Some of the best places to find passive income in Australia are ASX dividend shares, in my view.
What's better than a combination of a good dividend yield and potential capital gains?
Of course, neither dividends nor capital growth is guaranteed. That's why I prefer to look at undervalued stocks with a good outlook for payout growth in the coming years.
Let's look at two ASX dividend shares that have a dividend yield of at least 6%.
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Dexus Industria REIT (ASX: DXI)
The first business I want to highlight is the real estate investment trust (REIT) Dexus Industria REIT. It owns a portfolio of industrial properties across Australian cities, predominantly in key metropolitan locations.
Industrial properties are a compelling place to invest because the rental income is benefiting from multiple tailwinds.
For example, there is long-term growth of e-commerce usage, which requires warehouses. Data centre demand is another driver of rental value of industrial land. Demand for refrigerated space is also growing for both food and medicine. And so on.
In FY26, the ASX dividend share reported strong like-for-like portfolio income growth of 5.3%, supported by rental escalations, strong releasing spreads (new rental contracts earning more than the old one), and high occupancy of 98.8%.
Despite high interest rates, Dexus Industria REIT expects to maintain its FY27 distribution at 16.6 cents per security. That translates into a forward distribution yield of 7%.
Universal Store Holdings Ltd (ASX: UNI)
The Universal Store company has multiple businesses under its umbrella – Universal Store, Perfect Stranger, and CTC (with the THRILLS and Worship brands). It sells youth casual fashion apparel.
Its FY26 result impressed, given the difficult operating environment, with 12.9% sales growth to $376.1 million and 16.3% underlying net profit growth to $40.5 million. This allowed the business to hike its annual dividend per share by 11.7% to 43 cents.
The ASX dividend share is delivering sales growth from both an expanding store network and impressive like-for-like (LFL) growth at its existing stores. The Universal store business generated 8.1% LFL growth, and Perfect Stranger achieved 13% LFL growth.
In the first seven weeks of FY27, the company saw direct-to-consumer sales rise by another 9.1% year over year. Management intends to open another 16 to 20 stores across the business in FY27, which can help grow its sales and margins further.
Based on the FY26 annual dividend payout of 43 cents per share, the business has a trailing grossed-up dividend yield of 7.6%, including franking credits, at the time of writing. I expect the ASX dividend share's payout will grow again in the 2027 financial year.
