Buying ASX dividend shares at great value can be a smart move because of the size of the dividend yield.
There are plenty of appealing options that tell investors regularly about the net tangible assets (NTA) or net asset value (NAV) per share. Being able to buy at a large discount to that stated value can be a winning strategy, particularly if we believe that the NTA/NAV will grow in the coming years.
Below are two very compelling options, in my opinion.
Rural Funds Group (ASX: RFF)
The first business I want to talk about is a real estate investment trust (REIT) that owns a portfolio of farms across Australia, including cattle, vineyards, almonds, macadamias and cropping.
In the FY25 result, Rural Funds announced that its adjusted NAV was $3.08 at 30 June 2025. At the time of writing, that means it's trading at a discount of 34%. That's one of the largest discounts in the REIT sector.
The ASX dividend share is expecting to pay a distribution of 11.73 cents in FY26. At the time of writing, that translates into a distribution yield of 5.8%.
Rural Funds is benefiting from the organic rental growth the business has built into its contracts with high-quality tenants. Some of its contracts have annual increases linked to inflation while others have fixed annual increases, including market reviews.
As its rental earnings steadily increase, I'm expecting this to help fund larger distributions in the future.
Bailador Technology Investments Ltd (ASX: BTI)
Bailador is a leading technology investment company. It has invested in a number of small, private, promising tech businesses such as Updoc, DASH, Access Telehealth, Expedition Software, PropHer, Rosterfy and Hapana. It also has a stake in Siteminder Ltd (ASX: SDR) which has been a holding since it was a private business.
The ASX dividend share reported that its December 2025 pre-tax NTA was $1.95. At the time of writing, it's trading at a huge discount of 38%.
The businesses in its portfolio are growing revenue at a strong double-digit rate, which is helping drive their underlying value higher.
Bailador aims to find businesses that are founder-led, have proven business models with attractive unit economics, international revenue generation, have a huge market opportunity and have the ability to generate repeat revenue.
It aims to pay investors a dividend yield of 4% on the pre-tax NTA, excluding the franking credits. With the franking credits, that's a grossed-up dividend yield target of 5.7%.
But, Bailador trades at a big discount, so the grossed-up dividend yield is actually 9.2% (at the time of writing), including franking credits. That's a huge level of passive income for investors.
