The ASX dividend stock Universal Store Holdings Ltd (ASX: UNI) has delivered reliable dividends to shareholders this decade. I think it could be a top investment for passive income in the coming years and it’s enacting business plans to deliver it.

Universal Store owns a portfolio of premium youth fashion brands across retail and wholesale businesses. Its core businesses are Universal Store and Perfect Stranger. It also has CTC (which operates the THRILLS and Worship brands). The company has more than 120 stores across Australia.

Compelling dividend record

The business started paying a dividend in FY21 and it has increased its payout every year since then, including in FY26.

In the recent 2026 financial year report, the Universal Store board of directors hiked its annual dividend per share by 11.7% to 43 cents. At the time of writing, Universal Store now has a dividend yield of 5.2% excluding franking credits and 7.4% including franking credits.

But, it’s more than just the dividend that makes this business attractive.

Strong business growth

In FY26, overall sales grew 12.9% to $376.1 million, with Universal Store sales growing 11.5% (amid 8.1% like-for-like (LFL) sales growth). Perfect Stranger sales soared 40.8% to $35.9 million, with 13% LFL sales growth.

Operating leverage was clear in the FY26 result. The company achieved a 140 basis point increase in the gross profit margin to 62.5%, operating profit (EBIT) climbed 17.2% to $64 million, and underlying net profit grew 16.3% to $40.5 million.

Dividend growth is not guaranteed, of course, but Universal Store has delivered regular dividend growth, including during the high-inflation period three years ago and in FY26 amid the Middle East fallout.

The outlook looks good for further dividend growth because of the company’s plans and the strong start to trading in FY27.

Management intends to open between 16 and 20 stores across the group in FY27, with nine to ten new Universal Stores, between six and eight Perfect Stranger stores and one or two new THRILLS stores.

It also plans to reopen a temporarily closed store, refurbish four or five stores and relocate three stores. The company said it continues to be prudent in ensuring the long-term profitability of new stores and lease renewals.

FY27 has started strongly with 9.1% overall direct-to-consumer sales growth.

Universal Store sales are up 5.5% (with 2.9% LFL sales growth), Perfect Stranger sales are up 45.8% (with 17.6% LFL sales growth) and CTC direct-to-consumer sales are up 10.1% (with 3.8% LFL sales growth).

Time will tell whether the business can continue this strong level of sales growth over the rest of FY27 amid the challenging retail conditions.

$1,000 investment in the ASX dividend stock

At the time of writing, if an investor invested $1,000 into Universal Store shares, they’d be able to buy 120 shares with a little bit of money left.

Based on the FY26 payout – but I expect growth in FY27 – an investor would receive $51.60 of cash and approximately $22.11 of franking credits.

It’s not as cheap as it was earlier this year, but this ASX dividend stock continues to impress me, and I’d happily buy some shares today.

The post $1,000 buys 120 shares in an incredibly reliable ASX dividend stock 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 recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I told you there was a simple ASX exchange-traded fund (ETF) out there, one that charges a paltry fee and has returned 15% per annum for the past decade, would you rush out to buy it without a second thought? I wouldn’t blame anyone who was tempted.

That’s exactly what the iShares S&P 500 ETF (ASX: IVV) seems to be offering investors right now.

This ETF and index fund is indeed a simple one. It holds the largest 500 companies listed on the American markets, weighted by market capitalisation. In this way, it can be thought of as an American equivalent to the uber-popular Vanguard Australian Shares Index ETF (ASX: VAS).

Buying the world’s best stocks with this ASX ETF

But instead of investing in the likes of Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS), IVV is far more impressive in terms of scope and scale. The ASX is home to some fine companies. But very few are heavyweights beyond our shores. Not so with IVV. This ASX ETF literally contains dozens, if not hundreds, of companies that sell goods and services right around the world.

These companies include many names you might be familiar with. General Motors, Coca-Cola, Deere & Co, PepsiCo, Walmart, Procter & Gamble, Netflix, Colgate-Palmolive, IBM, Mastercard, Texas Instruments, Costco… the list goes on. And we haven’t even got to this ASX ETE’s heavyweights. Like most US-based index funds, the iShares S&P 500 ETF is dominated by tech stocks. Its top holdings are also the most powerful companies in the world right now. They include NVIDIA, Apple, Amazon, Microsoft, Alphabet, and Tesla.

It’s these companies that investors largely have to thank for IVV’s incredible performance over the past decade. As we mentioned earlier, this ASXE TF has delivered a 15% return every year for the past ten years. Specifically, it is 15.72% per annum over the ten years to 31 July 2026.

That’s real wealth-building stuff. Helped in no small part by IVV’s minuscule management fee of 0.04% per annum. That’s $4 a year for every $10,000 invested.

So is IVV a no-brainer buy?

Given that the US is home to the vast majority of the world’s best companies, I think it is prudent for most ASX investors to have some exposure to US stocks in their portfolios. They are just a cut above what the ASX has to offer, at least in my view. IVV is a great way to get that US exposure. It is a simple, cheap ETF that provides a lot of diversification. What more could one want?

Saying that, I do think investors need to temper their expectations, though. I would be shocked if the iShares S&P 500 ETF kept returning 15% per annum over the coming ten years. Many of its holdings have reached critical mass, and, at multi-trillion-dollar valuations, will find it difficult to keep growing at the rates they have enjoyed in the past.

Saying that, there is plenty of innovation still happening within IVV’s portfolio. Either way, I think this ASX ETF is indeed a no-brainer buy for any ASX investor with a long time horizon.

The post 15% for 10 years: Is this ASX ETF a no-brainer buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Coca-Cola, Costco Wholesale, Mastercard, Microsoft, Netflix, PepsiCo, Procter & Gamble, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Colgate-Palmolive, Costco Wholesale, Deere & Company , International Business Machines, Mastercard, Microsoft, Netflix, Nvidia, Tesla, Texas Instruments, Walmart, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended General Motors. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Mastercard, Microsoft, Netflix, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For many years, income investors have looked to specific sectors to find strong dividend stocks. 

Income investors have long looked to energy, banks and insurance because these industries tend to generate substantial, recurring cash flows that can support attractive dividend payouts. 

Energy companies can benefit from strong cash generation when commodity prices are favourable, while banks and insurers typically return a meaningful share of their earnings to shareholders once capital requirements are met. 

Their established business models, mature markets and history of shareholder distributions have made all three sectors longstanding sources of dividend income.

Right now, there are three dividend stocks from these industries providing strong yields. 

Bendigo and Adelaide Bank Ltd (ASX: BEN)

Bendigo and Adelaide Bank has been making headlines this week after releasing its FY26 results. 

The bank delivered cash earnings of $530.2 million for FY26, up 3.0%, with a fully franked final dividend of 33 cents per share.

This means Bendigo Bank shares are currently trading on a trailing dividend yield of roughly 6%. 

This is outpacing the big four banks, as well as much of the ASX financials sector. 

For prospective investors, the shares are scheduled to trade ex-dividend on 1 September. 

This means you will need to own shares by the end of August to be eligible to receive this payout.

Ampol Ltd (ASX: ALD)

Ampol is the largest, and only Australian-listed, petroleum refiner and distributor in the country, with around 2,000 branded Ampol service stations across all states and territories.

It has also been turning heads this week after delivering a strong first half for 2026, with a 245% jump in RCOP EBIT to $1,392 million. 

Even more exciting for income investors was the announcement that the interim dividend more than quadrupled to 185 cents per share.

This significantly increased new dividend now gives the company a much-improved forward yield of 6%.

Medibank Pvt Ltd (ASX: MPL)

Turning attention to Australia’s largest health insurance provider, MediBank. Last week, the dividend stock announced that its full-year dividend will increase by 6.7% to 19.2 cents per share, fully franked.

While the yield is enticing, the most attractive aspect of this dividend stock may be its consistency. 

It has increased its dividend every financial year (except for FY20) since its listing in FY15.

Based on the current share price, it has a FY26 grossed-up dividend yield of 6%, including franking credits. 

The post 3 great dividend stocks with 6% yields to boost passive income in FY27 appeared first on The Motley Fool Australia.

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• 6%: Bendigo Bank just unveiled its latest dividend
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Motley Fool contributor Aaron Bell 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 Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.