The ASX share market is an excellent place to find businesses that provide incredible passive income. ASX dividend shares could be much more appealing than a savings account to generate income.
The potential return from a savings account is limited to the interest, though it also protects against negatives, too.
ASX dividend shares can provide a very pleasing mixture of dividend yield and dividend and capital growth over the long-term. Below are two of the best value options, in my opinion.
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Charter Hall Long WALE REIT (ASX: CLW)
This business is probably the most diversified property real estate investment trust (REIT) on the ASX because it's invested in numerous areas such as service stations, telecommunication exchanges, pubs/hotels, distribution centres, Bunnings properties and plenty more.
It offers investors excellent diversification thanks to the many different subsectors it's invested in. I think that's useful for both lowering the risk of being too exposed to one area and gives the REIT a wider hunting zone to find opportunities.
The business has rental growth built into its contracts with plenty of rent hikes linked to inflation, while the rest have fixed annual increases.
Another benefit to the business is that the REIT has a very long weighted average lease expiry (WALE), giving investors significant rental security and visibility.
Those rental increases were key to the business announcing that its FY26 distribution would grow by 2% to 25.5 cents per security. That translates into a current distribution yield of 6.8%.
It looks a lot cheaper after falling 30% from April 2022.
Dexus Industria REIT (ASX: DXI)
The other ASX share I want to highlight with a great dividend yield is this REIT which focuses on industrial properties.
I think industrial properties have a very promising future because of the rental tailwinds they possess. There are supportive factors like rising e-commerce adoption, data centres, refrigerated facilities for food and medicine, onshoring of supply chains, and, just generally, the rising Australian population.
This REIT owns quality industrial properties across Australian metropolitan areas.
It's experiencing solid like-for-like rental growth, which is a strong driver of the higher property valuations and distributions. The HY26 result saw LFL income growth of 7.4% thanks to factors like rental escalations and strong re-leasing spreads.
The business recently announced a valuation update for its portfolio, which showed a slight 0.2% rise of the property portfolio valuation.
The ASX dividend share's guidance for its annual FY26 payout is 16.6 cents per share. This translates into a forward distribution yield of 6.75%.
This business looks very cheap to me with how its unit price has declined by 33% since September 2021.
