Retirees may be on the hunt for ASX dividend shares that can provide a solid base of passive income. I think Rural Funds Group (ASX: RFF) is one of the top options in retirement.

Rural Funds is a real estate investment trust (REIT) that owns farmland across Australia, in different states and climate conditions. It also has a large holding of water entitlements for its tenants to use.

For a few different reasons, I think the business fits what retiree investors may be looking for.

Stable payout

Retirees may be looking for businesses that can provide resilient payouts through all economic conditions. If I’m relying on investment income, I want to know it can continue flowing even if there’s a downturn.

Of course, there is no absolute guarantee that every business will pay dividends.

Rural Funds has a number of high-quality tenants that are either high-quality international, listed or national entities. That helps ensure it continues to generate good rental profits.

Additionally, the ASX dividend share has a weighted average lease expiry (WALE) of more than a decade, giving investors significant income security and visibility with how long tenants are signed up.

The business increased its distribution each year between 2014 to 2022 and has maintained it since then despite the headwinds of higher interest rates. While I’d prefer growth, it’s still a good sign that the payout hasn’t been reduced despite the higher interest costs.

Plus, Rural Funds’ rental contracts have indexation built into the leases, giving the business organic rental growth potential and a tailwind to increase its payout for retirees (and other investors) in the future.

Good dividend yield

The business has regularly paid an annual distribution per unit of 11.73 cents over the last few financial years, and I wouldn’t be surprised if the ASX dividend share pays the same passive income again in FY27.

If Rural Funds does pay that level of distribution again in the 2027 financial year, it would translate into a distribution yield of 5.8%. In my view, that’s extremely competitive with any term deposit rate out there that’s available to Australians right now.

Compelling farm ownership at a discount

I like the diversification that Rural Funds can provide for retiree investors, with a focus on residential property, banks, and miners. Farmland is an integral part of the Australian economy, and this investment gives us exposure to cattle, vineyards, almonds, macadamias and cropping.

I believe the business is significantly undervalued based on its adjusted net asset value (NAV). It’s ‘adjusted’ to include the market value of the water entitlements.

At 31 December 2025, it had an adjusted NAV of $3.10. That means it’s trading at a discount of 35%, at the time of writing. There are very few REITs or ASX dividend shares that are trading as cheaply as that.

I think it’s a great business to pick up right now, though it’s not the only ASX dividend share I’d buy today.

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

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Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. 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 Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX blue-chip share space is a great place to look for ideas that can deliver strong passive income with good dividend yields.

Mature Australian businesses have usually built a strong reputation for generating profit, they have a big accounting profit reserve and a history of paying resilient dividends to investors.

When I look at ASX shares with market capitalisations of more than $6 billion, the two businesses below are ones that stick out as good providers of passive income.

Argo Investments Ltd (ASX: ARG)

Argo is a listed investment company (LIC) that provides investors with exposure to a portfolio of ASX blue-chip shares. LICs can give Aussies both diversification and a good dividend yield.

The biggest positions in the portfolio includes BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), Rio Tinto Ltd (ASX: RIO), Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ) and Telstra Group Ltd (ASX: TLS).

As you can see, Argo gives investors a significant level of allocation to ASX blue-chip shares.

It has a pleasingly low cost, with a management expense ratio of just 0.14%, which is one of the cheapest in the LIC sector. Plenty of exchange-traded funds (ETFs) have a higher cost than that.

Since the GFC, the ASX blue-chip share has reduced the annual dividend a couple of times. In most other years, the annual dividend has been hiked. Its current grossed-up dividend yield is 6%, including franking credits.

It’s currently trading at a mid-teen double-digit discount to its net tangible assets (NTA).

Coles Group Ltd (ASX: COL)

Coles is another quality ASX blue-chip share Aussies can buy.

As Australia’s second-largest supermarket business, it has a strong market position to continue generating a pleasing level of passive income for shareholders.

Coles has increased its annual dividend each year since 2019, which is a pleasing level of dividend consistency compared to many other large businesses. The steady growth of revenue and net profit has allowed the business to be a consistent dividend provider for investors.

At the time of writing, Coles’ last two half-year dividends come to 73 cents per share. That’s a grossed-up dividend yield of 4.5%, including franking credits.

The business is steadily building its market position thanks to an expanding store network, rising e-commerce sales and improving profit margins.

In my view, Coles has a promising long-term future – it’s a very important business for the Australian economy and could expand into pet retail and vets if the possible Greencross transaction goes ahead.

Overall, there’s a lot to like about these ASX blue-chip shares, though they’re not the only great businesses to consider.

The post 2 ASX blue-chip shares offering big dividend yields 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 positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the most significant and least publicised changes to hit the superannuation system this week directly affects new parents.

From 1 July 2026, eligible parents who receive government-funded Parental Leave Pay will also receive a 12% superannuation contribution on those payments. This will be paid directly by the ATO into their nominated super fund.

The scheme has expanded to 130 days, or 26 weeks, of paid parental leave, with the super contribution applying across the full period.

Why this superannuation change matters

Australia has one of the widest gender super gaps in the developed world.

Women retire with approximately 25% less superannuation than men, a gap driven in large part by career breaks taken for caring responsibilities.

Every year spent on parental leave without super contributions is a year of compounding returns lost. The new measure directly addresses that dynamic.

The Parental Leave Pay is based on the national minimum wage, now $26.44 per hour, which means a parent taking the full 26 weeks receives approximately $26,218 in total parental leave pay across the period.

At a 12% super guarantee rate, that translates to approximately $3,146 in super contributions for a parent taking the full scheme entitlement.

Over a working life, compounded at the historical ASX 200 return of approximately 8.5% per annum, a single year’s parental leave super contribution of $3,146 grows to approximately $33,000 by retirement for a 30-year-old today.

That is not a trivial amount from what looks like a small policy tweak.

How to make the most of it

The super contribution arrives as a lump sum after the end of the financial year. This is paid by the ATO directly to the parent’s nominated fund.

Parents who are on their employer’s own parental leave scheme, rather than the government scheme, should check whether their employer separately pays super during that period, since employer policies vary.

For parents with a self-managed superannuation fund or a choice fund, ensuring the ATO has the correct fund details is the most important practical step.

The investment choice inside the fund also matters enormously over a 30-year compounding period.

Two ASX shares that benefit

More superannuation flowing into the system more frequently means more assets landing on the wealth management platforms that administer that money.

Both Hub24 Ltd (ASX: HUB) and Netwealth Group Ltd (ASX: NWL) are direct beneficiaries of this dynamic.

Hub24 delivered record half-year net inflows of $10.7 billion in 1H FY26 and upgraded its FY27 platform funds under administration target to $160 billion to $170 billion. This comes as Australia’s growing super pool continues to flow toward technology-enabled platforms.

Netwealth reached a record $125.6 billion in platform funds under administration in 1H FY26. Platform revenue climbed 25% on the strength of consistent inflows and sticky adviser relationships.

As payday super, expanded parental leave contributions, and the broader super pool growth combine into FY27, both platforms are positioned to capture a growing share of that expanding pool.

Foolish takeaway for your superannuation

The new parental leave super entitlement is worth approximately $3,146 for parents taking the full 26 weeks of government parental leave.

It is automatic, it flows directly into the nominated super fund, and it directly narrows a gender super gap that has been decades in the making.

For investors, Hub24 and Netwealth are two of the clearest ASX beneficiaries, as Australia’s superannuation pool grows not just in size but in the frequency and breadth of contributions flowing into it.

For specific information on how the changes might impact you, it might be worth consulting a financial advisor.

The post New parents are now earning superannuation on parental leave. Here’s how to make the most of it appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.