193,856 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension

The Age Pension is generous, but I prefer this ASX stock.

The Australian Age Pension is one of the most generous in the world and it's becoming increasingly rewarding. Despite that, there are high-yield ASX dividend stocks I'd rather rely on for income.

The Age Pension rates have recently had a boost. The maximum normal Age Pension for a single person is now $1,237.70 per fortnight. That translates into an annualised approximate $32,180.

I'm going to talk about why I prefer the Dexus Industria REIT (ASX: DXI) over the Age Pension.

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.

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High-yield ASX dividend stock

Following interest rate rises and market uncertainty surrounding interest rates, I'd suggest that real estate investment trusts (REITs) are being overlooked by the market as long-term opportunities.

This particular business is an Australian REIT that is invested in high-quality industrial warehouses. At 30 June 2026, its property portfolio was valued at $1.5 billion and is located across major Australian cities, with a goal to provide sustainable income and capital growth for investors.

The business has provided guidance that it will pay a distribution of 16.6 cents per security in FY27, representing a distribution payout ratio of 97.6% – that's high but sustainable.

The forecast payout translates into a distribution yield of 7%, which is a high and pleasing dividend yield.

To match the annual Age Pension, an investor would need 193,856 units of the REIT.

Rising rental income

One of the main reasons why I think this high-yield ASX dividend stock is so appealing is because it's experiencing solid rental growth.

In FY26, it saw strong like-for-like portfolio income growth of 5.3%, supported by rental escalations, strong re-leasing spreads of 21.4% (new contracts generating stronger revenue than old rental contracts) and a high occupancy rate of 98.8%.

The high-yield ASX dividend stock suggests that moderating supply supports stronger market fundamentals and the outlook for its existing portfolio. Construction costs are forecast to compound faster than CPI, so its existing $217 million development pipeline offers a hard-to-replicate pathway to growth.

The business has a lot of its revenue linked to CPI, so it can provide long-term impacts of inflation.

Capital growth potential

The final reason I think this option is superior to the Age Pension is that it can provide capital growth, whereas the Age Pension doesn't.

As rents increase over time, this can provide a boost to the value of the properties and support the Dexus Industria REIT unit price.

During FY26, its net tangible assets (NTA) per security grew 2.4% to $3.42. That means it's now undervalued by 31% compared to the June 2026 NTA. I think it's a great time to invest for the long-term.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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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