When I'm searching for passive income, I want to ensure I'm looking at ASX dividend shares that can deliver a pleasing dividend yield but also provide growth. That's whether I'm investing $3,000 or $30,000.
A good business should be able to grow its earnings regularly over time, helping increase its underlying value and the ability to provide bigger payouts.
I like the value on offer of the three businesses I'll highlight below, while the prospects for strong payments look promising for the foreseeable future. I'd happily put $3,000 into them (or more) today.
Image source: Getty Images
Accent Group Ltd (ASX: AX1)
Accent is a retailer of footwear and apparel. It owns a number of its own brands, including The Athlete's Foot, Stylerunner, Nude Lucy, and Platypus. It also sells a number of global footwear brands, including Skechers, Vans, Ugg, Lacoste, Dickies, Hoka, Herschel, and plenty more.
The business is also working with Frasers to launch Sports Direct stores in the local economy, which is exciting because of the size of the stores and the additional brands it will be able to sell. Accent is planning to open dozens of stores over the next few years.
I think the Accent share price looks cheap because it's trading at under 9x FY27's estimated earnings with a potential FY27 grossed-up dividend yield of 12%, including franking credits.
If Australian consumers can benefit from lower inflation and lower interest rates, then spending at stores could increase.
Rural Funds Group (ASX: RFF)
Rural Funds is a compelling real estate investment (REIT) that owns different farms, including cattle, almonds, vineyards, macadamias, and cropping.
The ASX dividend share continues to trade at a significant discount to its underlying value, making it an appealing option for investors seeking bargains. It's currently trading at a discount of nearly 40% to its adjusted net asset value (NAV), allowing investors to gain exposure to an appealing portfolio at a relatively low price.
Rural Funds pays a distribution to investors each quarter, and it's benefiting from regular rental growth that's either fixed or linked to inflation. The guided distribution for FY26 translates into a forward distribution yield of 6.1%.
I think distributions can grow in the coming years as rental income improves, helping increase the underlying value.
MFF Capital Investments Ltd (ASX: MFF)
MFF is best known as a listed investment company (LIC) that invests in a global portfolio of quality, advantaged shares.
The ASX dividend share has built up its half-yearly dividend significantly over the last several years, and the board plans to hike the next payment to 10 cents per share. That means the FY26 grossed-up dividend yield will be at least 6%, including franking credits.
I liked that MFF recently took part in the L1 Group Ltd (ASX: L1G) capital raising. I'm bullish about L1, but it's also good to see that MFF is able and willing to make significant moves on investments of different sizes in different markets.
At the time of writing, it's trading at a 10% discount to the net tangible assets (NTA) as of 31 October 2025.
With a strong portfolio and ongoing diversification of its earnings, I think the business has a very good outlook.
