If you are wanting to generate meaningful passive income from the share market, then it could be worth checking out the two ASX dividend shares in this article.
That's because analysts are tipping them to provide investors with dividend yields of approximately 7% to 11% in the near term. Here's what they are recommending as buys:
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Dexus Convenience Retail REIT (ASX: DXC)
The first ASX dividend share that could be a buy for passive income is Dexus Convenience Retail REIT.
It owns a portfolio of service station and convenience retail assets that are located across Australia and concentrated on the eastern seaboard. The company notes that its portfolio is leased to high quality tenants on attractive, long term leases.
Bell Potter believes that its shares are undervalued and highlights it as "one of [its] preferred ways to play externally managed REITs given its high distribution yield (c.7.1%), price discovery via asset sales (with >10% of the book recycled last 18m), yet trading at a -20% discount to NTA, despite NTA starting to regrow."
In respect to dividends, the broker is forecasting dividends of 20.6 cents per share in FY 2025 and then 20.9 cents per share in FY 2026. Based on the current Dexus Convenience Retail REIT share price of $2.97, this equates to dividend yields of 6.9% and 7%, respectively.
Bell Potter currently has a buy rating and $3.35 price target on its shares.
GQG Partners Inc. (ASX: GQG)
Another ASX dividend share that could be a buy for passive income is GQG Partners.
It is a global asset management company with a focus on active equity portfolios for investors. This includes many large pension funds, sovereign funds, wealth management firms and other financial institutions.
The team at Macquarie thinks that its shares are cheap at current levels. Last week, the broker highlighted that "At <9x NTM P/E with a >10% yield, valuation remains attractive."
Speaking of yields, the broker is forecasting some very big returns for shareholders in the near term. Macquarie is expecting GQG Partners to pay dividends of 15.2 US cents (23.1 Australian cents) per share in FY 2025 and then 16.7 US cents (25.3 Australian cents) per share in FY 2026. Based on its current share price of $2.16, this equates to dividend yields of 10.7% and 11.7%, respectively.
Macquarie currently has an outperform rating and $2.90 price target on its shares.
