ASX dividend shares can be great for passive income because of their willingness to send cash flow to investors every year.
Income investors may be looking for two different things from their investments: reliability or a high dividend yield. So, I'll talk about one stock that has provided resilient dividends and one that provides a high level of passive income.
Of course, dividends are not guaranteed. But some businesses appear to have more of a commitment to paying money to investors than others. So, let's get into those two ASX dividend shares.
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Sonic Healthcare Ltd (ASX: SHL)
Sonic Healthcare is one of the largest pathology businesses in Australia, as well as in other countries such as the UK, the US, Germany, Switzerland, and more.
People don't choose when to get sick, whether the economy is booming or in a recession. Therefore, I believe the business has very defensive earnings. But its profit is also growing over the long term, thanks to organic growth with ageing populations and new technology to help patients. It regularly boosts its scale by making acquisitions.
Impressively, the business hasn't cut its dividend in any of the last 30 years. It has grown its dividend in almost every one of those years, where there were just a few years of the payout being maintained in the 2010s. Its annual dividend has been increased each year since 2013.
Its FY25 interim dividend was hiked by 2.3% to 44 cents per share following a 15% increase in earnings per share (EPS) to 49.2 cents.
At the current Sonic Healthcare share price, it has a trailing dividend yield of 3.9%. I think this ASX dividend share is a very good starting point for income investors.
Bailador Technology Investments Ltd (ASX: BTI)
The other ASX dividend share I want to mention is Bailador, a company that invests in fast-growing technology businesses.
There is an underlying value of Bailador's portfolio of investments, which it tells investors about every month. At 30 June 2025, it had a pre-tax net tangible asset (NTA) value of $1.79.
The business has a stated goal to pay a dividend yield of 4% of the pre-tax NTA. However, due to the fact it's trading at a 35% discount to that June NTA, the dividend yield with full franking taken into account is 8.8%.
I'm confident Bailador's NTA can continue growing because of the types of businesses it has targeted. Those businesses are seen to have proven business models with attractive unit economics, international revenue generation, a huge market opportunity, and the ability to generate repeat revenue.
I think this ASX dividend share is very attractively priced and can provide strong dividend returns.
