Certain ASX blue-chip shares are excellent contenders for passive income given their pleasing dividend yields.

Strength and stability are reassuring factors for investors seeking a strong dividend each year, even through tougher economic conditions.

With that in mind, I want to highlight the two stocks below as contenders for passive income.

Charter Hall Long WALE REIT (ASX: CLW)

Rental income is predictable and locked in thanks to the terms of lease agreements. This makes certain real estate investment trusts (REITs) very attractive.

Charter Hall Long WALE REIT has a diversified portfolio of properties. Within that portfolio are long-term leases.

It has a weighted average lease expiry (WALE) of around nine years, which is a long time and provides significant rental security.

The REIT has an occupancy rate of around 100%. Approximately 99% of the portfolio is leased to blue-chip tenants such as government entities, Endeavour Group Ltd (ASX: EDV), Telstra Group Ltd (ASX: TLS), BP, Coles Group Ltd (ASX: COL), Metcash Ltd (ASX: MTS), David Jones, Westpac Banking Corp (ASX: WBC), Arnott’s Group and Sonic Healthcare Ltd (ASX: SHL).

It’s those sorts of tenants that can provide investors with commendable reliability during all economic conditions.

I like the areas of the commercial market the REIT is invested in, including hotels, grocery and distribution, telecommunications exchanges, data centres, service stations food manufacturing, healthcare and more.

Despite the headwind of higher interest rates, the ASX blue-chip share is expected to maintain its operating earnings per security (EPS) of 25.5 cents in FY27. The business plans to pay a 100% distribution payout ratio, so the distribution is also expected to be 25.5 cents per security.

The likely payout for the 2027 financial year translates into a forward distribution yield of 7.8%.

Australian United Investment Company Ltd (ASX: AUI)

Another ASX blue-chip share that looks compelling is this listed investment company (LIC) with a long history of paying dividends.

It was founded in 1953 and it invests in both ASX shares and international shares. It aims to provide sustainable dividend income over the long-term.

At the end of September 2026, its largest holdings were Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), CSL Ltd (ASX: CSL), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES), Westpac Banking Corp (ASX: WBC), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Transurban Group (ASX: TCL).

The LIC has an incredibly low management expense ratio of 0.09% which is one of the lowest-costing portfolios in Australia.

The ASX blue-chip share has paid a dividend every year since its listing in 1974 and has maintained or increased its dividend each year since 1994.

In FY27, it plans to pay 37 cents per share of ordinary dividends and a special dividend of 8 cents per share. The total dividend per share of 45 cents translates into a grossed-up dividend yield of 5.4%, including franking credits, at the time of writing.

It currently trades at a 14% discount to the net tangible asset (NTA) per share, as of September 2026. This discount makes the valuation look attractive to me.

The post 2 ASX blue-chip shares offering large dividend yields appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Transurban Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group, Transurban Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, CSL, Sonic Healthcare, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are in the market for some new portfolio additions, it could be worth seeing what the team at Bell Potter is saying about the three ASX shares in this article. 

Does the broker rate them as buys, holds, or sells? Let’s find out:

Mesoblast Ltd (ASX: MSB)

Bell Potter notes that this biotechnology company released its quarterly update and revealed Ryoncil sales of US$28 million, which was well short of its forecast of US$40 million.

However, it points out that revenues were adversely impacted by low patient numbers across the summer months, with the low point in August.

As a result, the broker remains positive and has retained its buy rating on Mesoblast shares with a slightly trimmed price target of $4.40. It said:

The miss on September quarter revenues requires a downgrade to the forecast for FY27 Ryoncil revenues. The forecast is lowered by 18% ($243m to $203m) with the NPAT reduced by a similar quantum to $26.7m. The FY28 revenue forecast is reduced by 7%, however, there are no changes to the long-term outlook. Price target is reduced to $4.40.

PLS Group Ltd (ASX: PLS)

Bell Potter has also been looking at lithium giant PLS Group. It highlights that the company has announced plans to double Pilgangoora nameplate spodumene concentrate capacity to 2Mtpa. 

A feasibility study outlined development capex of $1.9 billion, with an incremental net present value (8% discount rate) of $2.7 billion.

In response, the broker has retained its buy rating on PLS shares with a trimmed price target of $4.10. It said:

While P2000 introduces medium-term execution risk, completion will meaningfully strengthen PLS’ long-term position as a large, low-cost hard-rock lithium producer. The company retains offtake optionality with ~50% of FY30 expected SC production of 2Mtpa uncontracted. Colina development studies are progressing, providing additional organic growth optionality in markets with strong underlying demand fundamentals from EV adoption and BESS deployment.

Seek Ltd (ASX: SEK)

The broker isn’t quite as positive on this job listings company’s shares. 

However, it was pleased to see that Seek’s job ad volume index slowed its annual rate of decline to -3.5% in September (Aug -5.3%). It also printed a third consecutive non-negative month on month number.

In response to the news, the broker has retained its hold rating on Seek shares with an improved price target of $13.60. It said:

We await a positive shift in sentiment or further visibility on jobs volumes recovery; potential near term Growth Fund monetisation remains an asymmetric upside risk, though the current interest rate backdrop may also be an additional headwind in seeking a desired exit price for nominated assets. 

SEK appears to be improving operations to sustainably target 10% yield growth on top of strong cost controls, however, despite trading at deep value ex. Growth Fund, macro-based headwinds suggest difficult sentiment near-term for the stock. Maintain Hold.

The post Buy, hold, sell: Mesoblast, PLS, and SEEK 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.

If you are looking for new additions to your portfolio, then it could be worth listening to what analysts are saying about the top ASX shares named below, courtesy of The Bull. 

Here’s what they are recommending this week:

Ramelius Resources Ltd (ASX: RMS)

The team at Fairmont Equities thinks this gold miner could be an ASX share to buy this week.

It likes Ramelius Resources due to its belief that gold stocks will rally higher due to strong gold prices. It said:

Gold prices appear to have bottomed after trading much higher in early 2026. The share prices of various gold mining stocks have held up well, and this sign of strength is bullish. I’m expecting gold mining stock prices to rally higher from here as they follow potentially higher gold prices. 

RMS is an Australian gold producer with no debt and strong free cash flow. It pays a fully franked dividend and has been buying back shares. RMS is highly leveraged to an increasing gold price and the company’s outlook is bright.

Sigma Healthcare Ltd (ASX: SIG)

Over at Baker Young, it has named Chemist Warehouse owner Sigma Healthcare as an ASX share to buy.

Baker Young sees an opportunity for investors after recent share price weakness. It explains:

Sigma Healthcare is a wholesale distributer of pharmaceutical goods and medicines. Sigma merged with pharmaceutical retail giant Chemist Warehouse in 2025. The company’s share price has retreated to appealing entry levels at October 15. Its competitive position remains unrivalled, in our view. Structural health trends should continue to support organic growth. 

Although some competition is likely, the GLP-1 weight loss drug rollout should boost treatment sales. The Chemist Warehouse branded store network is forecast to generate double digit, like-for-like sales growth in full year 2027.

Xero Ltd (ASX: XRO)

Baker Young is also feeling positive about cloud accounting platform provider Xero and thinks it could be an ASX share to buy now.

It sees the material decline in the Xero share price as a buying opportunity for investors. Especially given its view that small to medium sized businesses will continue to use accounting and payment software rather than using AI to develop their own systems. It explains:

Xero is an accounting software provider. Concerns about future growth rates due to perceived competitive threats from AI tools remain. But we believe the material decline in XRO’s share price amid the company continuing to deliver operational performance inline or above market guidance has created a compelling value opportunity. 

We believe small to medium sized firms handling critical financial information will continue using trusted third party suppliers rather than develop their own systems. XRO’s strong growth rates justify higher than average multiples, in our view. We’re comfortable building positions for longer term investors around current levels.

The post Experts name 3 top ASX shares to buy this week appeared first on The Motley Fool Australia.

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