This period of time seems to have heightened uncertainty, with plenty of disruption with energy prices, wider inflation, technology changes, and bond yields. I’m also seeing elevated dividend yields on offer from high-quality ASX dividend shares that pay passive income.

I don’t expect interest rates to stay this high forever, so I believe opportunistic investors can buy stocks at a discount, with a high dividend yield.

With that in mind, I’m going to highlight two ideas that look like unmissable buys right now for investors who want passive income.

Centuria Industrial REIT (ASX: CIP)

I believe the real estate investment trust (REIT) sector is significantly undervalued, considering the consistent rental income it generates and the importance (and scarcity) of the land it owns.

Industrial properties are in high demand in metropolitan locations because of both a shortage of facilities and tailwinds from multiple demand drivers. For example, e-commerce adoption, data centres, and refrigerated space (for food and medicine) are all increasing the value of industrial real estate over time.

During FY26, the business reported 5.2% like-for-like net operating income (NOI) growth. That was partly boosted by 30% positive re-leasing spreads, meaning that new rental contracts are generating 30% more rental income than the old contract.

According to the ASX dividend share, its real estate portfolio is still on average 17% ‘under-rented’, so its rent could continue to grow strongly over the next several years as leases come up for renewal.

It has guided that it will grow its distribution by 3% in FY27 to 17.3 cents, which now represents a distribution yield of 6.1%, which is an impressive starting point.

In my view, it’s very cheap. It reported net tangible assets (NTA) of $4.01 at 30 June 2026. It’s currently trading at a discount of 30% to that figure.

MFF Capital Investments Ltd (ASX: MFF)

The other ASX dividend share I want to highlight is the listed investment company (LIC) MFF.

I think it’s great to be able to invest in one name and get exposure to a diversified portfolio. MFF owns a portfolio and aims to invest in competitively advantaged global businesses with strong outlooks.

Some of the businesses currently in the portfolio include Mastercard, Alphabet (Google), Visa, Bank of America, Amazon, and Microsoft.

By investing in these great companies, MFF is unlocking investment returns which it then uses some of to pay a growing dividend. The retained profits can then be used for further compounding.

I think MFF will grow its FY27 dividend by 19% to 25 cents per share. That translates into a potential forward grossed-up dividend yield of 6.6%, including franking credits, at the time of writing. It has hiked its regular annual dividend every year since 2018, and the payout continues to grow.

The post 2 great ASX dividend share buys for passive income in October appeared first on The Motley Fool Australia.

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Bank of America is an advertising partner of Motley Fool Money. Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Microsoft, and Visa. The Motley Fool Australia has positions in and has recommended Mff Capital Investments. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Microsoft, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Inflation is back in focus on Wednesday after the latest Consumer Price Index (CPI) figures were released.

The Australian Bureau of Statistics (ABS) published its August inflation report this morning, giving investors plenty to digest.

The release comes just one day after the Reserve Bank of Australia (RBA) announced its latest interest rate decision.

With inflation still a key concern for the central bank, today’s numbers could play a part in where interest rates go next.

So, what did today’s numbers reveal?

Inflation climbs back to 4%

The latest figures showed headline inflation rose 4% over the 12 months to August, up from 3.5% in July.

Consumer prices also increased 0.4% during August, although that climbed to 0.7% on a seasonally adjusted basis.

Transport prices were a big part of the increase, rising 4.2% during the month and 5.6% over the past year.

Much of that came from automotive fuel prices, which jumped 14.8% in August and were 13.5% higher than a year ago.

Housing costs also remained high, rising 5.7% over the past 12 months, while education prices increased 4.7% and health costs climbed 3.9%.

Meanwhile, the underlying inflation figures were more stable.

Trimmed mean inflation, which removes some of the more volatile price movements, remained unchanged at 3.6% annually.

It was up just 0.2% during August.

Are more interest rate hikes coming?

Today’s inflation figures could give the RBA another reason to keep interest rates higher.

The central bank lifted the cash rate by 25 basis points to 4.60% yesterday, marking its fourth increase this year.

In its statement, the RBA said inflation remained too high and pointed to several risks that could keep prices elevated.

That included higher energy prices, continued capacity pressures in the economy, and businesses passing higher costs onto customers.

Today’s figures show some of those pressures are still hanging around, particularly with fuel prices jumping during August.

However, the unchanged trimmed mean figure of 3.6% suggests underlying inflation hasn’t moved higher.

The RBA has already made it clear that it is prepared to lift rates again if needed.

Foolish takeaway

From here, the next few inflation reports will be important.

Headline inflation is back at 4%, while underlying inflation remains above the RBA’s 2% to 3% target range.

For me, that keeps another interest rate hike firmly on the table.

The RBA has already shown this year that it is prepared to lift rates if inflation remains too high.

If inflation stays around these levels, borrowers could be facing another interest rate hike over the coming months.

The post Inflation jumps back to 4%. Are more interest rate hikes coming? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.

Telstra Group Ltd (ASX: TLS) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) telco closed yesterday trading for $4.77. In late morning trade on Wednesday, shares are changing hands for $4.80 apiece, up 0.7%.

For some context, the ASX 200 is up 0.1% at this same time.

Taking a step back, Telstra shares have also modestly outperformed the benchmark index over the past year, with the ASX 200 down 1.5% in 12 months while Telstra stock has slipped a lesser 0.5%.

And we shouldn’t discount the passive income Telstra stockholders receive.

Over the last 12 months, Telstra has paid out two dividends, both franked at 90%, totalling 21 cents a share. The ASX 200 telco currently trades on a 4.4% trailing dividend yield.

Which brings us back to our headline question.

With the company’s full-year FY 2026 profits climbing to $2.4 billion, should you buy shares today?

Telstra shares: Buy, hold, or sell?

Red Leaf Securities’ John Athanasiou recently ran his slide rule over the ASX 200 telco (courtesy of The Bull).

“Telstra provides relatively defensive earnings and reliable cash flow during what has been a volatile period for equity markets,” he said.

Commenting on the company’s growth in FY 2026, Athanasiou noted:

Reported net profit after tax of $2.4 billion in full year 2026 was up 2.7 per cent on the prior corresponding period. Reported earnings per share of 19.9 cents were up 5.3 per cent. The company announced a further on-market share buyback of up to $1 billion in full year 2027 when releasing its full year results in August.

The mobile division remains the key earnings driver, while infrastructure assets add stability.

Connecting the dots, Athanasiou issued a hold recommendation on Telstra shares.

“However, expectations are already reflected in the share price, and recent network service concerns create reputational risk,” he said. “Hold for income rather than substantial near term capital growth.”

What’s happening with the new $1 billion share buyback?

Telstra released its FY 2026 results on 13 August.

After completing the previous $1.25 billion on-market share buyback in June, the company announced a new buyback of up to $1 billion on the day.

Commenting on the share buyback, Telstra CEO Vicki Brady said:

Buy-backs allow us to lower our cost of capital and manage our sources of funding more efficiently. This approach also supports earnings and dividend per share growth and, together with increased dividends, demonstrates our confidence in our financial strength and outlook.

Despite that news, Telstra shares closed down 3.2% on the day of the results release.

The post With $2.4 billion in FY26 profits, are Telstra shares a good buy today? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Bernd Struben 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 Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.