With a rising RBA cash rate, I think ASX dividend shares need to offer a good starting dividend yield to be attractive to investors looking for passive income.
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.
The post 2 ASX shares with dividend yields above 8% appeared first on The Motley Fool Australia.
Motley Fool contributor Tristan Harrison has positions in Future Generation Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Shaver Shop Group. 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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