Commonwealth Bank of Australia (ASX: CBA) is one of the most popular dividend shares on the ASX.
It isn't hard to see why. CBA is a high-quality bank, pays fully franked dividends, and has long been a favourite with passive income investors.
Are CBA shares a good option for income investors?
CBA is forecast to pay fully franked dividends of $5.15 per share in FY 2026 and $5.45 per share in FY 2027.
Based on its current share price of $161.88, this means dividend yields of approximately 3.2% and 3.35%, respectively.
That is not too bad. But income investors may be able to do far better elsewhere on the ASX.
Here are two ASX dividend shares that could offer much larger yields.
HomeCo Daily Needs REIT (ASX: HDN)
The first ASX dividend share is HomeCo Daily Needs REIT.
This property trust owns a portfolio of assets focused on everyday spending and essential services. Its centres typically have tenants such as supermarkets, pharmacies, childcare operators, health services, and large-format retailers.
That gives it a different profile from traditional shopping centre landlords that depend heavily on discretionary spending and fashion retailers.
This means that HomeCo Daily Needs REIT is built around regular visits. People still need groceries, medical services, childcare, and household essentials regardless of what the economy is doing.
Its current yield also looks much more attractive than CBA's forecast yield. HomeCo Daily Needs REIT is expected to pay dividends per share of 8.6 cents in FY 2026 and FY 2027. Based on its current share price of $1.28, this would mean dividend yields of 6.7%.
Universal Store Holdings Ltd (ASX: UNI)
Another ASX dividend share for income investors to look at is Universal Store.
This youth fashion retailer operates brands including Universal Store, Perfect Stranger, and Thrills. It has built a strong position with younger shoppers by offering a mix of third-party labels, private brands, and trend-led fashion.
Retail can be unpredictable. Consumer confidence, cost-of-living pressure, weather, and fashion trends can all affect trading.
But Universal Store is not a traditional department store or a tired legacy retailer. It has a clear customer focus, a growing store network, and brands that resonate with its target market. That gives it scope to keep growing if management continues executing well.
The market is expecting Universal Store to pay fully franked dividends of 40.6 cents per share in FY 2026 and then 46.8 cents per share in FY 2027. Based on its current share price of $7.05, this would mean dividend yields of 5.75% and 6.6%, respectively.
The post Forget CBA and buy these ASX dividend shares appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in Universal Store. 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 HomeCo Daily Needs REIT and Universal Store. 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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