NPAT).

Citi upgraded the ASX 200 consumer discretionary share to a buy rating on Wednesday.

However, the broker reduced its 12-month price target from $3.45 to $3.25.

This still implies a potential near-10% upside ahead.

BHP Group Ltd (ASX: BHP)

The BHP Group share price is $62.51, down 3.7% today, and up 40% over six months.

Germany's DZ Bank AG upgraded the ASX 200 mining share to a hold rating this week.

DZ Bank has a $65 price target on BHP shares.

This suggests that only 4% upside is left for the next 12 months.

Graincorp Ltd (ASX: GNC)

The Graincorp share price is $5.09, up 2% today, and down 38% over six months.

Jarden upgraded the ASX 200 consumer staples share to a hold rating on Tuesday.

The broker lowered its price target from $5.50 to $5.40.

This implies potential capital growth of 6% over the next year.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price is $11.16, down 1.4% today.

Over the past month, this ASX 200 technology share has lifted 22%.

Morgan Stanley upgraded Dicker Data shares to a buy rating this week.

The broker raised its 12-month price target from $10.30 to $11.

This implies the tech stock is fully valued today.

Nufarm Ltd (ASX: NUF) 

The Nufarm share price is $2.87, up 0.7% on Thursday and up 24% YTD.

UBS upgraded the chemical and seed technology company to a buy rating this week.

Following Nufarm's FY25 results, the broker lifted its target on the ASX 200 agriculture share from $2.80 to $3.50.

This suggests a 22% upside is on the way.

Sims Ltd (ASX: SGM)

The Sims share price is $27.68, down 2.5% today and up 52% YTD.

Morgan Stanley upgraded Sims shares to a hold rating on Monday.

The broker has a $24 target, implying a 13% downside over the next 12 months.

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price is 80 cents, down 0.6% today and down 32% over the past month.

Morgans upgraded the ASX 200 consumer discretionary share to a buy rating this week.

The broker said:

Following the announcement of AUSTRAC's investigation this month, the TAH share price has fallen approximately 37%.

While we expect the investigation to remain an overhang for the foreseeable future, at these levels the stock appears materially undervalued.

Current trading conditions remain supportive in our view and position the company well for a strong upcoming result, despite inherent uncertainty surrounding the scope of the investigation and the quantum of potential penalties.

Morgans has a share price target of $1.07, implying 34% potential capital growth ahead.

The post 7 ASX shares attracting upgraded ratings this week appeared first on The Motley Fool Australia.

It feels much easier emotionally to buy after a pullback. But I do not think a rising share price automatically means investors have missed the boat.

Sometimes a share is trading strongly because the investment case is improving.

That is how I see the ASX shares in this article. All three have reached 52-week highs or better on Tuesday, but I would still be happy to buy and hold them.

BHP Group Ltd (ASX: BHP)

BHP has had a powerful run, and I can understand why some investors may hesitate after such strength.

Resource shares can be cyclical, and buying after a rally is never without risk. Iron ore prices, China's economy, costs, and commodity sentiment can all move the share price around quickly.

But I think BHP's long-term story remains attractive, particularly because of copper.

Copper is becoming increasingly important to electricity networks, data centres, renewable energy, electric vehicles, industrial activity, and broader electrification. At the same time, new copper supply is difficult to bring on quickly.

That is a useful setup for a company with BHP's scale, balance sheet, and existing copper exposure.

Iron ore still gives the group a powerful cash flow base, while potash offers another long-term option through Jansen. I like that mix. BHP is not a pure copper stock, but it gives investors exposure to copper through a diversified mining giant with world-class assets.

The valuation may not be cheap after the recent rise, but I would still buy BHP shares as a long-term resources holding.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems is a much higher-risk ASX share, but I think the opportunity is compelling.

The company is focused on defence technology, with key areas including counter-drone systems, remote weapon systems, high-energy laser weapons, and space control.

I like the exposure because modern defence needs are changing quickly. Drones are now a major feature of military conflict, border protection, critical infrastructure security, and public safety planning. That creates demand for systems that can detect, track, and respond to threats.

EOS has also completed its acquisition of MARSS, which adds command-and-control capability through the NiDAR system and broadens the group's counter-drone offering.

That could make the business more valuable to customers looking for a more complete solution, rather than a narrow product set.

The company's recent AGM presentation highlighted a large illustrative order book and strong customer interest across counter-drone and space control.

Investors still need to watch execution, contract timing, and cash flow, but I think EOS now has a stronger platform to chase a large defence technology opportunity.

Dicker Data Ltd (ASX: DDR)

Dicker Data is another ASX share I would buy despite its recent strength.

The technology distributor is not always viewed as an exciting growth stock, but I think it has a very useful position in the Australian and New Zealand technology market.

Dicker Data works with reseller partners and distributes hardware, software, cloud, and infrastructure products from major global vendors. That puts it close to ongoing technology spending across businesses, government, and enterprise customers.

I also like that the business is exposed to several steady technology trends at once. These include cloud adoption, software subscriptions, infrastructure upgrades, cybersecurity needs, AI-related spending, and the continuing PC refresh cycle.

Dicker Data will still be affected by margins, demand cycles, working capital, and vendor relationships. But I think its long operating history, partner network, and broad product exposure make it a quality technology share.

Foolish takeaway

A 52-week high should not automatically scare investors away.

The more important question is whether the business can keep improving over the next five or 10 years. In these three cases, I think the answer is yes.

What matters to me is whether the strength in these share prices is backed by real business momentum. In each case, I think there are long-term drivers that could continue to support growth, even if the ride becomes bumpier from here.

None are perfect, but I think each has enough long-term potential to justify buying, even after a strong run.

The post 3 top ASX shares at 52-week highs I'd still buy appeared first on The Motley Fool Australia.

Ten that were given the equivalent of buy ratings are listed below. Here's what is being recommended:

Dicker Data Ltd (ASX: DDR)

In response to this computer hardware and software distributor's trading update, Morgan Stanley has upgraded Dicker Data's shares to an overweight rating with an improved price target of $11.00.

Eagers Automotive Ltd (ASX: APE)

This auto retailer released a trading update at its annual general meeting this week. In response, Macquarie retained its outperform rating on the ASX share with a trimmed price target of $27.10.

Goodman Group (ASX: GMG)

The team at Morgans was relatively pleased with this industrial property giant's third-quarter update. In response to the update, the broker reiterated its buy rating with a $36.00 price target.

Guzman Y Gomez Ltd (ASX: GYG)

Ord Minnett is positive on this quick service restaurant operator's decision to exit the US market. It responded to the news by retaining its buy rating with a $31.00 price target.

Life360 Inc. (ASX: 360)

Bell Potter was busy reviewing this location technology company's quarterly update this week. It thinks the post-results selloff was an overreaction and has created a buying opportunity. This is especially the case given its strong growth in paying circles (paid subscribers). Bell Potter put a buy rating and $33.00 price target on Life360's shares.

Liontown Ltd (ASX: LTR)

Over at UBS, its analysts are bullish on this lithium miner. This week, the broker retained its buy rating on Liontown's shares with a $2.70 price target.

Mineral Resources Ltd (ASX: MIN)

This mining and mining services company announced the expansion of its Mt Marion lithium operation last week. Bell Potter was pleased with the plan and has retained its buy rating with an improved price target of $80.50.

Nufarm Ltd (ASX: NUF)

Morgans was pleased with this agricultural chemicals company's half-year results and believes it is "on track to deliver strong underlying EBITDA growth in FY26." As a result, the broker believes Nufarm shares are "materially undervalued" at current levels. It has put a buy rating and $4.15 price target on them.

Paladin Energy Ltd (ASX: PDN)

Macquarie has turned bullish on this uranium producer. This week, the broker upgraded the ASX uranium share to an outperform rating with a $13.25 price target.

Web Travel Group Ltd (ASX: WEB)

UBS responded to this travel technology company's FY 2026 results by retaining its buy rating with a trimmed price target of $4.60. It felt the company delivered a solid result given the challenging finish to the year.

The post 10 ASX shares given buy ratings this week appeared first on The Motley Fool Australia.

At an average dividend yield of 5%, an investor would need around $240,000 invested to generate $12,000 a year in dividends. That works out to $1,000 a month, before tax and before considering franking credits.

Getting there takes time, but I think there are five steps that can make the journey realistic.

Start with sustainable dividends

The first step is to focus on dividends that can last.

A high dividend yield can look attractive, but it is not always a good sign. Sometimes the yield is high because the share price has fallen and the market expects the dividend to be cut.

I would rather look for ASX shares with solid earnings, sensible payout ratios, manageable debt, and businesses that should still be relevant in five or 10 years.

That could include shares such as Wesfarmers Ltd (ASX: WES), which has a long record of owning strong businesses and returning cash to shareholders. Dicker Data Ltd (ASX: DDR) could be another option for investors who want exposure to technology distribution and income.

The key is not just the dividend today. It is whether the company can keep supporting and growing that dividend over time.

Spread the risk

The second step is diversification.

Relying on one or two dividend shares can be risky. Even good businesses can have difficult years. A dividend cut from a major holding can quickly reduce passive income.

That is why I would spread money across different types of dividend shares.

An investor could also consider an exchange-traded fund (ETF) such as the Vanguard Australian Shares High Yield ETF (ASX: VHY) or the Betashares S&P Australian Shares High Yield ETF (ASX: HYLD). They provide exposure to a basket of higher-yielding Australian shares, which can make diversification easier than picking every stock individually.

Pay attention to franking

The third step is to think about franking credits.

Many Australian companies pay fully franked dividends, which means tax has already been paid at the company level. For some investors, franking credits can improve the after-tax income received.

That does not mean investors should buy a share only because it is fully franked. The business still needs to be strong enough to support the dividend.

But when comparing two similar income options, franking can make a meaningful difference.

Reinvest before withdrawing

The fourth step is patience. If the goal is to eventually generate $1,000 per month, I would reinvest dividends while the income stream is still being built.

Reinvesting dividends allows investors to buy more shares, which can increase future income. It can feel slow at first, but over time the compounding effect can become powerful.

The longer an investor can leave the income machine to grow before drawing from it, the better the eventual passive income stream could be.

Keep reviewing the plan

The final step is to review the holdings regularly.

That does not mean trading constantly. But it does mean checking whether the original reason for owning each share still makes sense.

If earnings weaken, debt rises, or the dividend starts looking stretched, it may be time to reconsider. Passive income investing still needs active attention from time to time.

Foolish takeaway

A $1,000 monthly passive income stream is not built by chasing the highest dividend yield on the market.

I think the better approach is to build gradually, focus on dividend quality, reinvest along the way, and let the income base grow over time.

Once the portfolio reaches around $240,000 and can produce an average yield of 5%, that $12,000 annual target becomes achievable. The real challenge is having the patience to build it properly.

The post 5 steps to bring in $1,000 per month in passive income appeared first on The Motley Fool Australia.

But which ones could be top buys as we head into June? Let's look at three that offer attractive dividend yields. They are as follows:

Dicker Data Ltd (ASX: DDR)

The first ASX dividend share to look at is Dicker Data.

It is a technology distributor that connects many of the world's largest hardware, software, cloud, and cybersecurity vendors with resellers across Australia and New Zealand.

This may not sound as exciting as a fast-growing software company, but it is an important part of the technology supply chain. Businesses still need devices, networks, cloud infrastructure, security tools, and ongoing support to keep operating efficiently.

Dicker Data has built a strong position by offering a broad product range, deep vendor relationships, and service levels that make it valuable to both suppliers and resellers.

The company is not immune from weaker technology spending or margin pressure. But over the long term, rising demand for digital tools, cloud adoption, and cybersecurity should support its market opportunity.

Dicker Data shares currently trade with a fully franked trailing 4.4% dividend yield.

Magellan Infrastructure Fund (ASX: MICH)

Another ASX dividend share that could be worth a look is Magellan Infrastructure Fund.

This is not a traditional dividend share. It is an ASX-listed active ETF that invests in global infrastructure companies, with currency hedging designed to reduce the impact of exchange rate movements.

Infrastructure can be useful for income investors because many assets provide essential services. This can include electricity networks, toll roads, airports, water utilities, and communications infrastructure.

These businesses are often supported by long-life assets, regulated returns, contracted revenue, or strong market positions. That can give the fund a more defensive income profile than many cyclical sectors.

The Magellan Infrastructure Fund currently trades with a trailing 3.3% dividend yield.

Rural Funds Group (ASX: RFF)

A third ASX dividend share to consider is Rural Funds.

It owns a diversified portfolio of agricultural assets, including properties used for cattle, almonds, macadamias, vineyards, and cropping.

These assets are leased to high-quality operators, which means Rural Funds is more focused on collecting rental income than running farming operations itself. That gives it a different risk profile from traditional agricultural businesses.

Long leases, exposure to real assets, and demand for productive farmland all support the investment case. The company also gives investors access to a part of the market that is very different from banks, miners, and retailers.

Its guidance for FY 2026 implies a dividend yield of 5.9%.

The post 3 top ASX dividend shares to boost your passive income in June appeared first on The Motley Fool Australia.

I've selected three which look interesting, and which the broker has differing recommendations for.

Let's have a look at what they're saying.

Eagers Automotive Ltd (ASX: APE)

This automotive dealer held its annual general meeting this week, during which Chief Executive Officer Keith Thornton updated the market as to how the year was going so far.

Mr Thornton said while the company remained mindful of external uncertainty, "the underlying performance of the business is strong''.

Mr Thornton said turnover was up about 5% on the same period last year and order intake was at record levels.

The company was actually getting more orders than it could fulfil, he said, with supply constraints the bottleneck.

And Eagers' used car business had enjoyed a record start to the year, Mr Thornton said, with pre-tax profit up 40%.

He added:

We expect to report an underlying profit before tax result for the first half of 2026 in line with, or slightly ahead of, the first half of 2025 across our Australia and New Zealand operations. In addition, two months of trading contribution from CanadaOne Auto will position us to deliver a record first half at a consolidated level. Looking to the second half, the outlook is positive. We expect an uplift in deliveries, supported by improved supply through our scaled partnership with Toyota following a materially constrained first half. Our substantial order bank and continued demand for new energy vehicles will further underpin second half performance.

Macquarie has an outperform rating on Eagers shares, with a price target of $27.10 compared to $20.69 currently.

Macquarie said CanadaOne remained a "compelling" long-term growth opportunity and Eagers' order book was strong.

Dicker Data Ltd (ASX: DDR)

Dicker Data also held its annual general meeting this week, with Executive Chair Fiona Brown saying the company had entered CY26 with strong momentum.

Ms Brown said the first four months of the year delivered "a robust result that reflects both healthy underlying demand and the benefits of strategic investments made across the business in FY25''.

She added:

Looking ahead, the Company expects the traditionally robust Australian end-of-financial-year trading period to support continued momentum through the first half. Beyond the first half, second half performance is expected to reflect more typical market conditions, including the impact of changes to vendor pricing strategies in conjunction with elevated inventory replenishment costs. While these factors may result in reduced unit demand, our absolute revenue demand expectation remains strong.

Macquarie has a neutral rating on Dicker Data shares and a price target of $10.35 compared to $9.98 currently.

Endeavour Group Ltd (ASX: EDV)

Endeavour Group shares are trading near their 12-month low at the moment, following the company this week announcing a new strategy and a plan to deliver $300 million in cost savings by 2029.

Part of the new strategy involves Endeavour selling off most of its winery portfolio and refocusing investment in its hotels network.

The company also widened its dividend payout ratio from 70% to 75% of net profit to 50% to 75%.

Macquarie has an underperform rating on Endeavour shares, saying "we still expect market is underestimating reinvestment and earnings downside in key transition year''.

Macquarie has a price target of $2.80 on Endeavour Group shares compared with $2.84 currently.

The post Buy, hold, sell: Eagers, Dicker Data and Endeavour Group shares appeared first on The Motley Fool Australia.

When a hospital buys AI diagnostic software, when a bank deploys a new cybersecurity platform, or when a business installs a new data centre rack, who actually makes that transaction happen?

Not the software company, nor the hyperscaler.

The answer, in Australia and New Zealand, is often Dicker Data Ltd (ASX: DDR).

The Sydney-based technology distributor sits in the middle of the entire AI infrastructure supply chain, connecting more than 10,000 reseller partners with the world's leading technology vendors.

It is an unglamorous position, but also an extraordinarily promising one.

What happened at the AGM this week

Dicker Data jumped 8% on Wednesday after AGM commentary confirmed the strong FY26 momentum investors had been hoping for.

Unaudited gross revenue for the first four months of FY26 rose 13.4% to $1.27 billion. Net profit before tax jumped 45.5% to $47.3 million.

Management attributed the result to elevated endpoint demand, software growth, and data centre refresh activity across enterprise customers.

CEO and Executive Chair Fiona Brown said those drivers were accelerating rather than slowing, pointing to further growth ahead.

That is a meaningful upgrade to sentiment for a stock that had been down 6% in 2026 before Wednesday's session.

A new growth vector that many investors have missed

On 21 April 2026, CrowdStrike announced an expansion of its Managed Security Service Provider strategy across Japan and Asia Pacific, naming Dicker Data as a key distributor to onboard and support MSSPs delivering AI-driven Falcon platform security to small and medium-sized businesses.

This appointment deepens Dicker Data's role from hardware distributor to a recurring, higher-margin cybersecurity services platform, capturing a slice of CrowdStrike's extraordinary momentum.

CrowdStrike itself just reported its best year on record, with its founder and CEO George Kurtz stating:

As enterprises rapidly adopt AI, CrowdStrike is mission-critical infrastructure. The AI revolution is creating a massive growth opportunity, one that our technology, team, and ecosystem are well positioned to continue winning.

Every dollar of that CrowdStrike growth in Asia Pacific now flows partly through Dicker Data's distribution network.

The macro backdrop is supportive

Gartner projects Australian IT spending to reach $172.3 billion in 2026, up 8.9% year on year.

Every dollar of enterprise AI spending in Australia creates demand for the hardware, software licences, and infrastructure products that Dicker Data distributes.

The Windows 10 end-of-life refresh cycle is also adding a meaningful volume tailwind as businesses replace ageing endpoints with AI-capable hardware.

The valuation and risks

Dicker Data trades on a price-to-earnings (P/E) ratio of approximately 20 times, a material discount to the peer average of 41 times for technology distributors globally.

Jarden carries a buy rating with an $11 price target, while Wilsons Advisory is overweight with an $11.07 target, both implying meaningful upside from the current price of around $9.64.

The stock pays fully-franked quarterly dividends, with a trailing yield of approximately 4.7%, adding an income dimension that is rare among technology stocks.

The main risk is margin pressure.

Dicker Data operates on thin margins of approximately 3.3%, and a shift toward larger, more competitive enterprise deals has squeezed profitability even as revenue has grown.

Any slowdown in enterprise AI spending would hit volumes quickly.

Foolish Takeaway

Dicker Data is an exciting ASX tech stock.

The company sits at the intersection of every AI transaction in Australia and New Zealand and takes a margin on each one.

As Australian enterprise AI spending accelerates toward $172 billion, that position looks increasingly valuable.

At 20 times earnings with a 4.7% fully-franked yield, this ASX tech stock is priced like a mature distributor rather than a beneficiary of one of the biggest technology investment cycles in history.

The post This ASX tech stock could be one of the most overlooked AI infrastructure plays on the market appeared first on The Motley Fool Australia.

Amazon Web Services will invest $20 billion in Australian data centres by 2029.

Microsoft went further, committing $25 billion to Australian AI and cloud infrastructure.

This is the largest single corporate technology investment in the Australia's history.

Yet three ASX-listed companies sitting directly in the path of that investment remain surprisingly under-owned by retail investors.

Goodman Group (ASX: GMG)

The data centre story starts with land, power, and location.

Goodman Group controls all three.

The industrial property giant has transformed itself from a logistics warehouse owner into one of the most important data centre developer in the Asia-Pacific region.

Data centres now make up 73% of Goodman's development pipeline.

This is on track to reach $18 billion by June 2026, up from $14.5 billion at 31 March.

The company has assembled a power bank of 6.4 gigawatts across its global network, a resource that has become extraordinarily difficult to replicate as power access emerges as the key constraint on data centre expansion worldwide.

Morgans this week retained its buy rating on Goodman with a $36 price target, highlighting that its work in progress is expected to be ahead of consensus forecasts at the end of June.

Crucially, Morgans noted that management believes industry data centre capital expenditure requirements likely exceed global capital market funding capacity.

This view points to a sustained period of pricing power for those who already hold secured power, sites, and locked-in capital partners.

Goodman is positioned beautifully here.

NextDC Ltd (ASX: NXT)

If Goodman builds the shells, NextDC Ltd operates what goes inside them.

The company is Australia's largest independent data centre operator, providing colocation, cloud connectivity, and managed services to enterprises, cloud providers, and government agencies across 14 facilities nationally.

In the first half of FY2026, NextDC reported net revenue growth of 13% to $189.2 million, with contracted utilisation surging 137% to 416.6MW and a forward order book of 296.8MW expected to convert into revenue through to FY2029.

Management guides billing utilisation to grow 2.7 times by FY2027 and 3.4 times by FY2028, underpinned by its existing forward order book of contracted but not yet billed capacity.

NextDC has raised its FY2026 capital expenditure guidance to between $2.7 billion and $3.0 billion, up from $2.4 billion previously.

Contracted utilisation surged 60% to 667MW in the March 2026 quarter alone, driven by massive wins at its S4 Sydney development

A compounded annual growth rate in operating earnings of more than 40% is expected between FY2025 and FY2028 as that contracted capacity converts to revenue.

Dicker Data Ltd (ASX: DDR)

The third name in this list is the least obvious but arguably the most interesting from a valuation standpoint.

Dicker Data is Australia's largest technology distributor, connecting more than 10,000 reseller partners with leading technology vendors across hardware, software, cybersecurity, and AI infrastructure.

Every data centre that gets built creates demand for the racks, servers, networking equipment, and software licences that Dicker Data distributes.

For the first four months of FY2026, Dicker Data reported gross revenue growth of 13.4% to $1.27 billion and a 45.5% jump in net profit before tax to $47.3 million.

This was driven by elevated data centre refresh and AI infrastructure demand.

Despite that momentum, Dicker Data trades on approximately 20 times earnings.

This is a steep discount to the global technology distribution peer average of 41 times.

As a result, the company pays a fully franked quarterly dividend yielding approximately 4.7%.

Jarden carries a buy rating with an $11.00 price target, implying good upside from current levels.

The risks

None of these three ASX shares are risk-free.

Goodman and NextDC both carry significant capital expenditure commitments and are sensitive to interest rate movements given their asset-heavy models.

Dicker Data operates on thin margins and is exposed to any slowdown in enterprise technology spending.

All three have already run hard in recent years, which limits the margin of safety at current prices.

Foolish takeaway

The data centre boom is happening right now, with $25 billion of committed investment flowing into Australian digital infrastructure over the next five years.

Goodman owns the land and the power, NextDC operates the facilities, and Dicker Data distributes the technology that fills them. For investors who believe AI-driven data centre investment will keep accelerating, all three of these ASX shares deserve serious attention.

The post 3 ASX shares riding the data centre boom that investors keep overlooking appeared first on The Motley Fool Australia.

At the time of writing, the benchmark index is up 0.21% to 8,675 points.

The move isn't huge, but it's notable given the market was under pressure earlier in the session.

The ASX 200 traded as low as 8,625.8 points before recovering after the April inflation numbers landed.

The index is still down 0.44% in 2026 and around 1.26% over the past month. Over the past year, however, it remains up about 3.19%.

Inflation gives investors a reason to buy

The Australian Bureau of Statistics (ABS) said annual inflation eased to 4.2% in April, down from 4.6% in March. The fall was helped by lower automotive fuel prices, which dropped 7% over the month after the federal fuel excise cut.

That was enough to settle some nerves after a weaker start to the session.

Lower headline inflation can reduce pressure on the Reserve Bank of Australia (RBA) to keep lifting interest rates.

It also helps explain why investors were more willing to buy stocks after the data was released.

But the report wasn't all good news.

Trimmed mean inflation, which strips out some volatile price moves, rose to 3.4% over the year. That was up from 3.3% in March and remains above the RBA's 2% to 3% target band.

Why the RBA question is not settled

Today's inflation update may reduce the chance of another rate rise in June, but it doesn't close the door on more tightening later this year.

The RBA has already lifted the cash rate 3 times this year, taking the cash rate target to 4.35%.

That is already putting pressure on households, especially mortgage holders rolling onto higher repayments.

The problem for the RBA is that the headline inflation number is only one part of the picture.

Annual inflation has eased, but the underlying measure is still moving the wrong way.

It also explains why the market reaction has been positive, but not overly excited.

Investors have enough in the numbers to justify some buying today. They do not have enough to assume the inflation fight is finished.

Banks weigh while tech helps

The recovery has not been spread evenly across the market.

The major banks are still dragging on the index, with Commonwealth Bank of Australia (ASX: CBA) shedding 0.60% to $163.32, Westpac Banking Corp (ASX: WBC) down 1.46% to $36.08, National Australia Bank Ltd(ASX: NAB) slipping 1% to $37.23, and ANZ Group Holdings Ltd (ASX: ANZ) edging 0.98% lower to $35.31.

Tech shares are doing more of the heavy lifting.

Dicker Data Ltd (ASX: DDR) is surging 7.86% to $9.61, Megaport Ltd (ASX: MP1) is climbing 7% to $14.75, and Siteminder Ltd (ASX: SDR) is up 6.5% to $3.04.

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The ASX tech distributor is up a sizeable 8.19% to $9.64 at the time of writing.

Today's buying follows fresh commentary on FY25 earnings, dividends, and the company's early FY26 trading.

Nonetheless, it has still been an uneven year for the stock.

Dicker Data shares are down around 6% in 2026, even after today's rally. But zoom out a little further, and the shares are up about 16% over the past 12 months.

The company sits in the middle of the technology supply chain, distributing hardware, software, cloud, access control, surveillance, and emerging technology products.

It also works with more than 10,000 reseller partners across Australia and New Zealand.

So, what has investors buying today?

FY25 numbers beat guidance

The company told shareholders that FY25 was a strong year, with results exceeding its guidance range.

Gross revenue rose 14.9% to $3.9 billion, helped by growth in software, endpoint solutions, PC refresh, and infrastructure.

Recurring gross sales increased 22.4% to $1.1 billion.

EBITDA lifted 6.1% to $159.4 million, while net profit before tax surged 8.8% to $124.7 million.

Earnings per share (EPS) came in at 47.4 cents, up 8.6% on the previous corresponding period.

It is worth noting that the Australia business did most of the heavy lifting.

Australian gross revenue rose 17.2% to $3.28 billion, while New Zealand gross revenue increased 3.6% to $581.2 million.

Dicker Data also pointed to a healthier balance sheet, with net debt falling by $12.8 million to $93 million.

Dividends stay in focus

Income investors also had something to cheer about in today's update.

Dicker Data said its final FY25 dividend of 11.5 cents per share was paid in March.

That took total dividends in respect of FY25 to 44.5 cents per share.

The company has also revised its dividend policy to a payout range of 80% to 100% of net profit after tax.

The first interim FY26 dividend of 11.5 cents per share was declared on 12 May and is due to be paid on 2 June.

Why investors are getting excited

The strongest part of today's update was the FY26 trading commentary.

Dicker Data said unaudited gross revenue for the first 4 months of FY26 rose 13.4% to $1.27 billion.

The company said the result was driven by elevated endpoint, software, and data centre refresh demand.

Net profit before tax jumped 45.5% to $47.3 million.

Management said this reflected margin improvement and the sale of existing inventory during the period.

The company also expects FY26 results to reflect strong year-to-date momentum, with growth across key areas.

The post This ASX tech share is rocketing 8% after a big AGM update appeared first on The Motley Fool Australia.

With that in mind, here are two top ASX dividend shares that brokers think could be in the buy zone this month:

Dicker Data Ltd (ASX: DDR)

Dicker Data is an ASX dividend share that has built a strong position in the technology distribution market.

The company distributes hardware, software, cloud, cybersecurity, and other technology products for many of the world's largest vendors. This gives it exposure to the ongoing digital investment needs of businesses across Australia and New Zealand.

One positive with Dicker Data is the essential nature of its role in the technology supply chain. Vendors rely on the company to reach resellers, while resellers use its platform, product range, and support to serve business customers.

This has helped Dicker Data generate solid earnings and cash flows over the years. It also has a history of paying regular dividends, which has made it a popular name with income-focused investors.

The technology sector can still be cyclical, particularly when businesses delay spending or margins come under pressure. But over the long run, demand for cloud, security, networking, and enterprise technology should continue to support the company's market opportunity.

UBS is bullish on the company and has a buy rating and $11.30 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 47 cents per share in FY 2026 and then 51 cents per share in FY 2027. Based on its current share price of $8.91, this equates to dividend yields of 5.3% and 5.7%, respectively.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre may not be the first name investors think of for dividends, but it has the potential to become an attractive income option as travel conditions normalise.

The company is one of the best-known travel businesses on the ASX, with exposure to both leisure and corporate travel. While the leisure side remains important, the corporate travel division has become a key part of the investment case.

Corporate travel can provide repeat business, scale benefits, and a stronger platform for earnings growth if travel activity continues to recover. Flight Centre has also spent recent years reshaping its cost base and improving the efficiency of its operations.

This means that as revenue grows, there is scope for a greater portion of that improvement to flow through to earnings. Stronger profits can then support higher dividends, provided management remains comfortable with the balance sheet and outlook.

Morgans is a fan of the company and recently put a buy rating and $14.50 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 41 cents per share in FY 2026 and then 47 cents per share in FY 2027. Based on its current share price of $9.88, this would mean dividend yields of 4.1% and 4.75%, respectively.

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The key is finding companies that have the cash flow to support dividends over time.

With that in mind, here are five ASX dividend shares that could be worth considering.

CSL Ltd (ASX: CSL)

CSL has not been viewed as a traditional income stock for most of its history.

That has changed after a brutal 12 months for the biotech giant. Its share price weakness has caused a major earnings multiple contraction, lifting its forecast dividend yield to approximately 4% this year and next.

The company still has plenty to prove after a difficult period. But CSL remains a global healthcare leader with strong positions in plasma therapies, vaccines, and specialist medicines.

For investors willing to accept turnaround risk, CSL now offers a much more meaningful income profile than it has in the past.

Dicker Data Ltd (ASX: DDR)

Dicker Data offers income exposure from the technology supply chain.

The company distributes hardware, software, cloud, and cybersecurity products across Australia and New Zealand. This places it between major global vendors and the resellers that serve business customers.

Dicker Data has historically paid out a large portion of earnings as dividends. That makes profit performance important, but it also means shareholders can benefit when trading conditions are supportive.

With ongoing business investment in technology, Dicker Data remains an ASX dividend share with a different driver from the usual defensive names.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT owns convenience-based retail properties.

Its portfolio is focused on assets such as supermarkets, large-format retail, health and wellness, and essential services. These are areas where customer demand tends to be more resilient than discretionary shopping.

This gives the trust a practical income profile. Rent is supported by tenants that serve everyday needs, while the property base is spread across a range of locations.

For investors seeking income from real estate without relying on office towers or large shopping centres, HomeCo Daily Needs REIT could be worth a closer look.

Telstra Group Ltd (ASX: TLS)

Telstra Group remains one of the ASX's best-known dividend shares.

The telecommunications giant benefits from a large customer base, essential services, and recurring revenue from mobile and broadband customers.

Its mobile network remains a key competitive strength. Demand for data continues to grow, and connectivity has become a basic requirement for households and businesses.

This gives Telstra a defensive quality that supports its appeal as an income share.

Woolworths Group Ltd (ASX: WOW)

Finally, Woolworths Group offers another defensive income option.

The supermarket operator benefits from recurring demand for groceries, with millions of customers shopping across its stores and digital channels each week.

Margins can still be affected by competition, wages, and supply chain costs. But Woolworths' scale and market position give it resilience through different economic conditions.

For income investors, this ASX dividend share offers exposure to everyday spending rather than cyclical demand.

The post 5 excellent ASX dividend shares to buy with $50,000 appeared first on The Motley Fool Australia.

Since then, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has recovered by 12%.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) has risen 2.1% over the same period.

Let's look back and see what happened to the share prices of the top 10 ASX tech shares during the downturn.

Then, let's compare that data to the performance of BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC).

Given the popularity of exchange-traded funds (ETFs) these days, I'm curious as to whether the only ASX tech ETF tracking Australian technology shares alone provided any protection against the sector downturn.

One of the appeals of ETFs is that they represent a basket of stocks. This can reduce the impact of a large price drop in a single stock.

But what if a whole sector falls? Does the structure of ASX ETFs provide any protection for investors?

Let's conduct a litmus test.

Top 10 ASX tech shares

As stated earlier, the S&P/ASX 200 Information Technology Index fell 48% between 29 August and 30 March, and has rebounded 12% since.

Let's compare that to the share price falls and recoveries of the top 10 tech shares on the market.

How did ATEC ETF do?

The ATEC ETF fell 42% between 29 August and 30 March compared to the 48% drop for the S&P/ASX 200 Information Technology Index.

Since then, ATEC ETF has recovered 8% compared to a 12% lift for the ASX 200 Info Tech Index.

So, the fall was not as bad with ATEC ETF during the tech rout, but the recovery has not been as fast as the ASX 200 tech sector.

Interesting.

ATEC tracks the S&P/ASX All Technology Index (before fees and expenses).

It's the only option for investors who want exposure to Australian technology through an ASX ETF.

However, it's important to know that the S&P/ASX All Technology Index is different to the S&P/ASX 200 Information Technology Index.

The ASX 200 Info Tech Index is comprised of the top 200 tech companies ranked and weighted by market capitalisation.

The All Tech Index is much smaller, comprised of just 45 companies, and only 56% are technically in the tech sector.

The others are from the communications, industrials, healthcare, and financial sectors, but their operations are heavily tech-related.

For example, the largest holding in ATEC is ASX 200 industrials share, Computershare Ltd (ASX: CPU) at 10%.

The fourth biggest holding is Car Group Limited (ASX: CAR), which is a communications sector share, at 8.9%.

The owner of realestate.com.au, REA Group Ltd (ASX: REA), is the sixth biggest holding at 7.5%. REA is also a communications share.

At No. 8 is ASX 200 healthcare share Pro Medicus Ltd (ASX: PME) at 6%.

At No. 9 is another communications share, Seek Ltd (ASX: SEK) at 4.2%.

This diversity of sectors, along with the less volatile nature of ETFs, appears to have provided some protection during the tech sector rout.

The post ASX tech shares vs. ATEC ETF: How they fared during sector downturn appeared first on The Motley Fool Australia.

But where should you start?

Here are three ASX dividend shares that could be worth buying in May.

APA Group (ASX: APA)

The first ASX dividend share that could be a buy is APA Group.

It owns and operates energy infrastructure, including gas pipelines, storage assets, and related infrastructure across Australia.

The appeal here is that its earnings are tied more closely to contracted infrastructure usage than short-term movements in commodity prices. Gas still has a role to play in energy security, industrial demand, and firming electricity supply as renewable generation increases.

That gives APA a different type of income profile from traditional energy producers. It is more about the pipes and networks that move energy around the system.

With long-life infrastructure assets and contracted cash flows, APA remains a share that income-focused investors may want to keep on the radar.

Dicker Data Ltd (ASX: DDR)

Another ASX dividend share worth looking at is Dicker Data.

It is a technology distributor that connects major global vendors with resellers across Australia and New Zealand. Its partners include companies across hardware, software, cloud, cybersecurity, and infrastructure.

This makes it a different income idea from the usual banks, telcos, and infrastructure names. Dicker Data sits in the middle of the technology supply chain, benefiting as businesses continue to spend on digital systems.

The company has historically returned a large portion of earnings to shareholders through dividends, making it one of the more generous dividend payers on the local market.

For investors comfortable with a more cyclical income stream, Dicker Data offers dividend exposure linked to technology spending rather than consumer spending.

Rural Funds Group (ASX: RFF)

A third ASX dividend share that could be a top pick for income investors is Rural Funds Group.

It owns agricultural assets, including farmland and related infrastructure, which are leased to high-quality operators across different parts of the agriculture sector.

This structure gives investors exposure to farmland income without having to operate farms directly. Rental income is the key driver, while the underlying assets remain connected to long-term demand for food and agricultural production.

Weather, interest rates, and tenant performance can all influence sentiment toward the stock. But for investors seeking income from a less conventional part of the ASX, Rural Funds offers something different.

The post Where to invest $5,000 into ASX dividend shares in May appeared first on The Motley Fool Australia.

Technology was the strongest of the 11 ASX 200 market sectors following a commanding lead from Wall Street.

The NASDAQ Composite Index (NASDAQ: .IXIC) has been on a tear in April and hit a new record high last week.

As of Friday's market close (Australian time), the NASDAQ had recorded 12 consecutive days of gains — its best run since 2009.

ASX 200 tech shares have followed suit, but not in a straight line. The sector has lifted 18.47% since the rebound began on 31 March.

It appears investors may have overcome their fears about artificial intelligence (AI).

Investors have fretted over large AI spending and the potential for AI tools like Claude to wipe out software-as-a-service (SaaS) providers.

These fears drove a near halving in the value of the S&P/ASX 200 Information Technology Index (ASX: XIJ) in just seven months.

You read that right — the tech index experienced an extraordinary 48% sell-off between 29 August and 30 March.

No other sector recorded significant gains last week amid the ongoing war in Iran and a major fire at one of Australia's two oil refineries.

Only five ASX 200 sectors finished the week in the green.

Let's recap.

ASX 200 tech shares led the market last week

The ASX 200's largest tech company, WiseTech Global Ltd (ASX: WTC), skyrocketed 22.72% to finish the week at $46.18 per share.

The Xero Ltd (ASX: XRO) share price leapt 14.72% to $81.98, while TechnologyOne Ltd (ASX: TNE) jumped 11.34% to $30.83.

NextDC Limited (ASX: NXT) shares rose 10.14% to $14.12 and Life360 Inc (ASX: 360) increased 9.6% to $21.35.

The Megaport Ltd (ASX: MP1) share price screamed 26.53% to $8.49.

Hansen Technologies Ltd (ASX: HSN) shares soared 9.37% to $5.02.

ASX 200 hotel booking platform provider, Siteminder Ltd (ASX: SDR), ripped 13.27% to $3.33 per share.

Nuix Ltd (ASX: NXL) shares stormed 10.96% higher to $1.26 apiece, while Appen Ltd (ASX: APX) rose 12.77% to $1.59.

The Weebit Nano Ltd (ASX: WBT) share price lifted 7.41% to $4.06.

Objective Corporation Ltd (ASX: OCL) shares lifted 6.97% to $11.82.

The Dicker Data Ltd (ASX: DDR) share price ascended 4.19% to $8.95.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

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The technology distributor currently offers a dividend yield of about 5.2%, with payments made quarterly, which is relatively uncommon on the ASX.

At the time of writing, the stock is trading around $8.52, leaving it down roughly 15% over the past month despite a modest intraday recovery.

That weakness may make the yield look more attractive, but investors still need to consider whether the income is worth the risk of being overly exposed to a single stock.

Why Dicker Data stands out for passive income

The biggest attraction here is the company's long track record of regular, fully-franked quarterly dividends.

Its most recent payment was 11.5 cents per share, paid on 19 March 2026. Across FY25, the business returned 44 cents per share.

The latest FY25 result also showed the core business remains in solid shape. Revenue increased 12.5%, gross profit rose 14.9%, and both EBITDA and NPAT moved higher. This gives the company a stronger base to keep paying reliable quarterly dividends.

That profit growth is important because dividends are only as reliable as the earnings behind them.

Dicker Data also recently updated its payout policy to distribute 80% to 100% of NPAT, down from the previous higher range, as management focuses on strengthening the balance sheet.

That is not necessarily a bad thing. A slightly lower payout ratio can make the dividend more sustainable during weaker periods and give the company more flexibility if technology spending slows.

The risk of going all in

The problem with putting 100% into Dicker Data is not the quality of the business. It is the lack of diversification.

Even though the company has built a strong position in IT distribution across hardware, software, cloud, cybersecurity, and AI infrastructure, it still operates in the technology sector, where earnings can be influenced by business spending cycles.

That can make earnings less stable, which in turn can make future dividend growth less reliable.

There is also stock-specific risk to consider.

If one major vendor relationship changes, margins come under pressure, or enterprise spending softens during a weaker economic period, shareholders are fully exposed when their portfolio is concentrated in a single company.

This is why even high-quality dividend shares are usually better held as part of a broader income portfolio, alongside exposure to banks, infrastructure, healthcare, and other sectors.

Foolish Takeaway

Dicker Data looks like a quality ASX tech share for passive income, especially for investors who value fully-franked quarterly dividends and exposure to long-term growth in IT spending.

But putting 100% into one stock still creates unnecessary risk, no matter how reliable the dividend history looks.

A more balanced approach would be to make Dicker Data part of a diversified passive-income strategy rather than the sole position.

The post Should I put 100% of my money into this ASX dividend stock for passive income? appeared first on The Motley Fool Australia.

It's a welcome reprieve for investors after the Australian-owned technology company's share price crashed 18% in late February to early March. There has been some recovery since the sharp sell-off, but the shares are still down 16% year to date.

What caused the Dicker Data share price crash?

There wasn't one sole factor which caused the ASX dividend stock to crash, but a combination of headwinds which all hit at the same time. 

Geopolitical uncertainty in the face of the escalating war in the Middle East caused a sector-wide sell-off earlier this month. At the same time, Australia is faced with the prospect of multiple cash rate increases as the Reserve Bank tries to get on top of soaring inflation.

The combination saw investors sell up their riskier stocks in sectors like technology, and shifted into safe-haven assets instead. 

Why is Dicker Data a good ASX dividend stock?

Despite the sharp investor sell-off over the past month, Dicker Data's fundamentals are still sound. In late February, the company announced a 12.5% increase in its statutory revenue for FY25 and a 14.9% increase in gross revenue. EBITDA and NPAT also increased by 5.9% and 8.8%, respectively.

The strong results meant the tech business could declare a final dividend of 11.5 cents per share, bringing fully franked dividends for FY25 to 44 cents. Management also confirmed a revised payout range of 80% to 100% of NPAT.

Not only does Dicker Data distribute a significant portion of its earnings to investors, but it also does so regularly. Unlike many other ASX dividend stocks, the company has paid a quarterly, fully franked dividend to its investors since 2016. That provides some strong cash generation.

Right now is a buying opportunity for investors

TradingView data shows that investors are mostly bullish on Dicker Data's outlook. Five out of eight analysts have a buy or strong buy rating on the ASX dividend stock, and another three have a hold rating.

Regardless, the consensus is for a strong upside over the next 12 months. The maximum target price of $12.50 implies a 47% upside at the time of writing. Even the minimum $10.30 target price implies analysts think the stock will soar 21%.

It looks like the ASX dividend stock's latest share price weakness has created a compelling buying opportunity for long-term investors seeking reliable income and growth.

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From infrastructure operators to financial services companies and real estate investment trusts, there are many businesses that generate reliable cash flows and return a large portion of those earnings to shareholders through dividends.

For investors looking to build a portfolio that produces steady income, here are three ASX income stocks that I think are worth considering right now.

Transurban Group (ASX: TCL)

Transurban is one of the most well-known infrastructure companies on the ASX and a favourite among income investors.

The company owns and operates major toll roads across Australia and North America. These assets are essential pieces of infrastructure that generate steady revenue from millions of drivers each year.

What I like about Transurban's business model is its predictability. Its toll roads operate under long-term concession agreements that allow toll prices to increase regularly.

Combined with higher traffic volumes from population growth and urbanisation, this has historically supported consistent earnings and distribution increases.

Because of this, Transurban has been able to deliver dependable income to investors over long periods and I expect this trend to continue in the future.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is a diversified investment management company that partners with a range of specialist fund managers.

Rather than running a single asset management business, Pinnacle provides distribution, operational, and strategic support to its affiliated investment boutiques. In return, it earns a share of the fees generated by those managers.

This model gives Pinnacle exposure to multiple investment strategies and markets, which can help diversify its earnings.

As funds under management grow across its affiliates, the company's earnings can increase as well. That growth has allowed Pinnacle to steadily increase its dividends over time.

For income investors who want exposure to the asset management sector, Pinnacle offers a combination of dividend income and long-term growth potential.

Dicker Data Ltd (ASX: DDR)

Dicker Data is one of Australia's leading technology distributors.

The ASX income stock acts as a key link between major global technology vendors and thousands of resellers across Australia and New Zealand. Its partners include some of the biggest names in the technology industry.

Despite operating in the technology sector, Dicker Data's business model is surprisingly stable. The company earns relatively small margins on a very large volume of product sales, which can produce steady cash flows.

That strong cash generation has allowed Dicker Data to build a reputation as a reliable dividend payer.

For investors seeking income, the company's consistent payouts and established market position make it an appealing option to consider.

Foolish takeaway

Reliable dividend income often starts with owning businesses that generate consistent cash flow.

Transurban's infrastructure assets, Pinnacle's growing funds management platform, and Dicker Data's established distribution network each support strong earnings and shareholder payouts.

Because of that, these three companies are among the ASX income stocks that I think are well worth a closer look right now.

The post 3 of the best ASX income stocks to buy now appeared first on The Motley Fool Australia.