2 ASX shares with dividend yields above 7%

Given that interest rates are rising in Australia again, it could be a good time to look at ASX shares with higher dividend yields.

If we’re going to invest in ASX shares for passive income, I’d want to ensure we’re getting an attractive payout. We don’t necessarily need a dividend yield of more than 7% to call it an appealing investment.

But, the two ASX shares below are ones that I believe can offer large dividend yields in the short-term and payout growth in the long-term.

Charter Hall Long WALE REIT (ASX: CLW)

This is one of the most appealing real estate investment trusts (REITs) in my opinion because it offers a combination of yield, security and diversification.

The ASX share is invested across a variety of areas including service stations, pubs and hotels, telecommunication exchanges, data centres, distribution centres and plenty more. I don’t think there’s a better REIT for sector diversification on the ASX.

This business can provide pleasing security within its portfolio because it’s looking to maintain a portfolio of investments that have long rental contracts. In other words, the REIT has a long weighted average lease expiry (WALE). The WALE currently stands at around nine years.

That high-quality rental income is steadily growing, with the income benefiting from fixed annual indexation or rental increases linked to inflation. That’s a pleasing, natural tailwind for the business.

In FY26, the ASX share has guided that it expects to increase its annual distribution per unit by 2% to 25.5 cents. Any growth in the current environment is good, in my view. That forward distribution translates into a dividend yield of 7.2%, at the time of writing.  

WCM Global Growth Ltd (ASX: WQG)

The other ASX share I want to highlight is a listed investment company (LIC) that is one of the most effective choices, in my view, for both passive income and some capital growth.

Excitingly, WCM pulls its ideas from across the global share market, which gives the LIC great diversification and helps it unlock strong returns. The global economy has a much larger addressable market than Australia and New Zealand, so it’s pleasing when a business is targeting international growth.

Many of the businesses inside the WCM Global Growth portfolio have multinational/global ambitions, giving them a longer growth runway and the potential to earn stronger returns than ASX blue-chip shares.

The ASX share aims to find businesses with strengthening competitive advantages, which is supported by a corporate culture that can help those businesses grow their profitability and market position.

WCM Global Growth now pays a dividend every quarter to shareholders and that payment has been increasing each quarter. Its annual dividend has increased each year since 2019.

The next four guided quarterly dividends are expected to come to a total of 9.3 cents per share, which translates into a grossed-up dividend yield of 7.5%, including franking credits.

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Motley Fool contributor Tristan Harrison has positions in Wcm Global Growth. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.