For me, this is the right time to look at certain high-yield ASX dividend stocks that look like they're trading cheaply, offer good dividend yields with potential for growth in the coming years.
When interest rates rise, I think it makes a lot of sense to look at real estate investment trusts (REITs) – they generate resilient rental earnings, yet the market typically pushes down the unit price.
For me, there are two high-yield ASX dividends that look particularly attractive during this period. Let's get into it.
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Centuria Industrial REIT (ASX: CIP)
This business owns industrial properties across Australia's major cities in important locations where demand is high but supply and vacancies are low.
The REIT's rental income is growing at a pleasing speed thanks to the level of demand coming from customers for distribution and logistics, data centre, food or medicine purposes.
Rental values for metropolitan industrial properties have risen significantly in the last few years, which is why the business believes its portfolio is, on average, 20% 'under-rented'. As leases come up for renewal, the high-yield ASX dividend stock is seeing a significant boost for that property's rental income.
In terms of the passive income, it expects to grow its FY26 annual distribution by 3% to 16.8 cents per security. That translates into a current distribution yield 5.7%.
On the valuation side of things, its latest net tangible assets (NTA) was stated as $3.95 at 31 December 2025, meaning it's trading at a discount of around 25% to this valuation. That's very appealing to me.
Rural Funds Group (ASX: RFF)
Rural Funds is the other high-yield ASX dividend stock I want to highlight. It's the owner of various farms across Australia, including cattle, almonds, macadamias, vineyards and cropping.
The business has high-quality tenants signed on for, on average, more than a decade. It has one of the longest weighted average lease expiry (WALE) figures in the Australian REIT sector.
Rural Funds has built its portfolio to own assets that can deliver solid income in the shorter-term and deliver capital growth over the longer-term.
Most of Rural Funds' contracts have rental indexation included, with either fixed annual increases or the increases are linked to inflation, plus market reviews.
Despite the headwinds of higher interest rates, Rural Funds has been steady with its annual distribution per unit of 11.73 cents in recent years. It wouldn't surprise me if it was exactly that payment in FY27 as well. Its current annual distribution translates into a yield of 5.9%.
In terms of how undervalued it is, the business reported an adjusted net asset value (NAV) of $3.10 as of 31 December 2025. That means it's currently trading at a discount of around 36%. That looks too cheap to ignore, in my opinion.
