By investing today, you can benefit from low tax rates, compounding, and eventually a tax-free passive income once you transition to the pension phase.

But how much do you actually need in your super to generate the passive income you want when you retire?

Let's break it down, using $5,500 per month as an example.

How much superannuation do I need to earn $5,500 of monthly passive income?

The math is simple.

First, calculate what $5,500 in passive income per month totals over the year. 

So, $5,500 x 12 = $66,000.

Then divide your annual passive income by your overall portfolio's dividend yield.

But the tricky part is that the answer varies widely depending on your portfolio's dividend yield.

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

Let's break it down further

If your overall portfolio has a dividend yield of around 3%, you'll need a balance of around $2.2 million to earn $66,000 in passive income each year.

A $2 million-plus portfolio isn't achievable for many Australian investors, but the good news is that, as the dividend yield of your portfolio increases, the superannuation balance you need to earn the same passive income goes down.

For example, if your portfolio yields closer to 4%, you would need around $1.65 million in your superannuation to earn $5,500 in passive income each month.

Then, if your portfolio yields around 5%, your balance would need to be closer to $1.3 million to generate the same dividend income.

Increase that to a 6% or 7% dividend yield, and you're looking at closer to $1.1 million or $943,000. You'd still earn $66,000 per year in passive income with these portfolio sizes.

Note that the higher the yield, generally the higher the risk associated with that ASX stock.

Ok, so what ASX shares can I buy with dividend yields between 3% and 7%?

A wide range of shares yield 3% to 7%, but here are a few of my top picks.

ASX dividend-paying shares, such as large-cap companies like Commonwealth Bank of Australia (ASX: CBA) or mining giant BHP Group Ltd (ASX: BHP), pay their shareholders a 3-4% dividend yield. 

Defensive shares like Telstra Group Ltd (ASX: TLS), Origin Energy Ltd (ASX: ORG) or Amcor PLC (ASX: AMC) are a solid choice for income-seeking investors. These all yield around the 5% to 6% level (at the time of writing).

For a higher 7% dividend yield, or even above, I'd look at dividend-payers like Shaver Shop Group Ltd (ASX: SSG), IPH Ltd (ASX: IPH), or even a real estate investment trust like Charter Hall Long Wale REIT (ASX: CLW).

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I don't think an investor should look at a possible investment just for the passive income. But, if an investor can see a little capital growth along with huge dividend income, that could be an appealing combination of returns for some Aussies.

The two businesses I'm going to highlight have huge dividend yields and I expect can provide stable/growing payouts

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop describes itself as an Australian and New Zealand specialty retailer of male and female personal grooming products. It aspires to be the market leader in hair removal.

Its main products are electric shavers, clippers, trimmers and wet shave items. Its products include oral care, hair care, massage, air treatment and beauty categories.

The company currently has 126 Shaver Shop stores across Australia and New Zealand. At those shops, it offers customers a range of quality brands at competitive prices. Its market position has allowed the business to negotiate exclusive products with suppliers.

Pleasingly, the company has grown its annual dividend almost every year since FY17. The only year it didn't hike the dividend was FY24 when the payout was maintained at 10.2 cents per share.

It currently has an annualised dividend of 10.3 cents per share, which translates into a grossed-up dividend yield of approximately 10% at the time of writing.

Hearts and Minds Investments Ltd (ASX: HM1)

The other ASX share I want to highlight is the listed investment company (LIC) Hearts & Minds.

LICs are a great choice for passive income because they can translate investment returns into dividends while also providing diversification.

There are no management fees or performance fees involved. Instead, all of the fund managers provide investment picks for free so that Hearts and Minds can donate that money to medical research.

The LIC invests in a range of international shares. Some picks are provided by a permanent group of core fund managers, while the rest are decided by investment professionals who present their picks at an annual investment conference.

By investing in an array of compelling international stocks, Hearts and Minds can deliver appealing investment returns. The board of the LIC expects to increase its half-year dividend every six months, which means its next year of dividends could amount to a grossed-up dividend yield of approximately 10%, including franking credits, at the time of writing.

In my view, both of these ASX shares have a compelling outlook for dividend income, though they're not the only stocks I'd look at for passive income.

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I don't think every high-yielding business is an attractive buy, perhaps because that specific dividend may not be sustainable.

But, the below two businesses have demonstrated excellent consistency with their dividends, whilst also offering very high dividend yields.

Shaver Shop Group Ltd (ASX: SSG)

Over the last few years, Shaver Shop has consistently provided investors with a large dividend yield thanks to a low price/earnings (P/E) ratio and a generous dividend payout ratio.

This retailer of shaving products has increased its annual dividend each year since FY17, except in FY24, when it maintained the payout.

If Shaver Shop at least maintains its payout in FY26, that would translate into a grossed-up dividend yield of 10.5%, including franking credits, at the time of writing.

There are not many shares out there that have a dividend yield of more than 10% and have been reliable payers over the past decade.

I think the prospects for the dividend are good. Shaver Shop has a large store network of more than 120 locations across Australia and New Zealand. It has a number of growth avenues including more stores, more exclusive products from high-quality brands, expansion of its private brand called Transform-U (which can come with higher gross profit margins) and expanding its product range of non-shaving items.

I believe this ASX dividend share's payout can continue to be reliable.

Hearts and Minds Investments Ltd (ASX: HM1)

The other idea I want to highlight is the listed investment company (LIC) Hearts and Minds.

This ASX dividend share's board of directors is currently increasing its half-year dividend by 0.5 cents every six months. That means the business expects to pay 20.5 cents per share over the next 12 months, which translates into a grossed-up dividend yield of 9.9%, including franking credits.

The LIC's investment strategy is quite different to many other LICs. There are no management fees or performance fees involved. Instead, it donates to medical research. Some of the entities it currently supports include SpinalCure, Bionics Institute, Peter Mac Cancer Centre, Victor Chang Cardiac Research Institute and several others.

A majority of the portfolio is decided by a group of core, continuing fund managers. They typically focus on high-quality, global shares.

A minority of the ASX dividend share's portfolio is decided by investment professionals at an annual investment conference where they each pitch their best stock idea, which also tend to be international names.

Overall, Hearts and Minds is looking to build a 'best ideas' portfolio that could perform over the long-term. Over the past three years, its portfolio has returned an average of 13.8% per year.

I think both of these ASX dividend shares have a lot to offer investors.

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There are some great ASX shares out there that pay high dividend yields, but I'd only want to buy stocks I'm confident can provide reliable (and even growing) payouts.

Of course, dividends aren't guaranteed. But, I'm optimistic about the future payments from these businesses and I believe the payouts will be even larger in the years ahead.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is a small and compelling ASX share, in my view. It's one of the leading retailers of male and female personal grooming products.

It had 126 Shaver Shop stores at the last count and sells items like electric shavers, clippers, trimmers and wet shave items. It also sells additional product ranges like oral care, hair care, massage, air treatment and beauty categories.

You may not expect a business like this to have a resilient dividend record going back several years, but it does. Its dividend increased each year between FY17 and FY23, it maintained it in FY24 and hiked the payout again slightly in FY25. I think its earnings are more defensive than some other retail sectors.

Impressively, the last two dividends declared by the business amount to a grossed-up dividend yield of 10.5%, including franking credits, at the time of writing.

If the business continues to offer exclusive products from brands, expands its own brand (called Transform-U), and opens more stores, I think the ASX share has a very promising future.

WAM Microcap Ltd (ASX: WMI)

The other high-yielding ASX share I want to highlight is this listed investment company (LIC), which focuses on exciting, small businesses.

I think small ASX shares can be undervalued, and they're usually earlier on with their growth journey, meaning they could outperform their larger counterparts.

I believe it's the above dynamic that has helped the WAM Microcap deliver an average return per year of 14.4% since inception in June 2017, before fees, expenses and taxes.

LICs pay for their dividends from investment profits and profit reserves. This allowed the business to grow its annual ordinary dividend each year between FY18 and FY23, maintain it in FY24, then increase it again in FY25 and FY26.

The high-yielding ASX share expects to pay an annual dividend per share of 10.7 cents in the 2026 financial year. This projection translates into a forward grossed-up dividend yield of 10.4%, including franking credits, at the time of writing.

These aren't the only ASX shares I'd buy for dividends, but they have two of the highest yields.

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By investing today, you can benefit from low tax rates, compounding, and eventually a tax-free passive income once you transition to the pension phase.

But how much do you actually need in your super to be able to get the passive income you want when the retirement years hit?

Let's break it down, using $5,500 per month as an example.

How much do I need in superannuation to get $5,500 of monthly passive income?

If you want to earn $5,500 in passive income every month from your superannuation, that equates to $66,000 per year in dividend payments.

There is an easy way to work out the superannuation balance you'd need to get that level of income. Simply divide your annual passive income by the dividend yield.

But the tricky part is that the answer varies widely depending on your portfolio's dividend yield.

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

Let's break it down further.

If your overall portfolio has a dividend yield of around 3%, you'll need a balance of around $2.2 million to earn $66,000 per year in passive income.

A $2 million-plus portfolio isn't achievable for many Australian investors, but the good news is that, as the dividend yield of your portfolio increases, the superannuation balance needed to earn the same passive income decreases.

For example, if the yield of your portfolio is around 5%, your balance would need to be closer to $1.3 million, to earn the same dividend income.

Increase that to a 6% or 7% dividend yield and you're looking at closer to $1.1 million or $943,000. You'd still earn $66,000 per year in passive income of these portfolio sizes.

Can't I just invest in shares with the highest yield to get the biggest returns?

It's a tempting idea, but it doesn't make good investment sense.

Generally, the higher the yield, the higher the risk associated with that ASX stock.

Rather than trying to get rich quickly, investors should concentrate on good-quality businesses with strong balance sheets and stable earnings. These stocks are most likely to stand the test of time and while also building wealth.

The key is diversity, consistency and lots of patience. 

And remember, you don't need to invest the whole sum in one go. Start with a monthly investment and let compound growth do some of the hard work for you.

Ok, so what ASX shares can I buy with dividend yields around 3-7%?

There is a huge range of options, but here are a few of my favourite ASX dividend shares to get you started.

ASX dividend-paying shares such as large cap companies like Commonwealth Bank of Australia (ASX: CBA) or mining giant BHP Group Ltd (ASX: BHP) pay their shareholders a 3-4% dividend yield. As does CSL Ltd (ASX: CLS) and Telstra Group Ltd (ASX: TLS) .

For a mid-range yielding ASX dividend option, I'd look at defensive stocks like Transurban Group (ASX: TCL), APA Group Ltd (ASX: APA), or ASX miner Fortescue Ltd (ASX: FMG), which pay a dividend of 4-6%.

For a higher 7% dividend yield, or even above, I'd look at dividend-payers like Shaver Shop Group Ltd (ASX: SSG), Charter Hall Long Wale REIT (ASX: CLW) or even IPH Ltd (ASX: IPH).

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Australian companies can provide investors with franking credits, giving investors an even stronger grossed-up dividend yield.

The highest dividend yield isn't necessarily the best one because a lot of higher yields may be in danger of a dividend reduction. However, the following two businesses offer extremely appealing dividend yields as well as a good track record of reliability.

Let's look at what makes them such compelling income stocks with huge dividend yields.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop may be a relatively small retailer compared to names like Wesfarmers Ltd (ASX: WES) and Woolworths Group Ltd (ASX: WOW), but it has built a pleasing position in Australia's shaving industry.

It sells a variety of items including electric shavers, clippers, trimmers and wet shave items. The company also has product ranges across oral care, hair care, massage, air treatment and beauty categories.

There are few ASX shares as reliable as Shaver Shop for dividend income over the past decade. It started paying an annual dividend in 2017 and hasn't cut it once since. In fact, FY24 was the only year it didn't increase dividends.

Dividend growth isn't guaranteed every year, but the company is doing several things that could help grow earnings. It's adding more stores to its network, expanding its own brand (called Transform-U), agreeing to additional exclusive products with brands, benefiting from increased scale and working on its online presence.

Currently, its grossed-up dividend yield is 10.8%, including franking credits, which is extremely attractive in my view.  

Hearts and Minds Investments Ltd (ASX: HM1)

Hearts & Minds is a listed investment company (LIC) that operates very differently to a typical LIC.

Instead of management fees or performance fees – which are non-existent for shareholders in this LIC – it donates money to Australian medical research each year.

How are the picks chosen? A majority of the portfolio is decided by a group of core portfolio managers, with those picks being quality businesses with good long-term prospects.

A minority of the portfolio is decided at an investment conference where experts pitch their best pick. The picks are diverse across sectors and geographically, which I think is a useful positive. All of the top picks are internationally-listed shares, giving investors different exposure to what you might get from an ASX share fund.

In my view, it's providing a very pleasing river of dividends. The company has built up a large profit reserve and committed to growing its dividend every six months by 0.5 cents per share.

That means, over the next 12 months, its two half-year dividends could amount to 20.5 cents per share. That translates into a likely grossed-up dividend yield of 10%, including franking credits.

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I wouldn't buy just anything, though. I'd want to ensure I have a high degree of confidence that the business is going to continue delivering stable (and hopefully growing) payouts.

Let's look at two of the highest-yielding ASX shares that I expect to continue to deliver good dividends.

Hearts and Minds Investments Ltd (ASX: HM1)

This is a listed investment company (LIC) that can give significant passive income and a compelling level of diversification.

LICs are companies that simply invest in other shares to help them generate returns. Dividends can then be funded from those investment profits.

Hearts & Minds is quite different to most other LICs. Firstly, there are no management fees or performance fees. Instead, 1.5% of net assets are donated to medical research organisations.

A minority of the portfolio is decided at an investment conference where several investment experts each pitch their best idea such as Brookedale Senior Living.

A majority of the portfolio is chosen by core portfolio managers, who have (currently) chosen names like Nvidia, Microsoft, Amazon and TSMC.

Its portfolio has performed adequately over the longer-term, with an average return per year of 12.8% after expenses.

The board of the ASX share have "resolved" to increase dividends by 0.5 cents per share every six months for the foreseeable future. That means the next two dividends should amount to 20.5 cents per share, equating to a grossed-up dividend yield of 10.5%, including franking credits, at the time of writing. That's a great starting yield, in my books.

Shaver Shop Group Ltd (ASX: SSG)

The other ASX share I really want to highlight is Shaver Shop, a leading retailer in the hair removal space. It sells things like electric shavers, clippers, trimmers, and wet shave items. The company also sells items like oral care, hair care, massage and beauty categories.

Shaver Shop has impressed me with its reliable dividend over the last several years. It started paying a dividend in 2017 and has increased it every financial year since, aside from FY24 when it maintained it at 10.2 cents per share.

The last two half-year dividend payments total 10.3 cents, which translates to a grossed-up dividend yield of 11.5%, including franking credits, at the time of writing.

If the business continues its reliable dividend record, then I'd expect the next 12 months to offer that level of passive income for shareholders.

I view hair removal as a fairly consistent sector considering how hair just keeps growing – it's more defensive than I think some investors give it credit for.

Shaver Shop has a number of levers it can pull it grow earnings, including adding more stores to its ANZ network, selling more online, growing its private label brand (Transform-U), signing additional exclusive agreements with quality brands, and selling more products in other categories like oral care, hair and beauty.

According to the projection on CMC Invest, it's valued at just 11x FY26's estimated earnings.

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At the close of the ASX on Wednesday afternoon, Shaver Shop shares had fallen 1.57% to $1.26 a piece.

The drop means that ASX dividend stock's shares are now down around 16% for the year-to-date and are 5% lower than this time last year.

As a discretionary retail business, which sells personal grooming products online and in store, Shaver Shop shares are sensitive to changes in consumer spending.

That means the company has faced headwinds from higher inflation and cost of living woes this year. Consumers have cut bank on discretionary spending while finances are tight, and this has had a negative impact on the company's revenue and earnings growth.

Earlier this year, Shaver Shop posted a positive but modest FY26 half-year result, but it came short of investor expectations.

The ASX dividend stock was also removed from the All Ordinaries Index (ASX: XAO) as part of a quarterly rebalance in March, further damaging investor sentiment.

Some investors might be put off by the falling share price and company headwinds. But I think the latest dip presents a rare opportunity to buy the high-yielding ASX dividend stock for cheap.

Here's why.

Consistent long-term dividends

The ASX dividend stock has paid a regular semi-annual dividend payment to shareholders for years. 

Shaver Shop started paying a dividend to investors in 2017 and has gradually increased its annual payout each year ever since, with the exception of FY24 when the dividend payment was unchanged.  

A reasonable valuation

The business is currently trading on a price to earnings (P/E) ratio of around 11. This is relatively low compared to many other ASX consumer stocks.

The benefit of a lower P/E ratio is that it can help support a higher dividend yield.

A high yielding ASX dividend stock

The ASX dividend stock most recently paid investors an interim dividend of 4.8 cents per share, fully franked, in March. 

The ASX dividend share's latest two half-year dividends total 10.3 cents per share. That translates into a grossed-up dividend yield of around 8%, including franking credits, at the time of writing.

The retailer is forecast to pay shareholders between 10.5 cents and 10.9 cents per share for FY26.

Growth plans in place

Shaver Shop is continuing to push forward with plans to grow its profits and increase its dividend paying for investors. 

This ASX dividend stock is driving growth by expanding its store network in Australia and New Zealand, boosting online sales, launching private brands like Transform-U, and securing exclusive supplier agreements.

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However it's important to recognise this is an average, which means it's not a steady rise every single year. 

Unfortunately for ASX investors, 2026 is shaping up as a down year for the benchmark index. 

Many pundits actually predicted this back at the start of the year. 

Inflation, rising interest rates and global conflict have all weighed on sentiment. 

At the time of writing the ASX 200 is essentially flat compared to the start of 2026. 

Why turn to dividend investing?

When capital gains are stagnating, dividend investing can provide investors with a valuable source of returns that is largely independent of share price movements.

Rather than relying solely on a rising market, dividend investors are paid to hold quality businesses that generate consistent cash flow and share a portion of their profits with shareholders.

This can be particularly attractive during periods of uncertainty, when market volatility makes capital growth harder to come by.

Better yet, some ASX dividend shares are currently offering yields that comfortably exceed what investors can earn from term deposits or savings accounts.

With that in mind, here are three ASX dividend shares that could help investors block out the market noise and lock in a yield of up to 11%.

Shaver Shop Group Ltd (ASX: SSG)

While Shaver Shop Group flies under the radar compared to blue-chip giants, it boasts one of the best yields on the ASX. 

The company engages in selling personal grooming products through their corporate and online stores and generates income from franchise stores. It retails various products across the oral care, hair care, massage, air treatment, and beauty categories.

The business currently offers a trailing grossed-up dividend yield of approximately 11%, including franking credits. 

What's even more pleasing for investors, is this has been consistent dating back to 2017. 

Centuria Office REIT (ASX: COF)

Centuria Office REIT is Australia's largest pure-play office real estate investment trust (REIT). It owns a $2.3 billion portfolio of office and commercial property assets throughout Australia.

Real estate stocks have largely struggled in 2026, and Centuria Office REIT has seen its share price fall as a result. 

However on the positive side, its expected FY26 distribution of 10.1 cents per security translates into a dividend yield of around 11%.

Fortescue Ltd (ASX: FMG)

Fortescue currently sits as one of the largest iron ore production and exploration companies in the world. 

ASX materials stocks like Fortescue have long been targeted by dividend investors for their consistent payouts. 

In good news for dividend investors, this is expected to continue in the next few years. 

This ASX dividend stock is expected to pay a yield between 4% and 5% until FY28. 

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Shaver Shop is one of the leading shaving product retailers in Australia and New Zealand, with its physical store network of well over 100 locations, its website and a presence on third-party marketplaces.

You may not think of a retailer as a strong ASX dividend share candidate for passive income, but I'm about to outline why it's a compelling option.

Dividend yield

The first thing I want to highlight is, of course, the huge dividend yield of the business.

We can't know what the FY26 annual dividend per share will be – that's up to the Shaver Shop board of directors to decide in the coming weeks.

However, I do expect the annual dividend will be very similar – perhaps exactly the same – compared to the FY25 payout. The FY25 payout was 10.3 cents per share.

Therefore, at the time of writing, the business has a trailing grossed-up dividend yield of 11.1%, including franking credits. I believe the FY26 dividend will be very close to that level.

Payout stability

One of the main reasons why I'm confident that the business will deliver a stable (or higher) payout for investors is because the business has already demonstrated a track record of providing stability to investors.

Shaver Shop has not given shareholders a dividend payout reduction. The ASX dividend share started paying a dividend in 2017, increased its annual payout each year to FY23, maintained the payout in FY24 and hiked the dividend again in FY25.

We'll see what happens in FY26, but there is breathing room with the dividend payout ratio. In FY25 it generated 11.5 cents of earnings per share (EPS) and cash EPS of 12.1 cents.

Earnings growth potential

The business is trading at a low price/earnings (P/E) ratio, even before taking into account the fact that it can grow earnings from its FY25 level.

According to the projection on CMC Invest, the business could generate EPS of 11.6 in FY26, 12.8 cents in FY27 and 14.1 cents in FY28.

Therefore, the ASX dividend share is trading at under 12x FY26's estimated earnings and it's projected to grow EPS by 21% between FY26 to FY28.

I think the business can grow its earnings through initiatives like store network expansion, gross profit margin improvement, online sales growth, more exclusive products from brands, expansion of its own brand Transform-U and potential product range growth in areas like oral health, hair care and beauty categories.

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Businesses can offer a good dividend yield, but it's the potential for organic capital and dividend growth that puts them ahead of a term deposit, in my view.

There are plenty of great ASX dividend shares with yields below 8%, so we don't necessarily need to choose only high-yielding ideas, but this article is about those with exceptionally high yields, like the two below.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is one of the largest listed investment companies (LICs) on the ASX. Its goal is to actively invest in large, high-quality businesses on the ASX.

At the end of April, some of its largest positions were names like Wesfarmers Ltd (ASX: WES), Rio Tinto Ltd (ASX: RIO), REA Group Ltd (ASX: REA), National Australia Bank Ltd (ASX: NAB), Macquarie Group Ltd (ASX: MQG), Goodman Group (ASX: GMG), BHP Group Ltd (ASX: BHP), and Alcoa Corporation (ASX: AAI).

As a LIC, the business is able to turn profits from investment returns generated into paying dividends.

Its solid investment returns have enabled the business to steadily increase its dividend each year since FY17, a pleasing record of consistency.

Its investment returns, before fees, expenses, and taxes, have averaged 11.9% per year since inception in May 2016. That's almost 3% per year better than its benchmark, though past outperformance is not a guarantee it will continue to deliver future outperformance.

It expects to pay an annual dividend per share of 9.6 cents in FY26, translating into a grossed-up dividend yield of 10.5%, including franking credits. It's one of the few ASX dividend shares with a double-digit yield that I'd be willing to buy, and I expect it can continue to slightly increase the dividend each year.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is an ASX retail share that sells a variety of hair removal products, including a number of exclusive products from high-quality brands. It also has its own brand called Transform-U.

Impressively, the business started paying a dividend in 2017 and hasn't cut its payout since, despite various wider financial impacts during that period.

It has increased its dividend every year, except FY24, when it maintained the dividend. We'll see what it pays in FY26.

The ASX dividend share's latest two half-year dividends come to 10.3 cents per share. That translates into a grossed-up dividend yield of 11.3%, including franking credits.

Shaver Shop is doing its best to continue growing profits and hiking its dividend. Its plans include opening more stores across Australia and New Zealand, expanding its Transform-U product range, selling more online, and perhaps working with additional shaver brands.

According to the forecast on CMC Invest, the Shaver Shop share price is valued at 11 times FY26's estimated earnings.

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Investors wanting to grow wealth relatively quickly may not necessarily want high levels of passive income because that could mean paying more of the return to the Australian Taxation Office. Capital gains aren't taxed until an asset is sold.

However, for investors in retirement or who have a low tax rate, ASX dividend shares with a large dividend yield could be a rewarding pick.

Hearts and Minds Investments Ltd (ASX: HM1)

This is one of the high-yield ASX shares that I've added to my own portfolio because of the investment exposure and high levels of passive income.

It's a listed investment company (LIC), meaning it doesn't sell products or services. Instead, the business has an investment portfolio that it aims to make investment returns with.

Dividends are paid from the positive investment returns, which allows it to pay steadily growing passive income. The company is aiming to increase its payout every six months by 0.5 cents per share.

The next two dividends to be declared should come to a total of 20.5 cents per share, which would translate into a grossed-up dividend yield of 10.3%, including franking credits.

Hearts & Minds donates 1.5% of its portfolio to medical research, it's able to do that because all of the investment picks are contributed for free by investment experts.

Some of the portfolio is decided by a core group of portfolio managers, while the rest is contributed at an annual investment conference, where some experts pick their best stock idea.

This process results in a largely global portfolio and the recent volatility could mean it's a compelling time to invest.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is a leading ASX retail share that sells a variety of hair removal products. Considering how important hair removal is for many Australians, I think the business has relatively defensive earnings for a retailer.

The business has benefited from the steady growth of its store network, as well as the expansion of its own brand called Transform-U. Building its own brand can come with higher gross profit margin and stronger control of what products it sells.

But, the ASX dividend share also has a number of exclusive products from quality shaving brands, giving it a unique selling point (USP) for customers.

Pleasingly, the business has grown or maintained its dividend every year since 2017, so we're almost at a decade of dividend reliability.

The last two half-year dividends come to a grossed-up dividend yield of close to 11%, including franking credits.

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Shaver Shop describes itself as an Australian and New Zealand specialty retailer of male and female grooming products. It aspires to be the market leader in 'all things related to hair removal'. It sells items like electric shavers, clippers, trimmers, wet shave items, oral care, hair care, massage, air treatment and beauty categories.

At the end of the FY26 half-year period, it had 126 Shaver Shop stores across Australia and New Zealand, while also having online marketplaces. It sells a wide range of brands, with some exclusive products with suppliers.

Now that you know what it does, let's take a look at why it's so compelling.

Excellent ASX passive income stock credentials

The business has one of the highest dividend yields on the ASX.

Its last two declared half-year dividends come to 10.3 cents per share. At the time of writing, this represents a grossed-up dividend yield of 10.7%, including franking credits. That's huge! It also looks like a 'real' yield to me.

Some businesses have very large dividend yields because the share price has dropped and the market is expecting a decrease of earnings (and the dividend).

Shaver Shop has paid a dividend each year since 2017. It increased its dividend every year in that time aside from FY24 when it maintained the dividend.

I think it's very likely that the business can continue to maintain its dividend at this level and possibly grow it in the longer-term. In the FY26 half-year result it maintained its interim dividend at 4.8 cents share amid 1.5% growth of net profit to $12.2 million.

Its FY25 dividend payout ratio was 89.6% of net profit, which is fairly high but sustainable because it was under 100%. It kept some of the generated profit to improve the business.

Why I think this is a great time to invest

There are a few reasons why this looks like a great time to invest.

First, at the time of writing, the Shaver Shop share price has dropped 11% since the end of February 2026, which has had a big, positive effect on the dividend yield on offer from the ASX passive income stock.

Second, the business is looking to grow its earnings through store growth, expanding its own brand (Transform-U), unlocking more exclusive products and hopefully benefit from increased scale.

Third, it's trading on a very low price/earnings (P/E) ratio. According to the forecast on CMC Markets, the business is projected to generate earnings per share (EPS) of 11.6 cents. That means it's valued at 12x FY26 estimated earnings.

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It has a large dividend yield and a track record for increasing payouts, which is rare for an ASX retail share.

The business could provide an investor with an annual income of $1,000 or more with a large enough investment. Let's look at the income potential of one of the leading Australian retailers of shaving products.

Great dividend potential

Pleasingly, the business has never given investors an annual dividend cut, which is a very pleasing record of consistency.

In fact, since it started paying a dividend in FY17, FY24 was the only year that it didn't increase its payout (so far).

Its latest two declared half-year dividends came to 10.3 cents per share, which currently translates into a grossed-up dividend yield of 10.3%, including franking credits, at the time of writing.

In the FY26 half-year result, the business decided to maintain its interim dividend at 4.8 cents per share.

If the business maintained its payout in FY26 at 10.3 cents per share, it would be a great result for shareholders because that would still represent a double-digit dividend yield, including franking credits.

Making $100 per month of passive income

The business doesn't pay a dividend every month, so we can think of the goal as an annual total and then divide that by 12.

$100 per month would translate into an annual total of $1,200.

To receive $1,200 (excluding franking credits) with an annual dividend per share of 10.3 cents, an investor would need 11,651 shares of the ASX stock.

Why it could be a good ASX stock investment for the long-term

The business has built up an impressive position and continues to grow.

Despite the challenging trading conditions, in the first six months of FY26, total sales grew 2.2% to $128.6 million, operating profit (EBIT) increased 2.5% to $18.1 million and net profit grew 1.5% to $12.2 million.

Total sales growth started strongly in the second half of FY26 to 22 February 2026, with overall growth of 3.8% and online sales growth of 12.7%.

I'm expecting the ASX stock to grow its bottom line and profit margins thanks to a slowly growing store count, more online sales, exclusive products with certain brands and growing its own Transform-U brand.

According to the projection on CMC Invest, the Shaver Shop share price is valued at just 12x FY26's estimated earnings.

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Businesses with high dividend yields aren't necessarily the best choice because those payouts could be at risk of reduction.

The following businesses have a track record of giving shareholders regular dividend increases.

Future Generation Australia Ltd (ASX: FGX)

This is a listed investment company (LIC) that enables investors to gain exposure to a portfolio of fund managers' funds who work for free and generally target smaller companies with plenty of growth potential.

These fund managers work for free to enable Future Generation Australia to donate 1% of its net assets each year to youth charities.

Some of the fund managers involved include Paradice, L1 Group Ltd (ASX: L1G), Vinva, Firetrail, Wilson Asset Management and Eley Griffiths.

Future Generation Australia has been using some of the investment profits it has made to pay out a growing dividend. It has increased its payout every year for the last decade – not many ASX dividend shares can point to a record like that.

The latest annual dividend it announced was 7.2 cents per share, representing a grossed-up dividend yield of 7.9% at the time of writing, including franking credits.

Impressively, the ASX dividend share has donated $49 million since its inception, which is an excellent initiative.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is one of the leaders in Australia in the retail of shaving products. It has 126 stores across Australia and New Zealand.

Its core product range comprises electric shavers, clippers, trimmers and wet shave items It also retails products such as oral care, hair care, massage, air treatment and beauty categories.

Pleasingly, the business has increased annual dividend per share every year since 2017 aside from FY24 when it maintained the payout.

The last two dividends paid by the business come to 10.3 cents per share. At the time of writing, Shaver Shop offers a grossed-up dividend yield of 10.9%, including franking credits.

Shaver Shop is pursuing a few different growth avenues including opening more stores across Australia and New Zealand, it's growing its own brand (Transform-U), and it's working with shaving brands to offer exclusive products.

I think this ASX dividend share is one of the best options for a dividend yield of more than 10% with its track record.

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Two ASX dividend shares stand out right now: Perpetual Ltd (ASX: PPT) and Shaver Shop Group Ltd (ASX: SSG). Both deliver attractive yields around 7%, and brokers see meaningful upside ahead.

Let's take a closer look.

Perpetual: Sharpen execution, unlock value

Perpetual is a well-known financial services group, operating across asset management, wealth management, and corporate trust. But the ASX dividend share is undergoing a major shift.

Last week, the company announced the $500 million sale of its wealth business to Bain Private Equity. The move is all about simplification. By narrowing its focus, Perpetual aims to sharpen execution and unlock value.

Management of the ASX dividend share says proceeds will be used to reduce debt and invest in organic growth across its remaining divisions. That's a positive signal for dividend sustainability.

Perpetual has a long-standing reputation in funds management and a solid institutional footprint. The business is becoming leaner, which could improve margins over time.

However, earnings can be sensitive to market movements. Funds under management can fluctuate, and execution risk remains as the company reshapes itself.

This ASX dividend share shines when dividend payouts come into play. Analysts at Macquarie expect a 7% dividend yield this financial year, easing slightly to 6.7% in FY27 and 6.4% in FY28. That's still comfortably above market averages.

And there's potential capital upside too. Macquarie has a bullish price target of $24.60 on the ASX dividend share. The broader consensus sits at $20.32, about 26% above current levels.

Shaver Shop Group: Strong niche, growing online sales

Shaver Shop is one of the region's leading retailers of personal grooming products. Think electric shavers, clippers, trimmers, and wet shave essentials. It operates 126 stores across Australia and New Zealand, alongside a growing online channel.

This is a steady, cash-generative retail business. Grooming products tend to have repeat demand, and Shaver Shop has built a strong niche. Its online sales are also gaining traction.

Recent numbers back that up. In the second half of FY26 to 22 February 2026, total sales rose 3.8%, while online sales jumped 12.7%. That kind of growth can support future earnings — and dividends.

Like all retailers, this ASX dividend share is exposed to consumer spending cycles. Cost pressures and competition could also weigh on margins.

Shaver Shop has an impressive dividend track record. It increased its dividend every year from 2017 to 2023, held steady in 2024, and nudged it higher again in FY25.

Right now, the stock offers a grossed-up yield of 10.7%, including franking credits. That's exceptionally high.

And it's not just about income. Analysts see upside in the share price too, with an average target of $1.71. That's a 29% upside at current levels.

The bottom line

Perpetual and Shaver Shop tick two key boxes: strong passive income and growth potential.

They're not risk-free. No dividend stock ever is. But with yields around 7% or higher and double-digit upside on offer, both are worth a closer look for income-focused investors.

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There's no specific yield that's the right level – it depends on how much passive income an investor is trying to generate from their portfolio. The higher the yield goes, the riskier/less reliable it may be.

But, there are a few ASX shares that offer a very large dividend yield, but have also offered consistent payouts.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is one of the largest retailers of male and female grooming products including electric shavers, clippers, trimmers and wet shave items. The company has 126 Shaver Shop stores across Australia and New Zealand.

The company has a very steady dividend record. It increased its annual dividend per share every year between 2017 to 2023, maintained it in 2024 and then grew it slightly in FY25.

At the time of writing, it has a grossed-up dividend yield of 10.7%, including franking credits, which is incredibly attractive, in my view.

I think dividend growth looks likely because in the second half of FY26 to 22 February 2026, it reported total sales growth of 3.8% and online sales growth of 12.7%.

With initiatives like growing its store network, increasing online sales, expanding its own brand (Transform-U) and working with additional brands for exclusive products.

Future Generation Global Ltd (ASX: FGG)

I really like listed investment companies (LICs) as passive income options because of how they can determine what size dividend to pay each year, assuming they have the profit reserves to do so.

Future Generation Global has invested in a number of funds that are focused on international shares. I like this strategy because it means being able to hunt for opportunities from across the world, giving great diversification and a good opportunity to find high-performing investments.

Pleasingly, the fund managers don't charge management fees (or performance fees). Instead the LIC donates 1% of its net assets each year to youth mental health charities.

The ASX share has increased its annual payout each year starting in 2019, which is an impressive record of dividend growth considering everything that has happened between now and then.

Ignoring the recently-announced special dividend of 3 cents per share, its 2025 annual regular dividend came to 8 cents per share, representing a year over year increase of 8.1% year-over-year.

The 8 cents per share payout for FY25 translates into a regular grossed-up dividend yield of 7.3%, including franking credits. I think that's a great starting point for the dividend income.

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I'm not about to suggest that Aussies go out there and try to find a 15% dividend yield.

But, if we invest right, investors could end up generating a 15% yield on their initial investment. It will take some patience, though.

It's important to remember that some large dividend yields may not stand the test of time. A dividend cut may be on the cards for businesses that seem to have huge yields because investors have pushed the share price lower, betting that earnings and the payout are going to drop in the near future.

 I think there are two ways where we can unlock a large dividend yield of 15% (or more). Let's look at how.

Big starting dividend yield

I wouldn't expect any business to offer a sustainable starting dividend yield of 15%. But, there are some with yields of between 9% to 11% where I expect the business can maintain and slowly grow its payout in the coming years.

While it might take a while to reach 15%, I think this sort of business could deliver a big dividend yield at the start and become even larger over time.

There are some names that come to mind for large payouts such as WAM Microcap Ltd (ASX: WMI), Hearts and Minds Investments Ltd (ASX: HM1) and Shaver Shop Group Ltd (ASX: SSG).

With those sorts of dividend yields, if someone invested $10,000 then they could unlock $1,000 of annual income straight away.

Dividend growth

While huge yields may appeal to some investors, it could be a better call to look at businesses that are growing their payout at a faster pace. That could lead to stronger total shareholder returns (TSR) and eventually the yield could surpass what a higher-yielding business offers.

For example, if a 10% yielding business grows its payout by 2% per year, it becomes 15% yield in around 20 years. A business with a 5% dividend yield that's growing the payout at 10% per year becomes a 15% dividend yield on the initial investment after 12 years.

Of course, we can't know for sure what businesses are going to do with their payouts over the next decade or more.

What sort of businesses have a solid starting payout today and could deliver strong dividend growth over the longer-term?

I'd look at apparel retailer Universal Store Holdings Ltd (ASX: UNI), jewellery retailer Lovisa Holdings Ltd (ASX: LOV), investments business Pinnacle Investment Management Group Ltd (ASX: PNI) and ethical fund manager Australian Ethical Investment Ltd (ASX: AEF).

Either way, I think there are some very exciting investments out there for investors looking for a lot of passive income.

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A good passive income stock is one that can provide resilient dividends and grow its underlying value over time.

There's not much point buying high-yield ASX dividend shares if the share price and dividend decline over time.

So, I'm going to highlight two high-yield names that have a record of consistency and I think could deliver rising payouts over time.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop has a goal to become the leader of hair removal products in Australia, with its national store network selling a variety of male and female wet and dry shave products.

The company recently released its FY26 half-year result which included positive numbers.

In the six months to 31 December 2025, sales grew 2.2% to $128.6 million, operating profit (EBIT) grew 2.5% to $18.1 million and net profit after tax (NPAT) climbed 1.5% to $12.2 million.

Pleasingly, online sales increased by 7.4% and the gross profit margin grew 100 basis points (1.00%) to 46.5%). The main driver of the ASX dividend share's gross profit improvement was the expansion of its private brand Transform-U.

Work on the store network in the HY26 period is supportive sales growth in the second half of FY26 and FY27. It opened two locations in the first half, with another one planned to open in March 2026. It also refitted one full store and relocated one in the half, with three full store refits and two relocations planned for the second half.

All of the above helped the business maintain its annual dividend per share at 4.8 cents per share in the HY26 result.

In terms of passive income appeal, the ASX dividend share increased its payout each year between FY17 and FY23, maintained it in FY24 and then grew it again in FY25 to 10.3 cents per share. That translates into a grossed-up dividend yield of 9.4%, including franking credits, assuming it just kept the dividend the same in FY26.

In the second half of FY26 to 22 February 2026, total sales grew 3.8%. I think this bodes well for another dividend increase in FY26, particularly if Transform-U continues growing.

Hearts and Minds Investments Ltd (ASX: HM1)

The other high-yield ASX dividend share I want to highlight is Hearts & Minds, a listed investment company (LIC).

Pleasingly, there are no management fees or performance fees involved with the portfolio. Instead, it donates 1.5% of its net assets each year to medical research to a variety of organisations. This could unlock life-changing, or life-saving, medical advancements.

The Hearts & Minds portfolio is constructed from two different sources. First, there's a core group of fund managers that make picks for the portfolio. Second, it holds an annual investment conference where leading investment professionals choose a single stock that could perform.

This approach provides both diversification and can lead to solid returns. The three years to December 2025 showed an average portfolio return of 14.7% per year. That's a high enough return to fund a large and growing dividend, while also seeing growth in the portfolio value.

Hearts & Minds recently declared a half-year dividend of 9.5 cents and intends to increase its payout by 0.5 cents per share every six months for the foreseeable future. The implied annual dividend per share of 19.5 cents for FY26 translates into a grossed-up dividend yield of 9.4%, including franking credits.

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But I wouldn't buy any business for passive income just because it has a good yield. Dividends can be cut, so it's important to consider what will help the business continue that dividend streak.

I'd also want to see that the business has a history of not cutting the dividend. Past reliability is not a guarantee, but it's a useful indicator of what can happen during different economic conditions.

WAM Microcap Ltd (ASX: WMI)

This is a listed investment company (LIC) that's operated by the team at Wilson Asset Management (WAM). It's focused on finding the best opportunities in the ASX small-cap share end of the market.

The ASX share's FY25 payout translates into a grossed-up dividend yield of just over 9% (at the time of writing), including franking credits, which was a slightly higher payout than the FY24 dividend.

It has been very consistent: it increased its regular annual payout each year between FY18 and FY23, maintained it in FY24, and then hiked it again in FY25. In other words, there have been no dividend cuts in its existence.

WAM Microcap has managed to fund its dividend thanks to the investment returns its portfolio has generated. At the end of December 2025, its portfolio had returned an average return per year of 16.7% since inception in June 2017, before fees, expenses, and taxes.

It already has a profit reserve of around five years of dividends at the current level, and I think it can continue funding slightly bigger payouts. The small end of the share market is compelling for finding investment opportunities due to its growth potential.  

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is one of Australia's underrated ASX dividend shares, in my opinion.

It retails a wide array of hair removal products in Australia and New Zealand, with both male and female products across its store network and website.

Shaver Shop increased its payout each year from 2017 to 2023, maintained the dividend in FY24, and then increased it slightly in FY25. Its FY25 grossed-up dividend yield is around 9.5% at the time of writing, including franking credits.

I think the business has quite defensive earnings – hair grows in all economic conditions. That makes for consistent demand for its products, in my view.

Shaver Shop is one of the leaders in hair removal retailing, which is why multiple shaving brands have agreed to exclusive products with the business. This helps the ASX share provide unique products and deliver a stronger gross profit margin.

Shaver Shop is also working hard at expanding its own brand called Transform-U, helping it fill in different products across its overall range, which means a stronger gross profit margin on those sales.

It can grow earnings as it expands its store network, sells more online, and expands its Transform-U range.

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