Investors seeking reliable passive income streams may find opportunities in ASX dividend stocks, which are known for their potential to generate substantial cash flow. By strategically investing $3,500 across three specific stocks, investors could unlock an annual passive income of $331 by 2026 and beyond.
These businesses offer attractive dividend yields, driven by generous payout ratios and low valuations. While dividends are not guaranteed, the following companies show promise in maintaining their payouts.
Shaver Shop Group Ltd: A Retail Underdog with Growth Potential
Shaver Shop Group Ltd (ASX: SSG) is an often-overlooked retailer aiming to dominate the hair removal market for both men and women. The company sells a range of products including electric shavers, clippers, trimmers, and wet shave items, as well as products in oral care, hair care, massage, air treatment, and beauty categories.
Since 2017, Shaver Shop has consistently increased its dividend payouts, with the exception of 2024 when the payout was maintained. Currently, the stock is trading at less than 13 times its expected FY25 earnings, offering a grossed-up dividend yield of 10.2%, inclusive of franking credits.
Shaver Shop’s strategy to expand its store network and grow its proprietary brand, Transform-U, is expected to bolster its financial performance. Additionally, the company’s margins could improve as it scales up and increases sales of private and exclusive products.
Bailador Technology Investments Ltd: Investing in the Future of Tech
Bailador Technology Investments Ltd (ASX: BTI) focuses on acquiring stakes in private technology companies. Its diverse portfolio includes businesses in hotel management, financial advice, digital healthcare, telehealth, and AI-enabled property investment, among others.
Bailador seeks companies that are founder-led, possess proven business models, generate international revenue, and have significant market opportunities. The company aims to provide a dividend yield of 4% of its net tangible assets (NTA), but due to its current trading discount of approximately 40% to the November 2025 pro-forma NTA of $1.98, it offers a dividend yield of 6.6%, or 9.4% with franking credits.
Centuria Office REIT: Navigating the Challenges of the Office Sector
The office real estate sector has faced significant challenges in recent years, largely due to the rise of remote work and increased interest rates. Centuria Office REIT (ASX: COF) has seen its unit price fall by over 50% since September 2021. However, there are indications that the company may be undervalued, offering potential for passive income.
Trading at a discount of more than 30% to its stated NTA of $1.67 as of June 30, 2025, Centuria Office REIT is actively pursuing leasing and capital management strategies to navigate the fragmented office market. According to fund manager Belinda Cheung, the company is well-positioned to benefit from future market adjustments.
“COF continues to execute its strategy through active leasing as well as asset and capital management initiatives. Despite this, the office leasing momentum remains fragmented across Australian office markets,” said Cheung.
Looking ahead, Centuria Office REIT expects to pay a distribution of 10.1 cents per unit in FY26, equating to a potential distribution yield of 8.8%.
Conclusion: A Promising Start to Passive Income
Collectively, these three ASX dividend stocks offer an average yield of nearly 9.5%. With an investment of $3,500, this translates to an annual passive income of $331, providing a promising foundation for investors seeking steady returns.
The announcement comes as investors increasingly seek out dividend stocks for reliable income amid economic uncertainties. By focusing on companies with strong fundamentals and growth potential, investors can position themselves to benefit from both income and capital appreciation in the years to come.
