Certain ASX blue-chip shares are excellent contenders for passive income given their pleasing dividend yields.
Strength and stability are reassuring factors for investors seeking a strong dividend each year, even through tougher economic conditions.
With that in mind, I want to highlight the two stocks below as contenders for passive income.
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Charter Hall Long WALE REIT (ASX: CLW)
Rental income is predictable and locked in thanks to the terms of lease agreements. This makes certain real estate investment trusts (REITs) very attractive.
Charter Hall Long WALE REIT has a diversified portfolio of properties. Within that portfolio are long-term leases.
It has a weighted average lease expiry (WALE) of around nine years, which is a long time and provides significant rental security.
The REIT has an occupancy rate of around 100%. Approximately 99% of the portfolio is leased to blue-chip tenants such as government entities, Endeavour Group Ltd (ASX: EDV), Telstra Group Ltd (ASX: TLS), BP, Coles Group Ltd (ASX: COL), Metcash Ltd (ASX: MTS), David Jones, Westpac Banking Corp (ASX: WBC), Arnott's Group and Sonic Healthcare Ltd (ASX: SHL).
It's those sorts of tenants that can provide investors with commendable reliability during all economic conditions.
I like the areas of the commercial market the REIT is invested in, including hotels, grocery and distribution, telecommunications exchanges, data centres, service stations food manufacturing, healthcare and more.
Despite the headwind of higher interest rates, the ASX blue-chip share is expected to maintain its operating earnings per security (EPS) of 25.5 cents in FY27. The business plans to pay a 100% distribution payout ratio, so the distribution is also expected to be 25.5 cents per security.
The likely payout for the 2027 financial year translates into a forward distribution yield of 7.8%.
Australian United Investment Company Ltd (ASX: AUI)
Another ASX blue-chip share that looks compelling is this listed investment company (LIC) with a long history of paying dividends.
It was founded in 1953 and it invests in both ASX shares and international shares. It aims to provide sustainable dividend income over the long-term.
At the end of September 2026, its largest holdings were Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), CSL Ltd (ASX: CSL), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES), Westpac Banking Corp (ASX: WBC), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Transurban Group (ASX: TCL).
The LIC has an incredibly low management expense ratio of 0.09% which is one of the lowest-costing portfolios in Australia.
The ASX blue-chip share has paid a dividend every year since its listing in 1974 and has maintained or increased its dividend each year since 1994.
In FY27, it plans to pay 37 cents per share of ordinary dividends and a special dividend of 8 cents per share. The total dividend per share of 45 cents translates into a grossed-up dividend yield of 5.4%, including franking credits, at the time of writing.
It currently trades at a 14% discount to the net tangible asset (NTA) per share, as of September 2026. This discount makes the valuation look attractive to me.
