ASX income stocks are a wonderful subset of ASX shares that can provide investors with solid passive income. There are some that have an incredibly high dividend yield of more than 8%.
Businesses can make a good level of profit for investors and still pay large dividends, while retaining some earnings to re-invest in the business for more growth.
It's wise for investors to look at why the dividend yield is so large – the dividend payout ratio may be very high and/or the valuation may be low. Sometimes, businesses with large dividend yields can be misleading if last year's payout is large but next year's payout is expected to be much smaller due to some sort of deterioration.
The two ASX income stocks below have large yields and I think they can grow the payouts in the year ahead.
Shaver Shop Group Ltd (ASX: SSG)
Shaver Shop has more than 120 stores across Australia and New Zealand. It sells a wide variety of hair removal products such as electric shavers, clippers, trimmers, and wet shave items. It also sells products related to oral care, hair care, massage, air treatment, and beauty categories.
A key attraction of the business is that it sells multiple quality brands at what's described as competitive prices. The company's position in the market allows it to negotiate exclusive products with suppliers, giving the business a unique selling point for customers.
In the 2025 financial year, the business generated earnings per share (EPS) of 11.5 cents and cash EPS of 12.1 cents, allowing it to increase its annual dividend per share by 1% to 10.3 cents. That translates into a grossed-up dividend yield of 10.4%, including franking credits.
Pleasingly, the business has a good track record of annual dividend growth over the last several years, with FY24 being the only year in which the dividend was maintained.
I think the ASX income stock is on track to deliver further dividend growth with the potential for more stores, range expansion, new brand deals, and its own private brand's growth. In the first seven weeks of FY26, the company's total sales were up 2.7%, suggesting a good tailwind for profit growth in the first half of FY26.
Bailador Technology Investments Ltd (ASX: BTI)
Bailador is a very exciting company due to its investment strategy of acquiring stakes in small, fast-growing, unlisted technology businesses.
These technology companies have a number of positive attributes, including repeat revenue, appealing unit economics, a huge addressable market, and international expansion potential.
In FY25, its portfolio companies delivered revenue growth of 47%, with the valuations of numerous businesses increasing. For example, in FY25, Hapana saw a 50% valuation increase, DASH saw a 49% valuation increase, Rosterfy's valuation rose 14%, and Access Telehealth's valuation climbed 21%.
With those valuation gains, the ASX income stock aims to provide investors with a pleasing dividend yield.
Its target dividend payout ratio is a cash dividend payout ratio of 4% on the pre-tax net tangible assets (NTA), which translates into a grossed-up dividend yield of 5.7%, including franking credits.
However, the business is trading at a very large discount to its pre-tax NTA. At 31 August 2025, it had a pre-tax NTA of $1.97 and a post-tax NTA of $1.77. In the FY25 result, the company boasted of having a grossed-up dividend yield of 8.1%, including franking credits.
I think this ASX income stock is trading far too cheaply for its potential dividend income and the growth of the tech companies in the portfolio.
