ASX passive income shares could be a great pick right now because of the large dividend yields they can provide investors.
It's true that interest rates are higher these days, and that means savings accounts, term deposits and bonds are paying more income from 'safe' assets. But some stocks are paying much more than term deposits, and the payouts are proving to be resilient.
Let's look at two stocks I expect to pay high dividends in the coming years.
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Dexus Industria REIT (ASX: DXI)
This real estate investment trust (REIT) owns a portfolio of industrial real estate across Australia. It's invested in high-quality warehouses in Australia's major cities. At 30 June 2026, the property portfolio was valued at $1.5 billion and it aims to provide sustainable income and capital growth prospects for investors.
There are a number of drivers of rental demand, including e-commerce and data centres. I think this helps support rental earnings, income distribution to investors, and property valuations.
During FY26, it achieved strong like-for-like portfolio income growth of 5.3%, supported by rental escalations, strong re-leasing spreads of 21.4% and a high occupancy rate of 98.8%.
The business plans to maintain its annual distribution per share at 16.6 cents per share in FY27. That translates into a forward distribution yield of 7%, which I'd describe as an excellent starting yield.
Shaver Shop Group Ltd (ASX: SSG)
The other ASX share I want to highlight is Shave Shop, a retail chain with stores across Australia and New Zealand.
Its position in the market means it has been able to negotiate exclusive products with certain brands, unlocking impressive items that shoppers enjoy. This can come with a higher gross profit margin.
Another pleasing element of Shaver Shop's strategy is the fact that it has launched its own brand called Transform-U. The ASX share has filled in certain gaps in its guidance range and price point range, while achieving a higher gross profit margin.
The company can also grow its earnings in a number of other ways including more stores, growth of online sales, new high-quality brands, and selling more non-shaving health and beauty items.
It has been impressively consistent with its payout – it hiked each year between FY17 and FY23, maintained it in FY24, grew it in FY25 and then maintained it FY26. As you can see, there have been no dividend cuts in that time.
Using the FY26 payout, it has a grossed-up dividend yield of 11%, including franking credits, at the time of writing.
$300 per month of passive income
Between those two ASX passive income shares, the average dividend yield is 9%, which is impressive.
They don't pay dividends monthly, so investors need to think about an annual target of $3,600. At an average dividend yield of 9%, it would take $40,000 to make that income money.
Of course, I wouldn't just invest in two stocks for dividends, I'd spread the money around other ASX shares for diversification to generate returns.
