Some ASX dividend shares are providing investors with a big dividend yield. Part of the reason why the payouts are so large is because the businesses are undervalued, in my view.
A good passive income stock is one that can provide resilient dividends and grow its underlying value over time.
There's not much point buying high-yield ASX dividend shares if the share price and dividend decline over time.
So, I'm going to highlight two high-yield names that have a record of consistency and I think could deliver rising payouts over time.
Image source: Getty Images
Shaver Shop Group Ltd (ASX: SSG)
Shaver Shop has a goal to become the leader of hair removal products in Australia, with its national store network selling a variety of male and female wet and dry shave products.
The company recently released its FY26 half-year result which included positive numbers.
In the six months to 31 December 2025, sales grew 2.2% to $128.6 million, operating profit (EBIT) grew 2.5% to $18.1 million and net profit after tax (NPAT) climbed 1.5% to $12.2 million.
Pleasingly, online sales increased by 7.4% and the gross profit margin grew 100 basis points (1.00%) to 46.5%). The main driver of the ASX dividend share's gross profit improvement was the expansion of its private brand Transform-U.
Work on the store network in the HY26 period is supportive sales growth in the second half of FY26 and FY27. It opened two locations in the first half, with another one planned to open in March 2026. It also refitted one full store and relocated one in the half, with three full store refits and two relocations planned for the second half.
All of the above helped the business maintain its annual dividend per share at 4.8 cents per share in the HY26 result.
In terms of passive income appeal, the ASX dividend share increased its payout each year between FY17 and FY23, maintained it in FY24 and then grew it again in FY25 to 10.3 cents per share. That translates into a grossed-up dividend yield of 9.4%, including franking credits, assuming it just kept the dividend the same in FY26.
In the second half of FY26 to 22 February 2026, total sales grew 3.8%. I think this bodes well for another dividend increase in FY26, particularly if Transform-U continues growing.
Hearts and Minds Investments Ltd (ASX: HM1)
The other high-yield ASX dividend share I want to highlight is Hearts & Minds, a listed investment company (LIC).
Pleasingly, there are no management fees or performance fees involved with the portfolio. Instead, it donates 1.5% of its net assets each year to medical research to a variety of organisations. This could unlock life-changing, or life-saving, medical advancements.
The Hearts & Minds portfolio is constructed from two different sources. First, there's a core group of fund managers that make picks for the portfolio. Second, it holds an annual investment conference where leading investment professionals choose a single stock that could perform.
This approach provides both diversification and can lead to solid returns. The three years to December 2025 showed an average portfolio return of 14.7% per year. That's a high enough return to fund a large and growing dividend, while also seeing growth in the portfolio value.
Hearts & Minds recently declared a half-year dividend of 9.5 cents and intends to increase its payout by 0.5 cents per share every six months for the foreseeable future. The implied annual dividend per share of 19.5 cents for FY26 translates into a grossed-up dividend yield of 9.4%, including franking credits.
