ASX dividend shares are a powerful tool for investors to unlock significant passive income. I'll highlight two businesses that offer dividend yields significantly higher than what cash savings can.
Some of the great aspects of dividend-paying businesses are that they can simultaneously offer a high level of passive income and growth.
But I wouldn't advocate for going for the riskiest investment we can find. Instead, I'd look at businesses that have good prospects for longer-term earnings growth. It's earnings that will fund higher dividend payments in the future.
For me, the below two ASX dividend shares have a very compelling outlook for larger profits in the coming years.
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HomeCo Daily Needs REIT (ASX: HDN)
The business describes itself as an Australian real estate investment trust (REIT) with a mandate to invest in convenience-based assets across the sub-sectors of neighbourhood retail, large format retail, and health and services. It says it aims to provide unitholders with consistent and growing distributions.
It has total assets worth approximately $4.9 billion, spanning approximately 2.5 million sqm of land in the growth corridors of Sydney, Melbourne, Brisbane, Perth, and Adelaide.
The business is displaying pleasing rental metrics, with an occupancy rate of more than 99% in FY25. It also reported 4% comparable property net operating income (NOI) and 6% positive re-leasing spreads in FY25, demonstrating solid rental growth.
It's trading a little below its net tangible assets (NTA) of $1.47 as of June 2025, so it's pleasing to be able to buy a slice of the ASX dividend share at a discount.
In FY26, HomeCo Daily Needs REIT expects to grow its funds from operations (FFO – rental profit) per unit by 2.3% to 9 cents and increase the distribution per unit by 1.2% to 8.6 cents. At the time of writing, that translates into a forward distribution yield of 6.4%.
Accent Group Ltd (ASX: AX1)
Accent is an ASX retail share that sells footwear (and apparel) through a variety of brands. It owns some of the brands, including The Athlete's Foot, Glue Store, Stylerunner, Platypus, Hype, and Subtype. It also sells through a variety of global distributed brands, including Skechers, Ugg, Lacoste, Dickies, Timberland, Merrell, Saucony, Hoka, Vans, and Herschel.
I'm expecting an overall bounce-back of retail conditions following multiple RBA cuts this year, plus a substantial calming of inflation. But I'm particularly excited by the potential for the business to deliver significant profit growth from the rollout of dozens of Sports Direct stores in the coming years.
The Australia and New Zealand sports market is estimated at more than $5 billion, so that's a significant growth runway for the business to tap into. The Sports Direct offering comes with numerous Frasers-owned brands, including Everlast, Karrimor, Slazenger, Lonsdale, USA Pro, and Hot Tuna. Additionally, it has global brand partners including Nike, Adidas, New Balance, Puma, and Under Armour.
Accent aims to have the digital site and the first store open in the Fountain Gate shopping centre by November 2025. It wants to have at least four stores open by the end of FY26, with 50 stores planned for the first six years.
According to the forecast on CMC Markets, Accent could pay a grossed-up dividend yield of 7.8% in FY26 and 9.7% in FY27, including franking credits.
