Australian passive income investors are a lucky bunch.
The local share market is home to a large number of ASX shares that reward their shareholders with dividends every year.
So, if I were looking for ASX shares to buy now for passive income, these three would be on my shortlist.
Image source: Getty Images
Charter Hall Retail REIT (ASX: CQR)
Charter Hall Retail REIT would be an ASX passive income share I would look at.
The REIT owns convenience-focused retail properties across Australia. These are the types of centres anchored by supermarkets, everyday services, and tenants linked to regular household spending.
Its tenants include Coles Group Ltd (ASX: COL) and Wesfarmers Ltd (ASX: WES).
This gives the portfolio a different feel from large discretionary shopping malls. People may delay buying furniture, electronics, or luxury items when conditions are tough, but I would expect grocery shopping and local errands to continue through most economic cycles.
Rising interest rates remain a key risk. But if rates ease over time, or even just stop pressuring valuations, investor sentiment toward quality property trusts could improve.
The Charter Hall Retail REIT offers an estimated FY 2027 dividend yield of approximately 6.9%.
Flight Centre Travel Group Ltd (ASX: FLT)
Flight Centre Travel Group is a different type of passive income idea.
It is not a traditional defensive ASX dividend share. Its earnings are tied to travel demand, business activity, leisure spending, airfares, and consumer confidence.
Flight Centre has spent the past few years rebuilding after the severe disruption caused by the COVID pandemic. And while trading conditions have been tough due to the conflict in the Middle East and the cost of living crisis, its evolution means the company is well-placed to grow its earnings materially once conditions normalise.
So much so, Flight Centre shares are expected to offer a fully franked 4.2% dividend yield in FY 2027.
Woolworths Group Ltd (ASX: WOW)
Woolworths is the most defensive name on this list.
The supermarket giant gives passive income investors exposure to everyday spending through food, groceries, household essentials, and related retail operations.
It is not a high-yield ASX share, and I would not buy it expecting the biggest dividend on the ASX. The main attraction here is its dependability.
Woolworths has scale, brand recognition, loyalty data, a major store network, and an important position in Australian household budgets. As I mentioned above, even when consumers become more cautious, groceries remain a core expense.
Looking to FY 2027, Woolworths shares are expected to offer a fully franked dividend yield of 2.8%.
