Certain ASX income stocks look particularly attractive right now because of their very high dividend yields.
I don't mind the recent share market volatility because it means lower share prices have pushed yields higher. For example, if a business had a dividend yield of 7% and the share price declined 10%, then the yield would become 7.7%. This effect has happened in recent weeks.
If I were trying to maximise my passive income for my ASX share portfolio, the two ideas below would be among the stocks I'd look at right now.
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Accent Group Ltd (ASX: AX1)
Accent is an ASX retail share that sells footwear from hundreds of stores.
It is a distributor of numerous global brands in Australia, including Vans, Hoka, Skechers, Herschel, Sebago, Merrell, Dr Martens, Ugg, Superga, Saucony, and Timberland. Dickies and Lacoste will commence in FY26. It has a number of its own businesses, including Platypus, The Athlete's Foot, Hype, Stylerunner, and more.
As the chart below shows, Accent shares have fallen 24% since 28 January 2025, which has boosted the potential dividend yield. According to Commsec, the business is projected to pay an annual dividend per share of 11.4 cents in FY25 – this translates into a grossed-up dividend yield of 9%, including franking credits.
I believe there is significant scope for the ASX income stock's earnings to grow in the coming years thanks to an economic rebound after high interest rates, rising organic sales, opening more stores with existing brands, and working with new brands (such as Lacoste).
One positive I'll point to is that in the first seven weeks of the second half of FY25, Accent's like-for-like sales grew by 2.2%.
Bailador Technology Investments Ltd (ASX: BTI)
Bailador is an investment company focused on technology businesses. It aims to invest in unlisted tech companies that are aiming for growth, are run by founders, have a "proven business model with attractive unit economics", generate international revenue, have the ability to generate repeat revenue, and have a "huge market opportunity".
The ASX income stock is invested in areas like hotel management and distribution software, financial advice and investment management software, digital healthcare, volunteer management software, an AI-enabled property investment platform, and more.
At 28 February 2025, the business had post-tax net tangible assets (NTA) of $1.61 and pre-tax NTA of $1.73. It's currently trading at a 27% discount to the post-tax NTA, which is a large discount.
It aims to pay a dividend yield of 4% of pre-tax NTA per annum (excluding franking credits). Due to the large NTA discount, the yield ends up being much higher. When the company announced its FY25 half-year result, its interim payout of 3.7 cents represented a fully franked dividend yield of 6% and a grossed-up dividend yield of 8%, including franking credits.
