If I were investing in ASX shares to build a second income of dividends, there are a few names that really appeal to me. Namely, I’m looking at businesses that offer a good dividend yield today along with strong potential for payout growth.
Dividend growth is not guaranteed of course, but when a business provides guidance of a growing payout, then it’s more likely to come true. Plus, the two businesses discussed below have compelling tailwinds for future growth.
I normally mention a name like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) in an article like this, but I want to highlight two others to build a second income.
Centuria Industrial REIT (ASX: CIP)
This real estate investment trust (REIT) owns a portfolio of high-quality industrial properties across Australia and it’s seeing strong rental growth.
In the first half of FY26, it reported strong like-for-like net operating income (NOI) growth of 5.1%, with portfolio occupancy increasing to 95.7% .
Around 60% of leases expiring over the next three years are under-rented, according to the business, providing an opportunity to execute positive rent reversions. The reversions could be boosted in the medium-term thanks to additional market rental growth with a supply-demand imbalance.
The REIT’s management points to a number of tailwinds for the industrial property sector including population growth, sustained public infrastructure and a rebound in tenant activity.
On top of that, “national long-term supply remains constrained, driving the increased portfolio occupancy and reinforcing resilient demand for the style of industrial assets” that the REIT owns in “urban infall markets”.
The ASX share is also benefiting from strong demand for data centres. It has made recent acquisitions and development initiatives in this space, including the lodged development application for a new 40MW data centre.
The business is expecting to grow its annual distribution by 3% in FY26, translating into a forward distribution yield of 5.2%, which is a great yield for Aussies building a second income.
WCM Global Growth Ltd (ASX: WQG)
One of the best benefits of listed investment companies (LICs) is that they can decide on the level of passive income payment they want to send to shareholders, assuming they have the profit reserve to do so.
WCM Global Growth is one of those LICs that has demonstrated an ability to deliver rising dividends as well as strong portfolio performance.
The ASX share aims to own a portfolio of international shares which have improving economic moats (competitive advantages) and have corporate cultures that foster those competitive advantages.
WCM Global Growth’s portfolio has performed well using this strategy, with an average return per year of 25.5% over the last three years. The strategy has delivered an average return per year of 14.6% since March 2008. Of course, it’s not guaranteed to perform that strongly in future years.
The business announced that it expects to grow its payout for the quarter ending 30 September 2026 by 14.8%, implying a potential annualised grossed-up dividend yield of 7%, including franking credits, at the time of writing.
I think this ASX share could be one of the most compelling to own over the long-term for building a second income.
The post Want to build up a second income? These 2 ASX shares are a buy appeared first on The Motley Fool Australia.
Should you invest $1,000 in Centuria Industrial REIT right now?
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* Returns as of 1 Jan 2026
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More reading
- Guess which ASX 200 stock Bell Potter rates as a buy
- Centuria Industrial REIT grows earnings and holds guidance for HY26
- 2 ASX REIT stocks I want to buy for a lifetime of passive income!
- Why this ASX dividend share’s a retiree’s dream
- Is this the right time to invest in ASX defensive shares?
Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.