Recently it has been well covered here at The Motley Fool that both the S&P/ASX 200 Index (ASX: XJO) and S&P 500 Index (SP: .INX) are trading close to all-time highs.
When valuations appear full, it can be a good time for investors to consider generating passive income through dividend shares.
Dividend shares can bring steady passive income should markets correct or stay flat.
Here are three options to consider with healthy yields right now.
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Argo Investments Ltd (ASX: ARG)
Argo is a listed investment company (LIC) with a diversified portfolio of more than 90 ASX-listed companies.
It has a healthy track record of consistent dividends dating back more than 20 years.
This aligns with its ethos, as it aims to provide shareholders with long-term growth as well as reliable dividend income.
Argo released its half-year results to 31 December 2025 on Monday.
The announcement included an interim dividend worth 18.5 cents per share for the first half of FY2026.
As Sebastian Bowen reported on Monday, this is a record high interim dividend for the company.
It's important to note the ex-dividend date for this payout has been set for this Friday, 13 February.
This means you need to have bought Argo shares by market close on Thursday to qualify for the payment.
The updated interim dividend means these ASX dividend shares now give the company a forward dividend yield of roughly 4.2%.
CAR Group Ltd (ASX: CAR)
Car Group is another ASX dividend stock that announced positive news for investors this week.
On Monday, the company also released half-year results, which included a bumped up dividend payment.
Car Group announced its next interim dividend will be 42.5 cents per share.
This is a significant jump from the interim dividend of 38.5 cents per share that investors saw last year.
The stock now has a forward dividend yield of 3.16%.
While 3.16% isn't the best yield on the market, it's the consistency of passive income that might attract investors.
As far as dividend shares go, Car Group has now put together 10 years of consistent increases.
Qantas Airways Ltd (ASX: QAN)
Qantas is one of Australia's most recognisable ASX dividend shares.
New data from UBS has projected a cash dividend yield of almost 5% in 2026 including the franking credits.
Macquarie also expects Qantas to deliver a dividend yield of around 5% in FY26.
This is expected alongside further share price gains, which could bring the magical combination of capital gains and passive income.
Its dividend is also expected to continue to grow through 2030, giving these ASX dividend shares strong long term potential.
Qantas will release its half-year results on February 26.
