The ASX dividend share space is full of a lot of interesting potential ideas for passive income, including ones with huge dividend yields.

But, the higher the dividend yield goes, the more careful I am about the choices.

Some dividend yields are just a mirage. A dividend cut may be coming because profit generation has been affected.

So, I’m going to talk about two ASX dividend shares that have incredibly high yields but have also displayed reliability.

Hearts and Minds Investments Ltd (ASX: HM1)

Listed investment companies (LICs) can be a great option for dividends because they can turn investment returns from a portfolio into dividend payments to shareholders.

Hearts and Minds is a very different type of LIC to most others. All of the investment professionals involved don’t charge any management fees.

Each year, Hearts and Minds donates to Australian medical organisations to help fund research, which is a great initiative.

In terms of the investments, there are two ways that picks are chosen for the portfolio. First, a majority of the portfolio is chosen by a permanent group of fund managers.

Second, at an annual investment conference, the stock picks are chosen by a number of investment professionals for a minority of the portfolio.

Overall, it’s a portfolio of best ideas from all of these experts. The portfolio is largely an international stock portfolio, which gives Australians a pleasing level of diversification.

In terms of the dividend, the last two payments came to 19.5 cents per share. That’s a grossed-up dividend yield of 9.4%, including franking credits, at the time of writing.

It has steadily increased its payout each year since 2023, which is pleasing amid rising interest rates.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is an intriguing ASX dividend share because of its position as an Australian and New Zealand specialty retailer of male and female personal grooming products. It wants to be the market leader in all things related to hair removal.

There are currently 127 Shaver Shop stores across Australia and New Zealand, selling a wide range of quality brands. It has a number of exclusive products with suppliers.

Its longer-term growth over the last several years has enabled the business to pay a steady and regularly growing dividend. Since it started paying a dividend in 2017, it has grown its payout most years (with no cuts), though that’s not guaranteed to continue forever.

In FY26, it maintained its annual dividend per share of 10.3 cents following a 3% rise of sales to $225.1 million and operating profit (EBIT) growth of 1.3% to $22.8 million.

At the time of writing, the FY26 payout translates into a grossed-up dividend yield of 11.4% (including franking credits), which is a huge yield, but the company trades on a relatively low price-earnings (P/E) ratio.

If it can expand its store network, sell more exclusive brand products, grow its private brand, and sell more online, the ASX dividend share has a very promising future.

The post 2 ASX shares with dividend yields above 9% appeared first on The Motley Fool Australia.

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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.

Owning Fortescue Ltd (ASX: FMG) shares typically means receiving a solid level of dividend income each year, so we’re going to look at what it could mean for investors in 2027.

Fortescue is one of the world’s largest iron ore miners and its dividend yield can be high because of the company’s low price/earnings ratio (P/E) ratio and a relatively high dividend payout ratio.

The ASX mining share recently gave an update that sent the Fortescue share price lower, so let’s remind ourselves of what was said.

Difficult start to FY27

In an ASX announcement, Fortescue said that in the three months to September 2026, total iron ore shipments were 46.8 million tonnes (mt), which was 6% lower year-over-year (despite including 2.5mt from Iron Bridge).

The realised/sold price for its hematite (iron ore) was US$80 per dry metric tonne (dmt), lower than US$90.70 it experienced during FY26.

Fortescue noted that iron ore shipments were affected by maintenance during the quarter. Iron ore sales of 42.9mt were below shipments because of the impact of ongoing negotiations with China Mineral Resources Group (CMRG), a key Chinese buyer of iron ore.

So, there’s potential for FY27 to be stronger or weaker, depending on what happens with the iron ore price and negotiations with CMRG.

FY27 payout prediction

Analysts currently project that Fortescue’s earnings per share (EPS) could fall to $1.34 in the 2027 financial year, according to Commsec, which could then see a drop in the dividend per share.

The projection on Commsec currently suggests that owners of Fortescue shares could receive an annual dividend per share of 85.8 cents.

At the time of writing, the forecast payout translates into a dividend yield of 5.6% excluding franking credits and 8% including franking credits.

For most businesses, that’d be a solid yield. However, it does represent a large decline of the dividend per share. It’s only due to the large decline of the Fortescue share price that the yield is still attractive.

What it would take for $1,000 of passive income in 2027

If the analyst predictions do become reality, then we can work out how many Fortescue shares they’d need to own to make $1,000 of passive dividend income from the current financial year.

Excluding franking credits, an investor would need to own 1,166 Fortescue shares to generate $1,000 of passive income.

Including franking credits, an Australian would only need to own 816 Fortescue shares for the desired dividends.

But, with the current uncertainty hanging over Fortescue, I could understand investors wanting to look at other ASX shares for returns.

The post How much must I invest in Fortescue shares to earn a $1,000 passive income in 2027? 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 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.

It has been a tough period for PLS Group Ltd (ASX: PLS) shares.

A heavy decline on Tuesday in response to falling Chinese lithium prices means the mining giant’s shares are down almost 30% year to date.

While that is disappointing and weakening lithium prices are a concern, Bell Potter believes the selling has gone too far.

What is the broker saying?

Bell Potter notes that lithium prices have been weaker than it was expecting. As a result, it has trimmed its estimates for the medium term to reflect this. It said:

We have marked-to-market our lithium price estimates for the recent quarter and downgraded our near-term outlook, in line with recent price weakness. Spodumene Concentrate 6% Li2O CFR China (Fastmarkets) averaged US$2,107/t in the September 2026 quarter (BP est. US$2,500/t); spot prices are US$1,562/t. We now factor in SC6 prices of US$1,777/t in FY27 (-21% on prior estimate of US$2,250/t) and US$1,750/t in FY28 (-7% on prior estimate of US$1,875/t). 

Our estimates of US$1,625/t in FY29 and US$1,500/t long term are unchanged. Lower lithium prices have corresponded with weaker market sentiment in China and commodity agencies pointing to a modest market surplus in 2027. China’s SC imports reached a record in August 2026 (spglobal.com) with a surge in volume from Africa; lithium carbonate imports have also rebounded. However, articles suggest that China’s downstream inventories remain lean and that underlying demand fundamentals are strong.

The good news is that despite this weakness, the broker believes PLS will continue to deliver strong profit growth. It is forecasting a net profit of $698 million in FY 2027 (up from $526 million), then an increase to $784 million in FY 2028.

PLS shares upgraded

In response to the above, Bell Potter has upgraded PLS shares to a buy rating with a reduced price target of $4.40 (from $5.20).

Based on its current share price of $3.08, this implies potential upside of approximately 43% for investors over the next 12 months.

No dividends are forecast over the near term by the broker.

Commenting on the upgrade, Bell Potter said:

We upgrade to a Buy recommendation on recent share price weakness. At current lithium market prices, PLS will generate substantial earnings and cash flow with the restart of the 200ktpa Ngungaju processing plant. P2000 and Colina development studies are being progressed, providing organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals.

The post Down 30%: Why a top broker just upgraded PLS shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.