I think ASX shares with high dividend yields are very appealing because of the passive income they generate.
Dividends can be more consistent than share prices, giving investors a certain level of consistency. Of course, dividends are not guaranteed payments like a term deposit.
I really like the two names below, both of which have track records of growing dividends. I'm optimistic their dividends can continue to grow for the foreseeable future
WAM Leaders Ltd (ASX: WLE)
WAM Leaders is a listed investment company (LIC) that targets quality larger ASX shares that could generate compelling returns.
As examples of the sorts of names in the portfolio, some of the top-20 positions at the end of June 2026 included Aristocrat Leisure Ltd (ASX: ALL), Amcor (ASX: AMC), BHP Group Ltd (ASX: BHP), Charter Hall Group (ASX: CHC), Mirvac Group (ASX: MGR), NexGen Energy (Canada) CDI (ASX: NXG), Rio Tinto Ltd (ASX: RIO), Scentre Group (ASX: SCG), Woodside Energy Group Ltd (ASX: WDS) and Wesfarmers Ltd (ASX: WES).
By being active with its portfolio, Wilson Asset Management is able to buy and sell at opportune prices. The WAM Leaders portfolio managed to achieve an average return per year of 12% between May 2016 to June 2026, outperforming the S&P/ASX 200 Accumulation Index (ASX: XJOA) by almost 3% per year, before fees, expenses and taxes.
WAM Leaders started paying dividends in FY17 and has grown the annual dividend per share every year since. That means it has given shareholders almost a decade of increases.
The FY26 annual dividend of 9.6 cents per share translates into a grossed-up dividend yield of 9.8%, including franking credits, at the time of writing. I think its dividend growth can continue thanks to its sizeable profit reserve of approximately 27 cents per share.
Universal Store Holdings Ltd (ASX: UNI)
This business owns multiple quality retail apparel brands, providing premium apparel products to younger shoppers. It's best known for its Universal Store business, and also has Perfect Stranger and CTC (with the Worship and THRILLS brands).
Universal Store has an impressive dividend record for a retailer – it started paying a dividend in FY21 and the payout has increased each year since then. Not many retailers can say they have delivered that level of passive income consistency over the past five years.
Dividend growth looks very promising for the foreseeable future because of earnings growth. In FY26 to week 43, Universal Store sales were up 11.8%, Perfect Stranger sales were up 39.8%, and CTC sales were up 14.5%.
For FY26, the business expects to report, at the mid-point of its guidance, sales growth of 11.5% and underlying operating profit (EBITA) of 15.4%.
Amid the ongoing progress of the overall business and ongoing store network expansion, analysts think the dividends could continue to grow. The forecast on CMC Invest implies the business could pay a grossed-up dividend yield of 8.3% in FY27, including franking credits, at the time of writing.
These are two compelling businesses with high dividend yields, though they're not the only stocks I'd look at for solid income.
The post 2 ASX shares with dividend yields above 8% appeared first on The Motley Fool Australia.
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended BHP Group, Universal Store, and Wesfarmers. 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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