
ASX dividend shares are my top way to create passive income because of how easy it is to invest and hold for the long-term while receiving dividends.
I love how we can build a portfolio piece by piece and create a river of dividends. The investments I’m going highlight offer investors a good dividend yield and I’m confident they can grow their payouts over time.
Let’s dive in with what I’d happily buy with $3,000.
Bailador Technology Investments Ltd (ASX: BTI)
I think the last 20 years have shown that technology is one of the best, if not the best, places to invest.
Software businesses are able to deliver great gross profit margins, strong bottom lines and they usually don’t have any physical limitations of growth compared to others needing to increase production, open a new store or new warehouse to grow further.
Bailador is a company that invests in private technology businesses whilst they’re still in a rapid growth phase. Its current portfolio includes businesses involved in digital healthcare, hotel management, financial advice and investment management, tours and activities, property investment, volunteer management, fitness and wellness, and so on.
The portfolio is growing at a rapid speed â Bailador’s portfolio company revenue growth was 47% in FY25, which bodes well for increasing the underlying value of those businesses over time.
The ASX dividend share aims to pay investors a dividend yield of 4% relative to the pre-tax net tangible assets (NTA). But, due to the fact the Bailador share price is at a 36% discount (at the time of writing) to the NTA, it has a dividend yield of 6.3%, or 9% including franking credits.
Future Generation Australia Ltd (ASX: FGX)
This business is a listed investment company (LIC) that invests a portfolio of ASX share-focused funds from various fund managers who work for free so that Future Generation Australia can donate 1% of net assets to youth charities each year.
There are no management fees or performance fees. With the investment/accounting profits the ASX dividend share makes, it’s paying a growing dividend that has grown every year for the past decade. Not many ASX businesses can claim to have done that.
This investment can provide Aussies with diversification thanks to the funds giving exposure to hundreds of underlying businesses.
Its latest announced dividends come to a grossed-up dividend yield of 7.7%.
WCM Quality Global Growth Fund (ASX: WCMQ)
This is an exchange-traded fund (ETF) targets a 5% dividend yield, balancing passive income and capital growth.
WCM is looking for global stocks it thinks have expanding competitive advantages (economic moats) and business cultures that help expand the competitive advantage.
With a portfolio of US and non-US shares, the fund is able to provide investors with pleasing exposure to a variety of opportunities around the world.
The strategy is clearly working because the fund has delivered average net returns of 15.9% per year since inception in August 2018. Past performance is not a guarantee of future returns, but I think it can continue to perform well. A rising net asset value (NAV) of the fund helps fund larger distributions.
The post 3 wonderful ASX dividend shares I’d buy with $3,000 right now appeared first on The Motley Fool Australia.
Should you invest $1,000 in Future Generation Investment Company right now?
Before you buy Future Generation Investment Company shares, consider this:
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* Returns as of 1 Jan 2026
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More reading
- Here’s how you could turn the stock market into a $1,000 monthly passive income machine
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- 2 ASX dividend shares with yields above 7%!
- $20,000 in excess savings? Here’s how to try and turn that into a second income in 2026
Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments and Future Generation Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments. The Motley Fool Australia has recommended Bailador Technology Investments. 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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