The ASX dividend share space is where Australians can find some of the best options for passive income, in particular, companies with high dividend yields.
Ideally, I'd want to find dividend options that have a high starting dividend yield, and a good chance of maintaining their payout.
Of course, those businesses need to be able to sustainably grow their dividends too. I don't think a high dividend yield is worth much if it's very likely to be reduced soon. That's a big reason why I'm highlighting the following ideas.
WAM Leaders Ltd (ASX: WLE)
WAM Leaders is a listed investment company (LIC) offered by Wilson Asset Management (WAM).
It mostly targets large ASX blue-chip shares to generate its returns, though it's significantly more active than an exchange-traded fund (ETF) like the Vanguard Australian Shares Index ETF (ASX: VAS). It's very willing to buy and sell shares in a position to take advantage when the market is being too pessimistic or optimistic.
At the end of March 2026, some of its largest positions included Telstra Group Ltd (ASX: TLS), Rio Tinto Ltd (ASX: RIO), Woodside Energy Group Ltd (ASX: WDS), Aristocrat Leisure Ltd (ASX: ALL), Wesfarmers Ltd (ASX: WES) and Nexgen Energy (Canada) CDI (ASX: NXG).
Between inception in May 2016 and March 2026, its portfolio produced an average return per year of 11.6%, outperforming its benchmark by an average of more than 2.5% per year, before fees, expenses and taxes.
The LIC's board is expecting to pay an annual dividend per share of 9.6 cents in FY26. That translates into a grossed-up dividend yield of 10.4%, including franking credits. It has increased its annual dividend each year since FY17.
Hearts and Minds Investments Ltd (ASX: HM1)
Hearts & Minds is another LIC, though it operates quite differently.
It's invested in a concentrated portfolio if between 25 to 35 global shares based on the best ideas from respected fund managers. There are no management fees involved, which allows it to donate to leading Australian medical research.
Some of its positions include TSMC, Zillow, Nvidia, Amazon and Brookdale Senior Living.
Due to how its portfolio is constructed, it has a diversified list of holdings that could perform over the longer-term and generate good investment returns over time.
In terms of the dividend, the business is looking to increase its payout by 0.5 cents per share every six months for the foreseeable future. That means the next two dividends are likely to be 20.5 cents per share. This translates into a grossed-up dividend yield of 10%, including franking credits.
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 Hearts And Minds Investments. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Nvidia, Taiwan Semiconductor Manufacturing, Wesfarmers, and Zillow Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Amazon, Nvidia, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026