I love finding ASX dividend shares that offer investors great dividend yields. A yield of 7% or more is very appealing, even in this higher interest rate era.
I'd only want to buy businesses that can provide stable or growing payouts. If we're aiming for passive income, I want to have confidence that those cash payments will continue flowing.
Of course, dividends are not guaranteed from any business. But, some companies already have a track record of reliable or increasing payouts. Let's get into two great ideas.
Image source: Getty Images
Universal Store Holdings Ltd (ASX: UNI)
Universal Store is one of the leading retailers on the ASX, in my view, with how impressively it has managed to grow earnings over the last five years through all economic conditions.
It's best known for its premium youth fashion-focused businesses Universal Store and Perfect Stranger.
Those two businesses have delivered pleasing growth at their existing store network, and they continue to expand. In the first 43 weeks of FY26, the company reported like-for-like sales growth of 8.5% for Universal Store and 12.9% for Perfect Stranger.
Partially thanks to four new Universal Stores and seven new Perfect Stranger stores in the year to date (at the point of that update), those two segments were able to report total sales growth of 11.8% and 39.8% respectively in the first 43 weeks of FY26.
It's clearly doing a great job of winning more retail spending from customers, while also growing earnings. The mid-point of its FY26 guidance suggests overall sales could rise 11.5% year-over-year, while underlying operating profit (underlying EBITA) could rise 15.4% – faster than the sales growth.
Universal Store has increased its annual dividend per share each year since it started paying passive income in FY21. Its latest two dividends come to 42.5 cents per share, which translates into a grossed-up dividend yield of 8.3%, including franking credits.
Charter Hall Long WALE REIT (ASX: CLW)
The other ASX share I want to highlight with a yield of more than 7% is this real estate investment trust (REIT) that's invested in an array of properties across Australia.
It's invested in things like pubs, service stations, industrial and logistics, office, data centres and social infrastructure.
At December 2025, the business had 515 assets worth around $6 billion with an average weighted average lease expiry (WALE) of approximately nine years and an occupancy rate of 99.9%, with 99% of the portfolio leased to blue-chip tenants. That shows the business is maximising its rental potential for the long-term.
Pleasingly, the rental income continues to grow, which can help fund larger distributions in the coming years. Around half of the portfolio has CPI-linked rental growth, while fixed increases provide rental growth for the rest of the properties.
In the first half of FY26, the business achieved like-for-like rental growth of 3%, which helped fund a 2% rise in the distribution to 25.5 cents per security. At the time of writing, the attractive valuation offers a distribution yield of 7.02%.
I think these ASX shares would make excellent investments today.
