Transurban Group (ASX: TCL) shares have fallen to a fresh 52-week low on Tuesday.

The toll road operator is trading around $12.91, roughly 17% below its 52-week high of $15.62.

For investors looking for passive income, I think that decline is worth paying attention to.

Why I like Transurban for income

Transurban owns and operates major toll road networks in Australia and North America.

I think the nature of those assets makes the company particularly well suited to income investors. Roads such as CityLink in Melbourne and WestConnex in Sydney provide essential transport infrastructure, while traffic volumes and toll revenue give Transurban a substantial cash flow base.

That allows the company to return a meaningful amount of cash to shareholders.

Transurban paid dividends of 69 cents per share in FY26, and consensus forecasts point to continued growth from here.

According to CommSec, analysts expect dividends of 72 cents in FY27, followed by 73 cents in FY28 and 76 cents in FY29.

At the current share price, the FY27 forecast represents a dividend yield of approximately 5.6%. By FY29, the potential yield rises to almost 5.9% if those forecasts are achieved.

I think that looks attractive for an infrastructure business with the potential to gradually increase its dividends.

But what about rising interest rates?

This is probably the biggest issue I would consider before buying today.

Transurban can behave somewhat like a bond proxy.

Income-focused investors often value infrastructure businesses partly on the dependable dividends they can provide. When interest rates and bond yields rise, safer income investments can become more competitive, which can reduce the price investors are willing to pay for shares like Transurban.

There is also a more direct consideration. Infrastructure businesses typically carry substantial debt because of the enormous cost of building and acquiring assets. Higher interest rates can therefore increase financing costs over time.

That does not make Transurban identical to a bond. Its earnings can still grow as traffic increases, tolls rise, and the company develops its asset base. But I think rising rates help explain why investors may demand a higher yield before buying the shares.

At $12.91, that adjustment is starting to work in my favour.

Is the 52-week low a buying opportunity?

I think so. The lower share price means new investors are now receiving a much stronger potential dividend yield than they would have near the 52-week high.

Importantly, consensus forecasts are also pointing to distributions continuing to rise rather than falling.

There are still reasons to be cautious. Further interest rate increases could keep pressure on infrastructure valuations, while higher financing costs are something I would continue watching.

But I am investing for the passive income Transurban could produce over many years, rather than trying to pick the exact bottom in its share price.

Foolish takeaway

At $12.91, I think Transurban has become attractive for passive income investors.

A forecast FY27 dividend yield of around 5.6% gives me a solid starting return, while the prospect of gradual growth adds to the longer-term case.

Interest rates could keep the shares under pressure for a while yet. For me, though, that is also helping create the price at which I would be happy to start buying.

The post Down 17%, is this top ASX passive income stock a strong buy at its 52-week low? appeared first on The Motley Fool Australia.

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• Can Transurban shares rebound from a 52-week low?
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• 3 top ASX dividend shares to target this week for lifelong income

Motley Fool contributor Grace Alvino has positions in Transurban Group. 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 Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s safe to say that Life360 Inc (ASX: 360) and Xero Ltd (ASX: XRO) shares have had a year to forget.

As have their stockholders.

In late morning trade on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is down 0.1%, putting the benchmark Aussie stock market index down 2.1% in 12 months.

As for Life360, shares in the ASX 200 location-sharing software developer are down 1.9% today, trading at $18.95 each. This sees the Life360 share price down a sharp 64% since this time last year.

And Xero shares have had a similar bear run. At the time of writing, shares in the business and accounting software provider are up 1.5%, changing hands for $58.55 apiece. Despite the welcome intraday lift, shares remain down a painful 63% over the past 12 months.

What’s been pressuring the ASX 200 tech stocks?

Life360 and Xero shares have both faced similar headwinds.

First, there have been ongoing concerns that rapidly advancing AI systems might cheaply replace a lot of the services that Software as a Service (SaaS) stocks currently offer. Or the so-called ‘SaaSpocalypse’.

ASX tech stocks have also come under pressure as major economies across the globe, including the United States and Australia, ratchet up interest rates.

Growth-oriented shares like Xero and Life360 are generally priced with higher future earnings in mind. And as interest rates go up, so too does the present cost of investing in those future earnings.

And looking ahead, Fairmont Equities’ Michael Gable believes both these ASX 200 tech shares could face further headwinds in the months ahead (courtesy of The Bull).

Time to exit Xero shares?

“Xero is an accounting software provider,” Gable said. “In my view, potentially increasing bond yields and interest rates will continue to be a headwind for technology stocks, such as XRO.”

Summarising his sell recommendation on Xero shares, Gable said:

Fiscal year 2026 operating revenue increased 31 per cent on the prior corresponding period. However, net profit after tax fell 27 per cent. The gross margin declined from 89 per cent to 83.9 per cent.

From a charting perspective, selling pressure follows share price rallies, so the downtrend may not yet be over at this point.

Should I sell Life360 shares today?

Atop his bearish outlook on Xero shares, Gable also issued a sell recommendation on Life360 shares.

“This information technology company provides a mobile networking safety app for families,” he noted.

“The company posted a 38 per cent increase in revenue in the second quarter of 2026 when compared to the prior corresponding period. Total subscription revenue was up 31 per cent,” Gable added.

Explaining his sell recommendation on Life360 shares, Gable concluded:

However, the share price has fallen from $29.48 on August 10 to trade at $19.44 on September 24. We believe the business is vulnerable to increasing competition.

Any earnings disappointments moving forward may further pressure the share price. Investors may want to consider cashing in some gains.

The post Sell alert! Why this expert is calling time on Life360 and Xero shares appeared first on The Motley Fool Australia.

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• How much could the Xero share price rise in the next year?
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Motley Fool contributor Bernd Struben 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 Life360 and Xero. The Motley Fool Australia has positions in and has recommended Life360 and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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• Buy, hold, sell: BOQ, Harvey Norman, Lynas shares
• CBA vs Telstra: Which ASX blue-chip is better for passive income?
• Buy, hold, sell: Telstra, AGL, PLS shares
• 5 things to watch on the ASX 200 on Thursday

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.