There's something very satisfying about owning an ASX share that pays you just for holding it.
Passive income is one of the most appealing features of the ASX, and with the right mix of shares and exchange traded funds (ETFs), you can build a portfolio that works for you 24/7.
With that in mind, if you're looking for a few strong options to get started, here are three ASX shares that pay you to own them.
Accent Group Ltd (ASX: AX1)
Accent Group owns and operates a wide portfolio of popular footwear and apparel brands in the ANZ region including Skechers, HypeDC, Vans, and The Athlete's Foot. With over 800 stores and a large ecommerce footprint, it has been growing at a solid rate for many years.
The good news is that Bell Potter believes this trend can continue for some time. Particularly given the recently announced rollout of the Sports Direct brand.
Bell Potter expects this to underpin fully franked dividends of 10.2 cents per share in FY 2025 and then 12.7 cents per share in FY 2026. This would mean dividend yields of 5.1% and 6.4%, respectively.
The broker has a buy rating and $2.60 price target on its shares. This implies potential upside of 31% for investors over the next 12 months.
Rio Tinto Ltd (ASX: RIO)
If you're after big, fully franked dividends, Rio Tinto remains one of the most dependable payers on the ASX.
The global mining giant generates billions in free cash flow from iron ore, aluminium, and copper production. While commodity prices can be volatile, Rio Tinto's balance sheet strength and capital discipline allow it to return large portions of earnings to shareholders.
Goldman Sachs expects this to lead to fully franked dividends per share of US$3.64 in FY 2025 and then US$3.74 in FY 2026. This equates to dividend yields of 4.7% and 4.8%, respectively.
Goldman has a buy rating and $140.80 price target on its shares.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
Finally, if you prefer a more diversified, hands-off approach to passive income investing, then the Vanguard Australian Shares High Yield ETF could be the one. This ASX ETF tracks an index of high-yielding Australian companies.
This includes Rio Tinto along with 66 other ASX dividend shares such as Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS).
At present, this fund is paying an attractive 5.1% dividend yield in quarterly instalments.
