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.
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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.
