I believe the ASX share market is the best place to find passive income opportunities due to the large dividend yields. ASX dividend shares are a great place to hunt for ideas.

When you combine a generous dividend payout ratio with franking credits, you can end up with an impressive dividend yield.

I’m going to highlight two listed investment companies (LICs) in this article, both of which offer impressive dividend yields.

LICs enable investors to invest in a portfolio of shares in a single investment. The structure allows the LIC to turn long-term investment returns into a steady (and rising) payout.

I’m going to talk about two of my favourites.

PM Capital Global Opportunities Fund Ltd (ASX: PGF)

This LIC targets global shares to generate impressive returns. Its investment focus can change over the years, but currently some of the themes it has invested in include European banks, industrial metals, healthcare, industrials, USA banks, consumer and staples, leisure and entertainment, and housing in Ireland and Spain.

It currently has 40 positions, which I think is ample diversification for a professionally-run portfolio.

Past performance is not a guarantee of future performance, but its portfolio has returned an average of 16.8% per year since December 2013. That level of return has allowed this ASX dividend share to deliver share price growth, a rising dividend and a good dividend yield.

Over the past year, the PM Capital Global Opportunities Fund share price has risen by well over 100%. Its annual dividend per share has been hiked every year over the past decade aside from FY23 when it maintained its payout. That’s an impressive record of reliability.

The business intends to hike its annual payout in FY27 by 10% to 16 cents per share. That translates into a grossed-up dividend yield of 6.8%, including franking credits, at the time of writing. I expect the future payouts will be even bigger.

WAM Leaders Ltd (ASX: WLE)

The other ASX dividend share I want to highlight is WAM Leaders, a LIC run by Wilson Asset Management (WAM) that targets large, quality ASX shares.

By being active with its holdings, rather than just passively holding the largest stocks, WAM Leaders has managed to deliver an average return per year of 12.1% since its inception in May 2016, outperforming the ASX share market by an average of close to 3% per year.

Currently, some of its ‘overweight’ investments are focused around real estate businesses and major property developers.

That investment style, as well as having a good understanding of macroeconomic conditions, has allowed WAM Leaders to hike its annual dividend per share every year since FY17.

Its latest annual dividend per share was 9.6 cents in FY26. That equates to a grossed-up dividend yield of 10.3%, including franking credits, at the time of writing.

The post Get paid huge amounts of cash to own 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.

Replacing a salary with ASX dividend shares is the goal that drives most income investing.

A $90,000 income is a realistic target for many Australians.

That level sits just below average full-time earnings, which reached $2,083.70 a week in May 2026, or roughly $108,000 a year before tax.

So what would it actually take to generate $90,000 without working for it?

Why ASX dividend shares can do the job

Australian companies pay out more of their earnings than almost anywhere else in the world.

Franking credits are the reason.

Our system refunds the company tax already paid on dividends, which encourages generous payout ratios and makes ASX dividend shares unusually effective for generating income.

The maths on a $90,000 income

Let us use a real fund rather than a hypothetical portfolio.

Vanguard Australian Shares High Yield ETF (ASX: VHY) tracks the FTSE Australia High Dividend Yield Index.

The ETF holds 92 companies, charges 0.25% a year and manages a little over $8 billion.

The fund carries a forecast yield of 4.2%, or 5.5% once franking credits are included.

At 4.2%, generating $90,000 in cash distributions requires about $2.14 million. On the grossed-up figure of 5.5%, the number falls to roughly $1.64 million.

That difference is entirely franking credits.

These credits arrive as a tax offset rather than as cash in your account, so the answer lies somewhere between those two numbers depending on your marginal rate.

What you would actually own

VHY ETF is concentrated by design.

Its largest holdings are Commonwealth Bank (ASX: CBA), BHP Group (ASX: BHP), Westpac (ASX: WBC), National Australia Bank (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ).

That is a portfolio dominated by the major banks and one very large miner.

Performance has been strong recently, returning 17.87% over the year to 31 July 2026, and 10.22% annually over the past decade.

Distributions are paid quarterly, which suits anyone trying to replace a fortnightly or monthly pay packet.

How long it would take to get there

Someone investing $2,000 a month at VHY’s decade-long return of 10.22% would pass $1.6 million in a little over 20 years.

Add a lump sum of $100,000 at the start and that timeline shortens by about three and a half years.

Reinvesting distributions also contributes to the compounding.

Drawing income early slows down your progress because every dollar spent along the way is a dollar that never compounds.

The catch with relying on ASX dividend shares

Dividends are not contractual.

Banks cut them in 2020, and miners cut them whenever commodity prices fall.

A 4.2% yield also assumes you never need to sell units to cover a shortfall.

Inflation is the other problem, and it is the one most income investors underestimate.

With the cash rate held at 4.35% and the Reserve Bank warning that inflation is still too high, a fixed $90,000 buys less every single year.

An income portfolio needs to grow its distributions, not simply pay them.

Foolish takeaway

Somewhere between $1.6 million and $2.1 million is the most representative answer.

That may sound like a large number, and it takes decades of contributions and compounding to reach.

The encouraging part is that you do not need to get there in one leap.

Reinvesting distributions along the way does most of the heavy lifting.

For anyone building toward financial independence, ASX dividend shares remain one of the most practical tools available.

The post How much do you need invested in ASX dividend shares to replace a $90,000 salary? appeared first on The Motley Fool Australia.

More reading

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• 3 reasons to buy CBA shares following its results
• Bell Potter names the best ASX shares to buy in August
• Want income for life? Here’s how I’d build an ASX dividend portfolio
• How much is needed in superannuation for $1500 in weekly passive income?

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian Age Pension is one of the most generous in the world, and that’s very appealing for retirees. However, I think the high-yield ASX dividend stock WCM Global Growth Ltd (ASX: WQG) is even more appealing.

WCM Global Growth is a listed investment company (LIC), though it’s not among the most famous. There are more famous names, such as Australian Foundation Investment Co Ltd (ASX: AFI) and Argo Investments Ltd (ASX: ARG).

The LIC seeks to invest in high-quality global stocks with improving economic moats and positive corporate cultures.

There are several compelling reasons to prefer the LIC to the Age Pension.

Rising dividends

I think one of the best reasons to like this LIC is how the high-yield ASX dividend stock is growing its payout at a significantly faster pace than inflation.

The business has provided guidance that it will keep hiking its quarterly dividend at a good pace over the next year.

It expects its June 2027 payment to be 13% higher than the June 2026 payment. The annual dividend per share has increased every year since 2019. Dividend growth is not guaranteed, but the future looks bright for payouts in the coming years.

Large dividend yield

The next year of dividends looks like it will be very rewarding for shareholders with a good dividend yield.

WCM Global Growth has guided that it will pay 9.59 cents per share over the next year, which translates into a grossed-up dividend yield of 6.5%, including franking credits, at the time of writing.

Plus, that’s just the starting dividend yield. The yield could continue to improve as the business grows.

Capital growth

Another reason to like this high-yield ASX dividend stock is that it’s delivering a rising share price for investors too. Of course, past performance is not a guarantee of future performance.

Not only is the business delivering excellent dividends, but its attractive returns are helping drive the WCM Global Growth share price higher with the retained investment money.

Since inception in June 2017, the LIC’s portfolio has delivered an average return per year of 15.9%. In the past five years, the WCM Global share price has risen by around 30% (and it’s up 70% in the past four years).

How many shares would it take to equal the Age Pension?

Currently, for single Australians, the maximum annualised Age Pension they can receive is approximately $31,200.

To receive that much over the next year would require 325,339 shares, not including the franking credits. If we include the franking credits, it would require 233,577 shares.

While I don’t have anywhere near that much invested in the high-yield ASX dividend stock, I do have a sizeable position because I’m bullish about its future ability to deliver attractive returns and continue growing its dividend.

The post 233,577 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $5,500 monthly passive income?
• WCM Global Growth earnings: Profit lifts dividend and outlook
• How much is needed in superannuation to target a $40,000 annual passive income?
• How much do I need to retire on $100,000 a year at 60?
• How much is needed in superannuation to target a $2,000 monthly passive income?

Motley Fool contributor Tristan Harrison has positions in Wcm Global Growth. 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.