2 ASX passive income ideas I'd use to generate $300 a month in 2027

These stocks can provide significant dividend income…

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ASX passive income ideas can be some of the best ideas for generating cash returns because of how they can provide large and growing dividend payouts.

Dividends aren't guaranteed, but some investments can provide payout guidance that can give us a high level of confidence of what the payment may be for the coming financial year.

I'll run through two of my favourite picks for payouts.

Person with a handful of Australian dollar notes, symbolising dividends.

Image source: Getty Images

Centuria Industrial REIT (ASX: CIP)

I think this is one of the best options in the real estate investment trust (REIT) sector for payouts because of the tailwinds it's benefiting from and the rising distributions.

It describes itself as Australia's largest domestic pure-play industrial REIT and is in the S&P/ASX 200 Index (ASX: XJO). It wants to provide investors with income and an opportunity for capital growth.

The properties are located in key metropolitan areas throughout Australia and it's underpinned by a quality and diverse tenant base.

In FY26, the business experienced like-for-like net operating income (NOI) growth of 5.2%. There are a number of drivers increasing the rent value of industrial real estate such as data centres, e-commerce adoption, a growing population, the onshoring of logistics, and refrigerated storage for food and medicine.

The ASX passive income idea also reported in FY26 that it saw 30% positive re-leasing spreads – its rental income is seeing a big jump, with new contracts generating much stronger rent than the old rent. The REIT reckons that its portfolio is, on average, 17% under-rented, suggesting further strong growth as leases come up for renewal in the coming years.

Centuria Industrial REIT has provided guidance that its FY27 distribution will grow by 3% year-over-year to 17.3 cents per security, while net rental profit could grow by up to 5.5% per unit.

At the time of writing, the FY27 distribution guidance translates into a forward yield of 5.8%.

WCM Quality Global Growth Fund (ASX: WCMQ)

I think plenty of Australian investors could benefit from owning quality exchange-traded funds (ETFs) that give exposure to global shares. However, not many of those ETFs have a good dividend yield.

I believe the WCMQ ETF can provide a pleasing mixture of capital growth and dividends, which is why I think it's a top option to consider.

WCM is a California-based fund manager. It has two criteria for including any company in its portfolio. The company must have a growing competitive advantage (or expanding economic moat) and a corporate culture that supports expanding the moat.

WCM believes the direction of a company's economic moat is more important than the actual current size of its moat. It focuses on companies with a positive moat 'trajectory', measured by rising return on invested capital (ROIC), rather than those with a large but static or deteriorating moat.

Since the ETF's inception in August 2018, its portfolio has returned an average of 15.2% per year.

The fund aims to provide investors with a minimum annualised cash yield of 5% per year, based on the net asset value on 30 June 2026.

It has provided guidance that it will pay quarterly distributions of 53.6 cents over the next year, which is a yield of around 5.3% at the time of writing.

$300 per month from these ASX passive income ideas

At the time of writing, the distribution guidance for these two ideas comes to an average dividend yield of 5.55%.

They don't pay monthly, but they do pay quarterly. So, I think it's better to think of the target as an annual goal and then split that into a monthly amount.

Achieving $300 per month translates into an annual target of $3,600. To deliver that goal at an average of 5.55%, we're talking about investing approximately $64,900 across these two names. But I'd ensure I spread my money across more than just two names for good diversification.

Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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