If income were the goal, I would want ASX dividend shares connected to assets people keep using.

That is why infrastructure can be a useful place to look. The best assets are difficult to replace, provide essential services, and can keep generating cash flow through different economic conditions.

Two ASX dividend shares I would consider buying are Transurban Group (ASX: TCL) and APA Group (ASX: APA).

Transurban Group shares

I think Transurban is one of the most interesting income shares on the ASX.

The company owns and operates toll roads in major cities, including Sydney, Melbourne, Brisbane, Greater Washington, and Montreal. These are not ordinary roads. They are important transport corridors in places where congestion, population growth, and time savings can make road access valuable.

That gives Transurban a rare type of asset base. A good toll road can remain useful for decades. It can be expensive to build, politically hard to approve, and difficult to duplicate once a city has grown around it. That scarcity is part of the investment appeal.

For income investors, Transurban offers exposure to cash flows linked to road usage. Traffic volumes can move with economic activity, work patterns, and cost-of-living pressures, but major urban roads can still sit at the centre of how people and goods move around.

The company is also expected to pay a distribution of 69 cents per security in FY26. That gives it a 4.5% forward dividend yield, which I think is attractive for investors looking for passive income.

Of course, Transurban is capital intensive. Debt, interest rates, regulation, traffic assumptions, and major project costs all need watching. But I think the company’s portfolio of toll road assets gives it a strong foundation for long-term income.

APA Group shares

APA is another ASX dividend share I would be happy to consider for income.

The company owns and operates energy infrastructure across Australia. Its assets include gas pipelines, processing and storage facilities, electricity transmission infrastructure, power generation, batteries, and renewable energy assets.

I think the appeal is the role these assets play in the energy system. Energy demand does not disappear just because the economy slows. Households, businesses, hospitals, factories, data centres, and transport networks all need reliable energy. APA’s infrastructure helps move and support that energy supply.

The company also sits in an interesting position as Australia’s energy system changes. Gas, firming power, storage, renewable generation, and transmission could all have a role to play as the country tries to balance reliability, affordability, and lower emissions.

For income investors, APA’s distributions are obviously a key attraction. The business has guided to a 58 cents per security distribution in FY26, which provides a solid 5.5% yield at recent prices.

Infrastructure owners can face pressure from debt costs, regulation, project spending, and changing energy policy. Still, I think APA’s long-lived assets and importance to Australia’s energy system make it a useful passive income candidate.

Foolish takeaway

A strong income portfolio should have cash flow with structure behind it.

That is what I like about Transurban and APA. One helps people and goods move through major cities. The other helps energy move through the economy.

There will be periods when interest rates, regulation, or market sentiment put pressure on infrastructure shares. That comes with the territory. But if the aim is to build passive income from assets with real-world importance, I think these two ASX dividend shares are worth a close look.

The post 2 ASX dividend shares I’d buy for passive income that can last appeared first on The Motley Fool Australia.

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• $5,000 buys 194 shares in these 2 top ASX dividend stocks
• How much do I need in my superannuation to get $1000 per week in passive income?
• Want passive income? These 3 ASX dividend stocks could deliver
• Transurban Group declares FY26 distribution; announces AGM date
• How I’d build $50,000 of ASX passive 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 Apa 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.

The team at Morgans has been busy looking at several ASX shares this week.

Is it bullish, bearish, or lukewarm on these shares? Let’s find out:

Amcor PLC (ASX: AMC)

Morgans is positive on this packaging giant but not quite enough for a buy rating.

It has put an accumulate rating and $65.40 price target on the ASX share. Based on its current share price of $58.58, this implies potential upside of approximately 12% for investors. It commented:

Following its merger with Berry Global in April 2025, AMC identified a non-core portfolio of ~US$2.5bn in revenue. These lower-growth or lower-margin businesses where AMC lacks scale or leadership positions are expected to be divested over time via cash sales or joint ventures/partnerships.

While there is a range of scenarios that can play out, using conservative assumptions, we estimate the combined non-core portfolio could be worth ~US$1.8bn. To date, AMC has reached agreements to sell six businesses for a combined value of ~US$500m. AMC plans to use proceeds from non-core asset sales to reduce leverage, which stood at 3.8x at the end of 3Q26. While management expects leverage to end FY26 at 3.4-3.5x, the stretched balance sheet remains a key investor concern. Our analysis indicates a strong negative relationship (correlation coefficient -0.76) between AMC’s leverage and its 1-year forward PE multiple. We therefore expect a reduction in leverage to support an improvement in AMC’s PE multiple over time.

Beach Energy Ltd (ASX: BPT)

This ASX energy share has been given a sell rating by Morgans this week with a reduced price target of 81 cents. This compares to its current share price of 86 cents.

The broker is bearish due to its belief that the company could fall short of expectations. It said:

We mark-to-market our second half estimates for weaker spot gas prices, while also trimming our Waitsia output forecasts for FY26-28 on continuing struggles. After downgrading our Q4 estimates for daily production rates, we see potential for BPT to fall just short of its FY27 group production guidance. While BPT’s share price has already been under pressure, its earnings outlook has declined at a faster rate, with its forward EV/EBITDA actually rising. We downgrade our recommendation to Sell (from Hold) with a revised target price of A$0.81 (was A$1.10).

Reliance Worldwide Corporation Ltd (ASX: RWC)

Although this plumbing parts company’s shares trade on undemanding multiples, it isn’t quite enough for anything more than a hold rating at present with a price target of $3.60. This is a touch lower than its current share price of $3.72.

The broker was positive on its decision to close its Australian brass operations. It said:

RWC has announced plans to close its Australian brass casting, forging and machining operations, along with several smaller sites, as part of its ongoing global footprint rationalisation program. We think the decision makes sense given RWC’s reduced reliance on Australian-sourced brass in recent years. Annualised net savings are expected to be ~US$9m by the end of FY27, with benefits in the Americas more than offsetting an adverse impact on APAC earnings. One-off costs of US$100-110m (including ~US$5m cash) are expected to be incurred in FY26.

We make no changes to underlying assumptions, with changes to earnings forecasts reflecting the one-off costs in FY26 and net benefits expected across FY27 and FY28. RWC’s valuation remains undemanding (12.8x FY27F PE) and recent developments related to the Middle East conflict should be positive for the global macroeconomic outlook. However, US housing demand remains subdued with 30-year fixed mortgage rates still around 6.5%. The timing of a recovery in housing activity remains uncertain and we therefore maintain our HOLD rating.

The post 1 ASX share to accumulate, one to hold, and one to sell appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to get $1000 per week in passive income?
• Here are the top 10 ASX 200 shares today
• Why Aurelia Metals, Beach Energy, IAG, and Rio Tinto shares are falling today
• 5 things to watch on the ASX 200 on Wednesday
• Buy, hold, sell: How does Morgans rate these ASX shares?

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building a portfolio does not need to be difficult.

With the right mix of ASX exchange traded funds (ETFs), investors can get broad exposure to Australian shares, global markets, and selected quality companies.

Here is one simple way to do it with just three investments.

iShares S&P 500 ETF (ASX: IVV)

The first ASX ETF to consider as part of this portfolio is the iShares S&P 500 ETF.

This fund can act as the global growth engine of the portfolio. It gives investors exposure to 500 large companies listed in the United States, which remains the deepest and most influential share market in the world.

That means the fund is connected to many of the businesses setting the pace in technology, healthcare, consumer products, financial services, industrials, and communication services. This includes Apple (NASDAQ: AAPL) and NVIDIA (NASDAQ: NVDA).

A key attraction of this fund is that it does not require investors to decide which US giant will win next. It spreads capital across a large group of market leaders and allows the portfolio to participate as corporate America keeps adapting, innovating, and expanding.

Vanguard Australian Shares Index ETF (ASX: VAS)

The Vanguard Australian Shares Index ETF could be another good addition to this portfolio.

It brings the portfolio back home. The fund provides exposure to a large basket of Australian shares, including banking giants, mining behemoths, healthcare companies, retailers, property groups, infrastructure businesses, and industrial names.

The Vanguard Australian Shares Index ETF also provides a source of income, as many Australian companies have a long history of paying dividends.

This gives the portfolio a different shape from a purely global strategy. It adds exposure to Australian profits, Australian dividends, and the domestic economy, while still spreading risk across a broad group of local companies.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT)

The final component of this portfolio could be the VanEck Morningstar International Wide Moat ETF.

This ASX ETF can add a more selective layer to the portfolio. It looks beyond Australia and focuses on international companies that are judged to have strong competitive positions and attractive valuations.

That makes it different from a standard index fund. Instead of simply following the biggest companies by market value, it tries to find businesses with advantages that may help protect profits over time. Those advantages can come from strong brands, valuable intellectual property, cost benefits, customer loyalty, or products that are difficult to replace.

This can give the portfolio exposure to companies that may be able to defend their market positions through changing conditions. It also helps broaden the portfolio beyond the Australian market and the US-heavy exposure investors may already get through IVV.

Foolish takeaway

It might be simple, but combining the IVV, VAS, and GOAT ETFs could give investors a winning three-ETF portfolio with global scale, local exposure, dividend potential, and a selective quality tilt.

The post How to build a winning ASX portfolio with just 3 investments appeared first on The Motley Fool Australia.

More reading

• VAS vs VSO: Do small-cap stocks beat the ASX 300?
• Where to invest $500 on the ASX right now
• Should I buy the NDQ ETF or the VAS ETF?
• The ASX investing strategy that could quietly make you rich
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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 iShares S&P 500 ETF. The Motley Fool Australia has recommended VanEck Morningstar International Wide Moat ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.