185,715 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension

Centuria Industrial REIT (ASX: CIP) is one of the high-yield ASX dividend stocks I’d be very happy to rely on for passive income rather than receive the Age Pension.  

While the ASX share market is a great place to find ideas that can help deliver passive income, there are relatively small number of names I’d be willing to significantly invest in.

This real estate investment trust (REIT) is one of the names I really like.

There is an appeal to REITs because of how defensive and predictable their income is, as rental income is contracted with tenants. REITs like this one have a range of high-quality tenants including Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW), Arnott’s, AWH, Visy and Fantastic Furniture.

Why this ASX dividend stock is more appealing

The Centuria Industrial REIT owns a portfolio of high-quality industrial properties that are located in high-demand areas where the vacancy rate is low. This is helping drive up the rental income potential of the properties.

Another benefit of this investment is that owning all of these industrial properties, the ASX dividend stock offers investors significant asset backing, providing pleasing downside protection. The Age Pension does not have a large asset base that can be sold.

It’s also delivering good rental growth compared to many other property sectors. Industrial property is benefiting from tailwinds like e-commerce adoption, the onshoring of supply chains and data centres.

In the first half of FY26, the business reported 5.1% like-for-like net operating income (NOI) growth, which is a good growth rate for a REIT, in my view. Excitingly, the business reported that its portfolio was 20% under-rented, which suggests strong rental growth as contracts come up for renewal in the coming years – the business currently has a weighted average lease expiry (WALE) of more than six years.

The business grew its FY26 distribution by 3% year-over-year, which is a solid rate of growth amid higher interest rates. Over the longer-term, I think the business could have a very compelling future.

The final thing I’ll note is that the business is trading at a very large discount to its underlying value, which is measured as the net tangible assets (NTA) per unit. At December 2025, it had NTA of $3.95 per unit – that means it’s trading at a discount of close to 25%.

How many shares I’d need to match the Age Pension

Currently, the maximum Age Pension that an Australian can receive is around $31,200 per year.

Based on the FY26 annual payout of 16.8 cents per security, that level of passive income translates into a forward distribution yield of 5.6% (at the time of writing).

To receive $31,200 of annual income, an investor would need 185,715 Centuria Industrial REIT shares. While that would be a huge investment for most Australians, I’d be happy to make that purchase because of how cheap it is and what it can offer passive-income investors.

But, it’s not the only high-yield ASX dividend stock I’d buy for dividends.

The post 185,715 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.