second construction Income I think streams from ASX shares are something that a lot of investors will be aiming for over time.
Fortunately, there are plenty of businesses in the stock market that consistently produce cash flow and return some of it to shareholders dividend.
To narrow things down, I’ve picked five ASX dividend shares that I would consider for income.
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Rural Fund Group (ASX:RFF)
Rural Funds is an ASX dividend share I’ll be buying in April for second income. It has agricultural properties in areas such as almond, cattle and vineyard plantations.
Its earnings are supported by long-term leases with operators, which help provide visibility on earnings and distributions.
That structure is what stands out to me. This creates a steady income source that can support consistent payments over time.
Homeco Daily Needs REIT (ASX: HDN)
Another stock worth watching is Homeco Daily Needs. REIT. This property company focuses on convenience-based retail, including supermarkets and everyday services.
These are properties that see consistent foot traffic, which supports rental income.
For income investors, that stability can be attractive, especially when combined with a relatively attractive yield.
Harvey Norman Holdings Limited (ASX:HVN)
Harvey Norman offers a different type of income profile.
It operates in the retail sector, which may move with the cycle, although it also has a large property portfolio supporting the business.
This combination could support the dividend over time, with the added benefit of a potential upside if conditions improve.
Woolworths Group Limited (ASX: wow)
I think Woolworths is one of the most stable names on the ASX.
Its core supermarket business generates consistent cash flow, supported by demand in a variety of circumstances.
This translates into reliable and growing dividends, which I would look for in a second income portfolio.
Lottery Corporation Limited (ASX: TLC)
The Lottery Corporation rounds things out with another defensible income stream.
Its earnings are supported by lottery demand that remains stable no matter what is happening in the economy, which helps underpin regular and growing dividends.
The inclusion of such a business could add balance to more cyclical income names as well.
foolish solution
The second income from ASX shares comes back to owning businesses that can generate cash and pay dividends over time.
These five companies operate in different sectors, although each offers income exposure supported by underlying cash flows. This is what I would focus on when building a portfolio for a second income stream.
