Owning Commonwealth Bank of Australia (ASX: CBA) shares has been a rewarding investment recently; they've been up 33% in 12 months. However, the strong rally may mean that a significant portion of an investor's portfolio is now focused on the ASX bank share. There are other ASX passive income options worth considering.
It could be a wise idea to allocate future investments to different stocks, partly to avoid concentration risk and boost the portfolio's dividend yield because the CBA dividend yield is now quite low.
According to the independent forecasts on Commsec, CBA is projected to pay an annual dividend per share of $4.95 in the 2025 financial year. At the current CBA share price, the grossed-up dividend yield is 4.5%, including franking credits.
I think we can find stronger yields than that with the below two stocks.
Telstra Group Ltd (ASX: TLS)
Telstra is one of my favourite ASX blue-chip dividend stocks right now because the yield looks appealing, and the dividends are going in the right direction.
In the FY25 half-year result, the business decided to hike its interim dividend per share by 5.6% to 9.5 cents. That's an annualised grossed-up dividend yield of 6.5%, including franking credits. That's approximately two percentage points better than the CBA dividend yield for FY25.
The business is expected to continue growing its profit and dividend in the coming years. According to estimates from broker UBS, Telstra's annual dividend per share could rise to 27 cents by FY29, which would be a grossed-up passive income yield of 9.3%, including franking credits.
The telco can grow its profit in various ways, including adding mobile subscribers, increasing the mobile average revenue per user (ARPU), growing its wireless (5G-powered) broadband customer base, and improving its overall operating leverage.
MyState Ltd (ASX: MYS)
If investors want to increase their exposure to the banking sector but not through CBA shares, MyState could be a compelling option.
It's headquartered in Tasmania but has a presence in other states, particularly after acquiring Auswide Bank.
MyState doesn't have the same scale advantages as CBA, but it's a sizeable player and trades at a cheap valuation, enabling a good dividend yield.
In the recent result, it paid an interim dividend per share of 10.5 cents. That's an annualised grossed-up passive income yield of 7.3%.
The company delivered solid numbers, in my view, with customer deposits up 2.2% to $6.1 billion, home lending up 0.3% to $8 billion, and a steady net interest margin (NIM) compared to FY24.
According to the forecasts on Commsec for FY25, it's trading at 12x FY25's projected profit with a possible grossed-up dividend yield of 8.4%, including franking credits.
