Passive income is one of the big attractions of investing in ASX dividend shares.

If I had $20,000 available and wanted to increase the income coming from my portfolio, I would be looking for businesses that can support their dividends with dependable earnings and cash flow.

These are three ASX dividend shares I would consider today.

Telstra Group Ltd (ASX: TLS)

Telstra would be high on my list. The telecommunications giant provides services that millions of Australians use every day, which gives the business a relatively defensive earnings base.

That is a good starting point for a passive income investment. I want to have some confidence that the underlying business can keep generating the cash required to support its dividend through different economic conditions.

Telstra lifted its dividend to 21 cents per share in FY26, and expectations point to another modest increase to 22 cents in FY27. This represents a 4.6% dividend yield at current prices.

Another thing I like is its growth outlook. Telstra’s longer-term strategy is targeting continued earnings growth through to FY30, which could give the company more capacity to lift dividends over time if it delivers on those ambitions.

For me, that combination makes Telstra one of the ASX dividend shares I would be most comfortable owning for the long term.

APA Group (ASX: APA)

APA would provide a different type of income exposure.

The company owns a large portfolio of energy infrastructure, including gas pipelines, electricity transmission assets, and power generation infrastructure.

I like the nature of those assets for an income investment because much of APA’s revenue comes from regulated arrangements or long-term contracts.

That can provide greater visibility over future cash flows, which in turn helps support distributions to shareholders.

APA is also continuing to invest in its infrastructure network as Australia’s energy system evolves.

For income investors, I think that creates a nice balance. There is an established portfolio generating cash today, while new projects could support growth in the years ahead.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is my third pick.

The retailer operates across furniture, electronics, appliances, and other household categories, while its business also includes a substantial property portfolio.

I like the company for its strong financial position and the cash its operations can generate when trading conditions are supportive.

Harvey Norman has also demonstrated a willingness to return a meaningful portion of its profits to shareholders through dividends.

It is important to remember that retail earnings will naturally move with consumer spending, so I would expect more income variability here than I would from a telecommunications or infrastructure business.

But that cyclicality can also create opportunities to buy the shares at attractive prices when sentiment towards the consumer sector is weak.

I think that is the case now, with Harvey Norman shares trading close to their 52-week low and offering a forecast dividend yield of 7.1%.

Foolish takeaway

For me, passive income works best when the dividend is a result of a healthy business.

That is what I like about these three ASX dividend shares. Each has an established earnings base and a credible path to keep rewarding shareholders over time.

If I had $20,000 to put to work for income, I would be happy to start my search here.

The post Where to invest $20,000 in ASX dividend shares for passive income appeared first on The Motley Fool Australia.

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• How much is needed in superannuation to target a $10,000 monthly passive income?
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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group, Harvey Norman, and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Oil prices are climbing again on Tuesday after another volatile start to the week.

West Texas Intermediate (WTI) crude is currently up around 0.5% to US$93.05 per barrel.

Meanwhile, Brent crude has climbed 0.5% to US$105.83 per barrel.

Both have been on a strong run lately, with WTI up almost 50% over the past year and Brent gaining around 60%.

So, with tensions in the Middle East still pretty high, oil prices could have another big week ahead.

Let’s take a closer look.

US-Iran negotiations continue

There has been some movement in talks between the US and Iran.

Officials from both countries held separate discussions with mediators on Monday as efforts continue to bring the 7-month war to an end.

Iranian Foreign Minister Abbas Araqchi said Tehran is now waiting for a formal response from the US to its latest proposal.

The plan includes a halt to fighting, sanctions relief, and the unfreezing of Iranian assets.

In return, Iran would reopen the Strait of Hormuz and begin talks with the US over its nuclear program and uranium stockpile.

There has also been some improvement in oil flows from the Middle East.

Exports from major producers reached 12.8 million barrels per day in September, the highest level since February.

US oil reserves are getting low

Another thing to watch is how much oil the US has left in its Strategic Petroleum Reserve.

The US has been releasing millions of barrels from the reserve since the war began in an effort to keep more oil in the market.

That has pushed stockpiles down to around 285 million barrels, their lowest level in more than 40 years.

The reserve held almost 300 million barrels at the beginning of August, meaning around 15 million barrels have been released in less than two months.

The US has also been working with other countries to release emergency reserves during the conflict.

What happens next for oil prices?

I think oil prices could keep moving higher from here.

Brent crude has already moved above US$105 per barrel again, putting the US$110 level back within reach.

WTI is also holding above US$90 after briefly trading above US$96 on Monday.

Yes, a lot will depend on what happens with the latest US-Iran negotiations.

And while Middle East oil exports have improved this month, they remain below levels seen before the war.

For me, that leaves the oil market looking pretty tight.

I wouldn’t be surprised to see Brent test US$110 per barrel again this week if tensions remain high.

The post Oil prices rise again as Middle East uncertainty keeps traders guessing appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in junior technology company Stakk Ltd (ASX: SKK) rocketed almost 40% in early trade after it announced that the US Federal Bureau of Investigation would be using its signature verification technology.

Recent deal already paying dividends

Stakk recently merged with US company Parascript, which pushed its valuation past the $100 million mark,

The company said in a statement to the ASX on Tuesday that Parascript had been engaged to provide signature verification capabilities for the FBI.

The company added:

Stakk’s technology supports the assessment of physical signatures where authenticity or potential fraud is in question. The first phase of the FBI deployment is fully live. Work is now under way on a second phase that will add capabilities to locate and prepare reference signatures for the verification process.

Stakk said the commercial terms of the agreement were confidential, but it was expected to contribute meaningfully to the company’s FY27 revenue target, which is now expected to surpass $55 million.

The initial agreement runs until December 2027 and may auto-renew for subsequent 12-month terms thereafter.

The company said the agreement was a strong endorsement of its technology.

The engagement also establishes a live Law Enforcement deployment of Stakk’s technology. It demonstrates the relevance of the Group’s capabilities in a sector where the authenticity of signatures and documents can be critical and provides a foundation for Stakk to pursue further Law Enforcement opportunities. The need to establish authenticity extends across financial services, healthcare, insurance, telecommunications, and government. As AI-powered fraud grows more sophisticated, Stakk expects demand for these capabilities to increase. The Company sees opportunities with state and federal Law Enforcement agencies across the United States, as well as with agencies internationally.

Stakk Director Arthur Lo said the Parascript acquisition was already proving its worth, with the company providing services that were in demand across financial services, healthcare, government, law enforcement, and other regulated sectors.

He added:

As fraud grows more sophisticated, we see a substantial opportunity to bring these solutions to agencies in the United States and internationally. This engagement is a powerful example of why we recently brought the two businesses together.

Share price taking off

Stakk shares traded as high as 2.5 cents before settling back to be changing hands for 2.4 cents, up 33.3%.

The company was valued at $114.8 million at the close of trade on Monday.

Stakk said late last month that its $55 million revenue target for FY27 was already secured through recurring revenue under existing contracts.

The post Which ASX tech stock is up more than 30% after revealing a deal with the FBI? appeared first on The Motley Fool Australia.

More reading

• Oil prices rise again as Middle East uncertainty keeps traders guessing
• Expert names ‘undervalued’ ASX 200 healthcare stock to buy today
• Why I’d buy NAB shares in October
• This ASX tech company just surged past the $10 billion valuation mark after a major profit upgrade
• I’d buy 37,648 shares of this ASX stock to aim for $800 a month of passive income

Motley Fool contributor Cameron England has positions in Stakk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.