The ASX share Charter Hall Long WALE REIT (ASX: CLW) looks to me like a top pick for retirees and anyone wanting passive income.

Commercial property typically offers a much higher rental yield than residential property, allowing it to provide investors with attractive passive income.

Real estate investment trusts (REITs) are the structure that allows investors to invest in commercial property on the ASX.

For me, Charter Hall Long WALE REIT is one of the leading picks for retirees for a number of reasons.

Diversification

The business can offer investors significant diversification because it’s invested across a number of key defensive tenant industries that are supposedly resilient to economic shocks.

It’s invested in areas that have tenants across government areas (like Geosciences Australia), hotels, grocery and distribution, telecommunications exchanges, data centres, service stations, banking and professional services, food manufacturing, healthcare, Bunnings properties, and more.

To be able to make one investment and get exposure to all of those sectors sounds appealing to me.

In terms of the quality of tenants, the organisations that account for at least 5% of revenue include government entities, Endeavour Group Ltd (ASX: EDV), Telstra Group Ltd (ASX: TLS), BP, Coles Group Ltd (ASX: COL) and Metcash Ltd (ASX: MTS).

The tenants are signed on for long-term contracts, giving investors long-term income security. Charter Hall Long WALE REIT currently has a weighted average lease expiry (WALE) of around nine years, which is a comforting length of time for retirees.

Ongoing rental growth

A REIT is not a term deposit; it’s capable of delivering growth for investors.

The business has rental growth built into its contracts, which is a good tailwind for both rising property values and increasing the distribution over time.

Some of the properties have rental income growth linked to inflation, while the rest have fixed annual increases. This combination helped the business achieve average annual net property income growth of 3.1% in FY26.

I think rising rental income is a key factor that helped the business report a 2.6% year-over-year improvement in net tangible assets (NTA) during FY26.

Strong passive income yield

The business has a very generous distribution payout ratio of 100% of its rental earnings, giving investors a large yield.

It’s also trading at a large discount to its underlying value – the NTA was $4.71 as of 30 June 2026. That means it’s trading at a 28% discount, which is enormous for a high-quality REIT, in my view.

The ASX share expects to pay an annual distribution of 25.5 cents per security in FY27, which translates into a distribution yield of 7.5%. I think that’s very appealing, and I’d happily buy some units if I were a retiree.

The post Why this ASX share is a retiree’s dream for FY27 appeared first on The Motley Fool Australia.

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• How much is needed in superannuation to target a $70,000 annual passive income?
• 2 ASX blue-chip shares offering big dividend yields

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 recommended BP. 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.

With proposed changes to Australian tax laws on negative gearing and capital gains, ASX shares with large dividend yields could be much more appealing to investors.

I think there’s something very satisfying about seeing cash paid into my bank account regularly by ASX dividend shares. If we choose the right investments, Aussies can enjoy larger dividend payments over time.

Huge dividend yields of more than 10% aren’t seen as safe payouts. There’s normally a reason the yield is that high – earnings may soon fall and/or the dividend payout ratio is too high.

But there are a couple of names that are providing investors with dividend yields of more than 10%, and those payouts may well be sustainable going forward. I’m a fan of the two names below.

Shaver Shop Group Ltd (ASX: SSG)

This ASX share describes itself as an Australian and New Zealand specialty retailer of male and female personal grooming products, and aspires to be the market leader in ‘all things related to hair removal’.

It currently has 127 stores across Australia and New Zealand, selling a wide range of quality products at competitive prices. Thanks to its position in the market, it has managed to negotiate exclusive products with certain suppliers.

The main product types it sells are electric shavers, clippers, trimmers, and wet shave items. It also sells other items, including oral care, hair care, massage, air treatment, and beauty categories.

The business trades on a low P/E ratio and has a generous dividend payout ratio, leading to an impressive dividend yield. It generated 11.3 cents of earnings per share (EPS) in FY26 and paid an annual dividend per share of 10.3 cents.

Its FY26 payout translates into a grossed-up dividend yield of 11.4%, which is an excellent yield considering the payout has grown or been maintained every year since 2017.

I think the move to grow its own brand, called Transform-U, is smart because it fills gaps in the company’s overall product offering, provides compelling customer value, and can lead to a stronger gross profit margin. Transform-U represented 8% of total sales in FY26, up from 3.4% in FY25.

Hearts and Minds Investments Ltd (ASX: HM1)

The other ASX share I want to highlight with a huge dividend yield is Hearts and Minds, a listed investment company (LIC) with a philanthropic cause.

Instead of paying management fees to fund managers, the LIC donates a small portion of its net assets each year to medical research in Australia. I think that’s a great initiative.

The portfolio is decided in two different ways. A majority of the portfolio is invested by a group of core portfolio managers on an ongoing basis.

The rest of the portfolio’s picks are decided at an annual investment conference. Investment professionals pitch their best pick, and each of those is also part of the portfolio.

Most of the portfolio is normally invested in global shares, which can provide Aussies with useful diversification.

The LIC has grown its half-yearly dividend by 0.5 cents every six months in recent history. Assuming it continues that record, the next two dividends to be paid will amount to 20.5 cents per share, which is a grossed-up dividend yield of 10.4%, including franking credits.

The post 2 ASX shares with dividend yields above 10% appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $6,500 monthly passive income?
• How much superannuation is needed to target $5,500 per month in passive income?
• How much is needed in superannuation to target a $70,000 annual passive income?
• How much is needed in superannuation to target a $60,000 annual passive income?
• 2 ASX shares with dividend yields above 9.5%

Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments. 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 Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Reliance Worldwide Corporation Ltd (ASX: RWC) share price is in focus today after the company announced it has entered into a scheme implementation deed with Brookfield, under which Brookfield will acquire 100% of Reliance Worldside shares for US$3.38 per share. This cash offer represents a 43% premium to RWC’s six-month VWAP and values the company at an enterprise value of approximately US$2.9 billion, or A$4.75 per share.

What did Reliance Worldwide report?

• Scheme Implementation Deed signed for Brookfield to acquire 100% of RWC shares via a scheme of arrangement
• Offer price: US$3.38 cash per share (~A$4.75 based on exchange rates)
• Total enterprise value: approximately US$2.9 billion
• Premiums: ~43% to six-month VWAP, ~32.7% to three-month VWAP, and ~31.5% to undisturbed price
• Implied FY26 EV/EBITDA multiple: ~12.1x (post-AASB16)
• Shareholders can elect to receive payment in AUD or USD at implementation

What else do investors need to know?

The agreement includes a “Go Shop” provision, allowing Reliance Worldwide’s board to actively seek out alternative bids until 15 October 2026. This means shareholders have the opportunity to benefit if a superior proposal emerges. After the Go Shop period, standard exclusivity, deal protections, and matching rights apply, including a US$25.3 million break fee and a reverse break fee on the same terms.

Completion of the transaction is subject to shareholder and regulatory approvals, including the Foreign Investment Review Board, ACCC, and equivalent authorities in the US, Germany and Ukraine. An independent expert will report on whether the scheme is in shareholders’ best interests.

What did Reliance Worldwide management say?

Reliance Worldwide Chair Russell Chenu said:

The Board is unanimous in its view that this Transaction is in the best interests of RWC shareholders. The Board has carefully assessed the proposal on a fundamental valuation basis, considering RWC’s strategic position, long-term growth opportunities and cash generation. The Board also considered the execution risk to deliver future growth, as well as the broader macroeconomic and geopolitical environment, against the certainty of value delivered by the Cash Consideration and unanimously recommends that RWC shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to an Independent Expert concluding that the Scheme is in the best interests of shareholders. In addition, the ‘Go Shop’ process provides us with the opportunity to explore broader buyer interest in RWC which will allow shareholders to be fully informed when making their decision on the Transaction

What’s next for Reliance Worldwide?

The next step for Reliance Worldwide shareholders will be receipt of a Scheme Booklet, expected in November 2026, with full details of the proposal, including the independent expert’s report. A Scheme Meeting, where shareholders will vote on the deal, is tentatively scheduled for later in 2026. If the deal is approved and all conditions are met, implementation is targeted for Q1 2027. If completion is delayed past March 2027, a “ticking fee” will accrue to shareholders.

Shareholders are encouraged to take no action until formal materials are received. The board unanimously recommends the proposal, subject to no superior bid and a positive expert report.

Reliance Worldwide share price snapshot

Over the past 12 months, Reliance Worldwide shares have risen 3%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post Brookfield moves to acquire Reliance Worldwide Corporation at a 43% premium appeared first on The Motley Fool Australia.

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• Reliance Worldwide FY26 profit falls but receives Brookfield takeover offer

Motley Fool contributor Laura Stewart 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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.