Commonwealth Bank of Australia (ASX: CBA) shares have been a great option for passive income over the years, but I think there are plenty of better ASX dividend share options today.

CBA faces a more difficult operating environment these days following the Federal budget changes.

It’s possible the ASX bank share may not see as much loan demand for the foreseeable future, following changes to negative gearing and capital gains tax (CGT) discounts announced in the most recent Federal Budget.

CBA’s annual dividend per share is only expected to increase by 1% year-over-year in FY27 to $5.15 per share. That translates to a grossed-up dividend yield of 4.4%, including franking credits.

In my view, the following two businesses are better picks for passive income.

Medibank Private Ltd (ASX: MPL)

Medibank is the largest private health insurer in Australia, with its main brands of Medibank and ahm.

Private health insurance is an industry with useful tailwinds, including ageing demographics and a rising population. This helps support Medibank’s policyholder numbers and underlying net profit, which are key drivers of the dividend.

The FY26 half-year result was a great example of its ability to pay attractive and growing dividends.

In HY26, the business revealed that revenue grew 5.5%, segment operating profit grew 5.9%, and group operating profit increased 6%. This helped the business fund a 6.4% increase of the interim dividend per share to 8.3 cents.

The ASX dividend share’s expansion into other areas of healthcare can also help grow and diversify its earnings, giving further support for the dividend. Medibank Health segment profit increased by 28.5%, which includes community and acute healthcare. One recent initiative included increased ownership of Amplar Health Home Hospital.

According to the projection on Commsec, the business is forecast to pay an annual dividend per share of 22 cents in FY27. That translates into a potential grossed-up dividend yield of 6.2%, including franking credits, at the time of writing. That’s a noticeably better yield than what CBA shares offer.  

Dexus Industria REIT (ASX: DXI)

Dexus has a very large exposure to Australia’s real estate market, so why not just invest in a compelling passive income option from the real estate space?

Dexus Industria is a real estate investment trust (REIT) that is invested in high-quality industrial warehouses. Its real estate portfolio is located across major Australian cities, with a goal to provide securityholders with sustainable income and capital growth.

There is strong demand for industrial properties as a result of growing e-commerce usage, data centres and so on. This is helping drive pleasing rental growth for the business. In the first six months of FY26, the ASX dividend share saw like-for-like income growth of 7.4%, with rental escalations, strong re-leasing spreads and higher average occupancy.

The business is paying an annual distribution per security of 16.6 cents in FY26, translating into a distribution yield of 6.8%, which is much stronger than what’s on offer from CBA shares.

The post Forget CBA shares! I’d rather buy these ASX dividend shares 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.

Australian passive income investors are a lucky bunch.

The local share market is home to a large number of ASX shares that reward their shareholders with dividends every year.

So, if I were looking for ASX shares to buy now for passive income, these three would be on my shortlist.

Charter Hall Retail REIT (ASX: CQR)

Charter Hall Retail REIT would be an ASX passive income share I would look at.

The REIT owns convenience-focused retail properties across Australia. These are the types of centres anchored by supermarkets, everyday services, and tenants linked to regular household spending.

Its tenants include Coles Group Ltd (ASX: COL) and Wesfarmers Ltd (ASX: WES).

This gives the portfolio a different feel from large discretionary shopping malls. People may delay buying furniture, electronics, or luxury items when conditions are tough, but I would expect grocery shopping and local errands to continue through most economic cycles.

Rising interest rates remain a key risk. But if rates ease over time, or even just stop pressuring valuations, investor sentiment toward quality property trusts could improve.

The Charter Hall Retail REIT offers an estimated FY 2027 dividend yield of approximately 6.9%.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre Travel Group is a different type of passive income idea.

It is not a traditional defensive ASX dividend share. Its earnings are tied to travel demand, business activity, leisure spending, airfares, and consumer confidence.

Flight Centre has spent the past few years rebuilding after the severe disruption caused by the COVID pandemic. And while trading conditions have been tough due to the conflict in the Middle East and the cost of living crisis, its evolution means the company is well-placed to grow its earnings materially once conditions normalise.

So much so, Flight Centre shares are expected to offer a fully franked 4.2% dividend yield in FY 2027.

Woolworths Group Ltd (ASX: WOW)

Woolworths is the most defensive name on this list.

The supermarket giant gives passive income investors exposure to everyday spending through food, groceries, household essentials, and related retail operations.

It is not a high-yield ASX share, and I would not buy it expecting the biggest dividend on the ASX. The main attraction here is its dependability.

Woolworths has scale, brand recognition, loyalty data, a major store network, and an important position in Australian household budgets. As I mentioned above, even when consumers become more cautious, groceries remain a core expense.

Looking to FY 2027, Woolworths shares are expected to offer a fully franked dividend yield of 2.8%.

The post 3 strong ASX passive income shares I’d buy now appeared first on The Motley Fool Australia.

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• Up 33%, are Woolworths shares still a good buy for passive income?

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Charter Hall Retail REIT. The Motley Fool Australia has recommended Flight Centre Travel Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A buy and hold for life ASX 200 share does not mean investors should buy it and never look at it again.

It means finding a business with quality, a strong market position, and a long-term growth runway to justify patience through different market cycles.

If I were looking for ASX 200 shares that could sit in a portfolio for decades, I would want companies that are difficult to replace, still have ways to grow, and are not relying on one good year to make the investment case work.

Here are three that stand out to me.

Goodman Group (ASX: GMG)

Goodman Group could be one of the ASX 200’s best long-term compounders.

The company owns, develops, and manages industrial property in major global markets.

That includes warehouses, logistics facilities, and data centre infrastructure. These assets may not be as exciting in the same way as a new app or consumer brand, but they are deeply connected to how the modern economy works.

Goods need to be stored and moved, online orders need fulfilment networks, cloud computing and artificial intelligence need physical infrastructure, and businesses want high-quality space close to customers, transport routes, labour pools, and power.

Goodman’s advantage is that prime industrial land in major cities is not easy to recreate. Once a company has the right sites, customer relationships, planning approvals, and development expertise, it can become very hard for others to catch up.

Its shares can look expensive at times, but quality rarely comes at bargain prices for long. Overall, I think Goodman’s mix of property, infrastructure, and development capability makes it a standout ASX 200 share for patient investors.

REA Group Ltd (ASX: REA)

REA Group is another ASX 200 share that could be bought with a very long-term mindset.

The company owns realestate.com.au, which is Australia’s leading property website.

What makes REA strong is its position between buyers, sellers, renters, agents, developers, and advertisers. When Australians want to look for property, many go straight to its platform. When agents want attention for listings, they also need to be where the audience is.

That creates a powerful loop. More listings attract more users and more users make the platform more valuable to agents and advertisers. That kind of network position is difficult to attack unless user behaviour changes dramatically.

Property listings can rise and fall with interest rates, housing sentiment, and market conditions. But Australians remain deeply engaged with property over the long term, whether they are buying, selling, renting, renovating, or simply watching the market.

REA is not immune to downturns, but its brand, audience, and pricing power give it rare durability.

Xero Ltd (ASX: XRO)

Xero is a very different type of ASX 200 share, but also has long-term appeal.

The company provides cloud accounting software for small businesses, accountants, and bookkeepers.

This popular software helps businesses keep track of money, invoices, payroll, bills, payments, and compliance. That may not sound glamorous, but it sits close to the daily financial life of millions of small businesses. 

This makes it increasingly sticky. Once a business, accountant, or bookkeeper builds workflows around a platform, switching can be inconvenient and risky. This supports strong user retention rates and user growth.

Another positive is its investment in artificial intelligence. This could make the platform more valuable to users if it helps automate routine admin, improve bank reconciliation, speed up reporting, and give business owners better financial insights.

As with the others, Xero’s valuation can be demanding. But Xero has a strong product, a large global market, and a role in small business that could become more important over the next decade.

The post 3 ASX 200 shares I’d buy and hold for life appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group, REA Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.