ASX passive income ideas are some of the best ideas for dividends across the world, in my view.
Not only can shares provide a great dividend yield, but Australian companies can also attach franking credits to their payouts, providing a yield-boosting advantage to Australian income investors.
Let's look at two of my top ideas for significant passive income.
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WCM Global Growth Ltd (ASX: WQG)
Listed investment companies (LICs) are a great option for dividends, given their ability to provide both diversification and solid dividends.
This LIC gives investors exposure to a portfolio of between 20 to 40 high-quality stocks that are primarily from the consumer, technology and healthcare sectors.
But, not only is the ASX passive income stock looking for high-quality names, but it wants to focus on businesses that have improving economic moats – I think that's an important driver of shareholder returns. The direction of the moat is more important than the size of the moat to WCM.
On top of that, the investment team want to see that the businesses have a corporate culture that supports the improvement of the economic moat.
Pleasingly, it's not just focused on US shares – it's a global portfolio. At 30 June 2026, around 58% was invested in the Americas (not just the US), 20% in Europe, 16% in Asia Pacific and 6% in 'other'.
The LIC is using its pleasing investment returns to pay a rising dividend. Its annual dividend has increased each year since 2019, and it's now paying a quarterly dividend.
The next four quarterly dividends are guided to come to 9.59 cents. That translates into a forward grossed-up dividend yield of 6.8%, including franking credits, at the time of writing.
Charter Hall Long WALE REIT (ASX: CLW)
The other ASX passive income idea I want to highlight is this real estate investment trust (REIT). It has a diversified portfolio of different properties across a number of areas including pubs and hotels, service stations, telecommunication exchanges, data centres, government-tenanted buildings, Bunnings, waste and recycling, and more.
I like this strategy because it reduces the exposure to any particular property subsector and also gives the business the ability to look across the entire sector for opportunities.
It maintains a very generous distribution payout ratio of 100% of its rental profit, enabling it to give investors a very pleasing yield.
Based on the FY26 annual payout of 25.5 cents per security, that translates into a distribution yield of 6.6%, at the time of writing. You won't find that (net) distribution yield from a typical residential property.
While higher interest rates are a temporary headwind, I think this has created an attractive valuation and could be a tailwind when rates reduce. Its rental income is steadily growing thanks to fixed and inflation-linked rental increases.
It looks like a good time to buy to me, with it trading at a large discount to its net asset value (NAV) as of December 2025. We'll see this month what the new NAV figure is when the business reports what its underlying value was at 30 June 2026.
$600 per month of passive income
Between these two businesses, they have an average dividend yield of 6.7%. While they don't pay every month, they do pay quarterly. So, we should look at it as an annual goal.
To unlock $600 per month, we're talking about $7,200 per year.
With an average dividend yield of 6.7%, that would require an investment portfolio of $107,500. I'd be very happy with these figures, though they aren't the only ASX passive income ideas I'd buy.
