The ASX share market is one of the best places to find passive income, in my eyes. A combination of franking credits and rising interest rates means ASX blue-chip shares can offer some of the largest dividend yields.
While lower share prices can be unnerving, I think that's the best time to strike because of the better dividend yields (and valuations) on offer.
With that in mind, I think the two ASX blue-chip shares below really fit the bill.
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Charter Hall Long WALE REIT (ASX: CLW)
Higher interest rates are a short-term negative for property due to higher interest costs and a headwind to property prices. I think that's largely why the Charter Hall Long WALE REIT unit price has dropped by 20% in the last six months.
The decline has meant the distribution/dividend yield has been boosted. It's expecting to increase its payout slightly to 25.5 cents per security in FY26, which now translates into a distribution yield of 7.5%, at the time of writing.
It's not just the yield that's appealing. It has a weighted average lease expiry (WALE) of around nine years. That means many years of rental income have been locked in.
It is one of the largest REITs on the ASX with a diversified portfolio across a number of areas, including hotels, service stations, telecommunications exchanges, data centres, distribution centres, and plenty more.
It has a number of ASX blue-chip shares as reliable tenants, giving the REIT an even greater claim as a resilient blue chip itself. Some of its great tenants include Telstra Group Ltd (ASX: TLS), BP, Coles Group Ltd (ASX: COL), Metcash Ltd (ASX: MTS), Westpac Banking Corp (ASX: WBC), and Wesfarmers Ltd (ASX: WES).
JB Hi-Fi Ltd (ASX: JBH)
Another leading ASX blue-chip share is JB Hi-Fi, one of Australia's leading retailers of electrical products, gadgets, and home appliances through its stores across Australia and New Zealand. It also owns The Good Guys business.
The fact that it has increased its payout in most years over the past 15 years demonstrates its long-term growth and its potential as an effective income pick.
Following the 35% decline in JB Hi-Fi's share price over the last six months, its projected dividend yield is now high.
According to CMC Invest's projection, the business is expected to pay an annual dividend per share of $3.55 in FY26. That translates into a grossed-up dividend yield of 6.75%, including franking credits, at the time of writing.
I think the company's earnings can continue to grow as it expands its store network, sells new products, achieves additional scale benefits, grows the newly acquired E&S, and implements additional cost-saving strategies.
