This period of time seems to have heightened uncertainty, with plenty of disruption with energy prices, wider inflation, technology changes, and bond yields. I'm also seeing elevated dividend yields on offer from high-quality ASX dividend shares that pay passive income.
I don't expect interest rates to stay this high forever, so I believe opportunistic investors can buy stocks at a discount, with a high dividend yield.
With that in mind, I'm going to highlight two ideas that look like unmissable buys right now for investors who want passive income.
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Centuria Industrial REIT (ASX: CIP)
I believe the real estate investment trust (REIT) sector is significantly undervalued, considering the consistent rental income it generates and the importance (and scarcity) of the land it owns.
Industrial properties are in high demand in metropolitan locations because of both a shortage of facilities and tailwinds from multiple demand drivers. For example, e-commerce adoption, data centres, and refrigerated space (for food and medicine) are all increasing the value of industrial real estate over time.
During FY26, the business reported 5.2% like-for-like net operating income (NOI) growth. That was partly boosted by 30% positive re-leasing spreads, meaning that new rental contracts are generating 30% more rental income than the old contract.
According to the ASX dividend share, its real estate portfolio is still on average 17% 'under-rented', so its rent could continue to grow strongly over the next several years as leases come up for renewal.
It has guided that it will grow its distribution by 3% in FY27 to 17.3 cents, which now represents a distribution yield of 6.1%, which is an impressive starting point.
In my view, it's very cheap. It reported net tangible assets (NTA) of $4.01 at 30 June 2026. It's currently trading at a discount of 30% to that figure.
MFF Capital Investments Ltd (ASX: MFF)
The other ASX dividend share I want to highlight is the listed investment company (LIC) MFF.
I think it's great to be able to invest in one name and get exposure to a diversified portfolio. MFF owns a portfolio and aims to invest in competitively advantaged global businesses with strong outlooks.
Some of the businesses currently in the portfolio include Mastercard, Alphabet (Google), Visa, Bank of America, Amazon, and Microsoft.
By investing in these great companies, MFF is unlocking investment returns which it then uses some of to pay a growing dividend. The retained profits can then be used for further compounding.
I think MFF will grow its FY27 dividend by 19% to 25 cents per share. That translates into a potential forward grossed-up dividend yield of 6.6%, including franking credits, at the time of writing. It has hiked its regular annual dividend every year since 2018, and the payout continues to grow.
