Australian investors who wish to receive passive income in the form of dividends have two routes they can take on the ASX. The first is by buying individual ASX stocks that pay out dividends to their shareholders. This is probably still the most popular choice for many ASX investors seeking regular income. But the second path, investing in ASX exchange-traded funds (ETFs) for income, is growing in popularity.
There are many dividend-focused ETFs on the ASX. Some popular choices include the Vanguard Australian Shares High Yield ETF (ASX: VHY) and the SPDR MSCI Australia Select High Dividend Yield ETF (ASX: SYI).
But today, let's discuss two lesser-known income funds that I think have the potential to give any passive income seeker a significant boost in cash flow today.
2 ASX ETFs that can help maximise your dividend income today
BetaShares Global Royalties ETF (ASX: ROYL)
Royalties stocks aren't a common go-to for income seekers on the ASX, but this may be to their detriment. This ETF from Betashares holds a portfolio of stocks that receive regular royalty payments and pass these along to their investors in the form of dividends.
ROYL holds companies that mostly span three different industries: mining and energy, intellectual property, and financing. Some of its largest holdings include Wheaton Precious Metals, Universal Music Group, and ARM Holdings. Royalty payments can be an attractive form of income, as they tend not to be as influenced by the economic cycle as other popular income investments.
The Betashares Global Royalties ETF pays a monthly dividend distribution to investors – a policy it began in 2025. As of 31 July, the ETF was trading on a trailing yield of 3.5%. This fund has averaged a return of 17.68% per annum since its inception in September 2022.
BetaShares S&P Global High Dividend Aristocrats ETF (ASX: INCM)
This fund, also from provider Betashares, has had a makeover this month. Formerly known as the Betashares Global Income Leaders ETF, it now focuses on holding companies from advanced economies outside Australia that have either maintained or increased their dividend payments for at least ten consecutive years.
I like this change of focus, as it is my belief that a consistent dividend is one of the strongest indicators that a company can be a market-beating investment. Some of the stocks that you'll find in the INCM portfolio currently include Microsoft Corporation, Broadcom, Apple, Exxon Mobil, Johnson & Johnson, and Texas Instruments Inc.
This ETF pays out quarterly dividend distributions. Its last four total $1.16 per unit, giving the Betashares High Dividend Aristocrats ETF a trailing yield of 6.04% at current pricing.
The post Maximise your dividend income with these 2 ASX ETFs appeared first on The Motley Fool Australia.
Motley Fool contributor Sebastian Bowen has positions in Apple and Microsoft. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, and Texas Instruments. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Broadcom and Johnson & Johnson and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Apple, Microsoft, and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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