After the Federal budget changes a couple of months ago, I think ASX dividend shares are even more attractive than they were before.
Passive income from Australian companies can still come in the form of fully franked dividends, which provides a pleasing dividend yield.
In my view, the two below ideas are among the best in Australia, in my view.
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MFF Capital Investments Ltd (ASX: MFF)
MFF has been one of the best-performing listed investment companies (LICs) over the past decade thanks to its focus on high-quality international shares.
Names like Visa, Mastercard, Alphabet and Amazon have helped it deliver great portfolio returns.
I like the ASX dividend share's investment flexibility giving it the ability to find the best opportunities anywhere with almost any sized business. While it does focus on global shares, L1 Group Ltd (ASX: L1G) – an ASX share – was one of its latest investments.
With those great returns, MFF has been growing its annual dividend at a compound annual growth rate (CAGR) of more than 20% in recent years.
I think there is a good chance the business will increase its payout by 19% in FY27 to 25 cents per share, translating into a potential grossed-up dividend yield of 6.8%, including franking credits. This could be one of the best ASX dividend shares to buy for passive income right now.
Centuria Industrial REIT (ASX: CIP)
This is a real estate investment trust (REIT) that provides investors exposure to industrial properties. I think the business can provide investors with a mixture of good passive income and capital growth.
The business is benefiting from strong demand thanks to e-commerce adoption, refrigerated space (for food and medicine), data centres, supply chain onshoring and more. All of that has led to a low vacancy rate and stronger-than-average rental growth.
In the FY26 half-year result, the business reported like-for-like net operating income (NOI) growth of 5.1%, with the portfolio being an average of 20% under-rented – this provides future earnings growth potential.
The business is regularly adding to its portfolio with both acquisitions and property developments, which helps increase its rental potential.
The fund manager of the ASX dividend share, Grant Nichols, said earlier this year:
CIP maintains significant earnings upside due to its strong, anticipated medium-term income growth resulting from material under-renting across the portfolio, expected improved portfolio occupancy, prudent completed capital management and the expected market rental growth stemming from Australia's favourable industrial market conditions. Improving tenant demand and constrained supply is expected to drive the national vacancy to less than 2.0% by 2030, providing a pathway to continued strong market rental growth.
Its FY26 annual distribution of 16.8 cents per security translates into a forward dividend yield of 5.6%. It's currently trading at a large discount to its net tangible assets (NTA) of $3.95.
