Passive income investors have plenty of Australian shares to choose from outside the major banks.
I like companies that can generate enough cash to reward shareholders while still investing in their businesses.
Here are three I think are worth considering.
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Aurizon Holdings Ltd (ASX: AZJ)
Aurizon plays an important role in moving Australia's commodities from where they are produced to where they need to go.
It is Australia's largest rail-based transport business, carrying more than 250 million tonnes of commodities each year for miners, primary producers, and industrial customers.
I think that infrastructure makes Aurizon an attractive passive income candidate.
Rail networks are expensive and difficult to replicate, while customers need reliable transport to move enormous volumes of products such as coal, iron ore, and agricultural commodities. Aurizon also owns and operates regulated rail infrastructure in Queensland alongside its freight operations.
The company has made returning capital to shareholders an important part of its approach.
Aurizon paid an interim dividend of 12.5 cents per share for FY26 and has declared a final dividend of 10.5 cents. Both are 90% franked, taking the full-year payment to 23 cents per share.
Based on its recent share price, those payouts equate to a dividend yield of roughly 6.3%.
Commodity volumes and regulatory decisions can affect the business, so I would not assume that dividend remains unchanged every year. Still, I think Aurizon's infrastructure and focus on shareholder returns make it worth considering for income.
Universal Store Holdings Ltd (ASX: UNI)
Universal Store could be another top passive income pick.
The retailer sells youth fashion through its Universal Store, Perfect Stranger, and THRILLS businesses, and it has been gradually expanding its physical store network.
What catches my eye from an income perspective is the cash the business has been able to return while still funding that expansion.
In FY26, Universal Store paid a fully franked interim dividend of 26 cents per share before declaring a fully franked final dividend of 17 cents. That takes FY26 dividends to 43 cents per share.
With Universal Store shares recently trading around $8.45, that represents a dividend yield of approximately 5.1%.
I would expect more variation from the dividend of a fashion retailer than from some traditional income businesses. Consumer spending and fashion trends can change quickly.
But I like that Universal Store can continue expanding while also sending a meaningful amount of cash back to shareholders.
Sonic Healthcare Ltd (ASX: SHL)
Sonic Healthcare provides pathology and medical diagnostic services across major healthcare markets around the world.
These are services that doctors and patients need regardless of what is happening in financial markets, giving Sonic exposure to healthcare demand rather than discretionary spending.
Its scale also stands out to me. Sonic operates across nine countries and 11 markets and provides medical services to more than 140 million patients each year.
I think that makes it an interesting share for investors seeking both income and long-term exposure to healthcare.
Sonic has also built an impressive record of gradually increasing its dividend. Its total dividends rose to $1.08 per share for FY26, comprising a 45 cent interim dividend and 63 cent final dividend. Those FY26 dividends are 60% franked.
At a share price of around $21.41, that works out to a yield of roughly 5%.
I like the possibility of receiving income while Sonic continues building its diagnostics operations around the world.
Foolish takeaway
A high dividend yield alone would never be enough to convince me that a share is a good income investment.
I would also want a business capable of generating the cash needed to support those payments over time.
I think Aurizon, Universal Store, and Sonic Healthcare each give passive income investors a credible reason to look beyond the usual dividend names.
