In the world of investing, finding stable and reliable sources of passive income is a top priority for many investors. Australia's ASX market offers a plethora of opportunities, particularly in the realm of dividend-paying stocks. Today, we delve into two ASX dividend shares that boast yields above 7%, providing a solid foundation for investors seeking regular income and potential capital gains. These stocks, Dexus Industria REIT (ASX: DXI) and Universal Store Holdings Ltd (ASX: UNI), are carefully selected for their strong fundamentals and promising outlooks. Dexus Industria REIT, a real estate investment trust (REIT), owns a diverse portfolio of industrial properties strategically located across Australian cities. The industrial sector is experiencing a surge in demand, driven by the growth of e-commerce, data centers, and refrigerated space for both food and medicine. This demand is expected to continue, making industrial properties a compelling investment choice. In the 2025-2026 financial year, Dexus Industria REIT reported impressive results, including a 5.3% like-for-like portfolio income growth, supported by rental escalations, strong releasing spreads, and a high occupancy rate of 98.8%. Despite the current high-interest rate environment, the REIT is confident in maintaining its distribution at 16.6 cents per security for the 2026-2027 financial year, translating to a forward distribution yield of 7%. Universal Store Holdings Ltd, on the other hand, operates multiple businesses under its umbrella, including Universal Store, Perfect Stranger, and CTC, with the THRILLS and Worship brands. The company has demonstrated remarkable resilience in a challenging operating environment, achieving 12.9% sales growth to $376.1 million and 16.3% underlying net profit growth to $40.5 million in the 2025-2026 financial year. This performance has allowed the company to increase its annual dividend per share by 11.7% to 43 cents. The Universal Store business, in particular, has shown impressive like-for-like (LFL) growth, with its existing stores contributing 8.1% LFL growth, while Perfect Stranger achieved 13% LFL growth. The company's direct-to-consumer sales have continued to rise, and management plans to expand its store network, further boosting sales and margins. Based on the 2025-2026 annual dividend payout of 43 cents per share, Universal Store Holdings Ltd has a trailing grossed-up dividend yield of 7.6%, including franking credits, at the time of writing. The company's payout is expected to grow again in the 2026-2027 financial year. These two ASX dividend shares, Dexus Industria REIT and Universal Store Holdings Ltd, offer investors a compelling combination of high yields and strong fundamentals. While it's important to remember that neither dividends nor capital growth is guaranteed, these stocks present an attractive opportunity for investors seeking stable and reliable passive income in the Australian market. As always, investors should conduct thorough research and consider their individual financial goals and risk tolerance before making any investment decisions.
