Where to invest $10,000 in ASX dividend shares

If you have $10,000 to invest and want passive income, then it could be worth considering the three ASX dividend shares in this article.

Here’s what you need to know about these names:

Harvey Norman Holdings Ltd (ASX: HVN)

The first ASX dividend share to look at is Harvey Norman.

It is often viewed simply as a retailer, but there is more to the story than televisions, sofas, fridges, and laptops.

Harvey Norman is really a way to gain exposure to the household replacement cycle. People may delay big-ticket purchases when conditions are tough, but over time homes still need appliances, furniture, technology, bedding, and renovation-related products.

That gives the company exposure to spending that can recover when consumer confidence improves.

It also owns a substantial property portfolio, which gives the business a different shape from many other retailers. This property backing can add support to the investment case and gives Harvey Norman another source of value beyond store trading alone.

Harvey Norman trades with a forecast fully franked FY 2027 dividend yield of 6.4%.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be worth a look is Rural Funds.

It gives investors a way to own part of Australia’s agricultural infrastructure without having to directly operate a farm.

The group owns agricultural assets and leases them to operators, which means its investment case is more about rental income than trying to pick the next commodity price move.

That is a useful distinction for income investors. Agriculture is essential, but farming can be volatile. Weather, water availability, commodity prices, and operating costs can all affect returns. Rural Funds sits in a different position by owning the underlying assets and collecting rent from tenants.

It is forecast to provide a 5.7% dividend yield in FY 2026 and FY 2027.

Transurban Group (ASX: TCL)

A final ASX dividend share to look at is Transurban.

It owns toll roads in major cities across Australia and North America. These roads form part of the daily movement of commuters, freight operators, airport travellers, and businesses.

That gives the company a practical role in urban life. It is not selling something people buy on impulse. It owns infrastructure that many drivers use because it saves time or provides access to important routes.

This can support steady cash generation over the long term, which is what most income investors are looking for.

The market expects a 4.6% dividend yield from Transurban shares in FY 2027.

The post Where to invest $10,000 in ASX dividend shares appeared first on The Motley Fool Australia.

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• Why Karoon Energy, PLS, South32, and Transurban shares are falling today

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 positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Harvey Norman, Rural Funds Group, and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.