Real estate investment trusts can be a good investment if you’re looking for stability and predictable income streams, but that’s not to say they’re without risk.

Two of the trusts I’m looking at today suffered major shocks over the past year, but they’ve had some good news over the past week, which has shored up investor confidence.

Let’s look at how they’re expected to perform on the dividend front going forward.

HealthCo Healthcare and Wellness REIT (ASX: HCW)

This real estate trust was caught up in the failure of private hospital operator Healthscope, which went into receivership in May, casting doubts over the income streams from hospitals owned by the trust.

The good news is that the Healthscope hospitals were able to continue operating, albeit split up among several new owners.

Healthco announced just this week that binding agreements had been finalised for the 10 final Healthscope hospitals owned by itself and the associated Unlisted Healthcare Fund, which led the company to reinstate its dividend payments.

Healthco is aiming to pay 6 cents per share in dividends over the full year, which equates to an 8% dividend yield at the share price of 74.75 cents at the time of writing.

Macquarie predicts this strong dividend stream will continue through FY29, when it will be 8.7%, and the broker also has a price target of $1.10 on Healthco shares, up from 88 cents as a result of the Healthscope resolution.

The broker said the company is trading at a steep discount to its $1.35 net tangible asset backing.

Arena REIT (ASX: ARF)

Arena also had some hiccups over the past year, with childcare operator Edge Early Learning Centre placed in administration, casting doubt on lease payments from that portfolio.

Arena said this week that the administrator of Edge had entered into an agreement with Goodstart Early Learning for the acquisition of 31 early learning centre businesses operated by Edge.

The proposed transaction includes services at 20 of the 27 centres owned by Arena and occupied by Edge, and Arena said it was still being paid rent for all 27 centres.

Arena shares have added almost 25% over the week to be changing hands for $2.48 at the time of writing.

Arena has previously guided to dividends per share of not less than 18 cents for FY27, which would constitute a dividend yield of 7.3%.

Centuria Office REIT (ASX: COF)

Centuria is forecasting dividends of 9 cents per share in FY27, which, at the time of writing, equates to a dividend yield of 10.8%.

The company’s portfolio includes 18 assets worth $1.8 billion, which had 91% occupancy last year.

COF Fund Manager Belinda Cheung said recently the focus for the current year would be on “maintaining high portfolio occupancy, improving portfolio weighted average lease expiry by addressing near-to medium-term expiries while curating a quality portfolio of modern, sustainable office assets”.  

The post 3 ASX real estate investment trusts paying a dividend yield of more than 7% appeared first on The Motley Fool Australia.

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• Macquarie tips an 8% dividend yield and 46% share price gain for this stock
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• Arena REIT shares in focus as Edge Early Learning lease update issued
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• 6 ASX REITs just hit 52-week lows. Do any brokers say buy?

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock Future Generation Australia Ltd (ASX: FGX) is one of my favourite ideas as a high-yield passive income option. On top of that, it’s providing growing dividend payments too. I think it’s a true dividend winner.

Future Generation Australia is a listed investment company (LIC) that invests quite differently from many other LICs.

A typical LIC will usually invest in a portfolio of ASX shares or international shares. This ASX dividend stock operates in a way that adds significant diversification and lower volatility.

Significant diversification

Future Generation Australia invests with a fund-of-funds strategy. It’s invested in the funds of 16 different fund managers, including L1 Group Ltd (ASX: L1G), Vinva, Firetrail, Smallco, Eley Griffiths, and TenCap.

By investing in these funds, the ASX dividend stock’s portfolio is less concentrated on the largest businesses on the ASX than the weightings of the S&P/ASX 300 Index (ASX: XKO).

In other words, Future Generation Australia is much more focused on smaller, faster-growing businesses that could help provide better returns over time.

Additionally, these fund managers don’t charge any management fees to Future Generation Australia for a special reason.

Philanthropic nature

All of the fund managers involved work on a pro bono basis so that the ASX dividend stock can donate 1% of its net assets to charities focused on young Australians.

Some of the current recipients of donations include Australian Children’s Music Foundation, Lighthouse, Mirabel Foundation, Giant Steps, and Raise.

Since inception, Future Generation Australia has donated $54.9 million and each year that figure becomes larger. The LIC is making an important contribution to Australia’s next generation, and I’m glad I’m a shareholder.

Great dividends

There are two reasons why I think this LIC is so appealing for dividends.

First, it offers a very compelling dividend yield. It has provided guidance that it will pay an annual dividend per share of 7.6 cents in FY26.

At the time of writing, that translates into a grossed-up dividend yield of 8.3%, including franking credits.

The second reason to really like the business is that its dividend is consistently growing. It has grown every year since 2015, providing more than a decade of consistent payout increases.

It expects to hike its annual dividend by 5.6% for FY26, which would mean the dividend will have grown by 90% since 2015.

$4,000 investment in the ASX dividend stock

I think now is a good time to invest with the FY26 half-year dividend to go ex-dividend (and be paid) in November.

At the time of writing, an investor can buy 3,065 Future Generation Australia shares with a $4,000 investment, which I think is a solid investment choice.

But it’s not the only ASX share I’d buy for returns right now.

The post $4,000 buys 3,065 shares in an impressively reliable ASX dividend stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and L1 Group. 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.

Zip vs Block shares: Which payments stock stacks up best?

When it comes to payments stocks on the ASX, Zip Co Ltd (ASX: ZIP) and Block Inc (ASX: XYZ) catch the eye for anyone watching the fast-moving world of digital money and buy-now, pay-later (BNPL) services. With both companies offering innovative ways for consumers and businesses to handle payments, everyday investors might be weighing Zip and Block against each other for their next portfolio move. Here’s how they compare on the fundamentals, value, and recent share price action.

The case for Zip

Zip is an Australian financial technology business focused on disrupting the traditional credit card and payments market. Zip operates in Australia, New Zealand, the United States, and 12 countries altogether, offering point-of-sale credit and BNPL services through products like Zip Money and Zip Pay. Founded in 2013, the company’s core pitch is to give shoppers more flexibility and an alternative to old-school credit cards.

Looking at the fundamentals:

• Market cap stands at $2.58 billion, so it’s a mid-cap ASX player with solid reach.
• Zip’s P/E ratio is 22.63, which is at the lower end for a payments or fintech stock, potentially signalling more attractive value compared to fast-growth peers.
• Earnings per share come in at $0.091, supporting its move toward profitability.

Dividend hunters won’t find much here, though — Zip currently pays no dividend.

The case for Block

Block formerly known as Square, was originally a US payments upstart. Now, it’s a global force in payments tech, offering everything from merchant point-of-sale solutions to Cash App for peer-to-peer payments, as well as hosting platforms like Weebly. In 2022, Block snapped up Aussie juggernaut Afterpay in a headline-making deal, adding serious BNPL firepower to its roster. The business is dual-listed in the US and Australia, catering to a broad investor base.

Key stats for Block Inc:

• Its market cap is a substantial $4.21 billion, making it notably bigger than Zip on the ASX stage.
• The P/E ratio is 132.23, vastly higher than Zip’s, which indicates investors are pricing in a lot of future growth or that current profits are relatively slim compared to the company’s valuation.
• Earnings per share are showing at $0.560.

Block also offers no dividend at this time.

Valuation comparison

With three key valuation metrics available for both, here’s how Zip and Block stack up:

Metric	Zip	Block
Market Cap	$2.58 billion	$4.21 billion
P/E Ratio	22.63	132.23
Earnings per Share	$0.091	$0.560
Dividend Yield	0.00%	0.00%
Year To Date Return	-37.7%	9.0%

Note: Block Inc’s reported P/E appears very high compared to its EPS, suggesting investors are paying a heavy premium for expected growth and the Afterpay component. Both companies are not offering dividends right now.

Recent share price momentum

To line things up evenly, let’s use 2 October 2026 as the most recent shared date both companies have closing prices for. Here’s what the short-term momentum looks like as of that date:

• Zip: Closed at $2.07 on 2 Oct 2026, up 3.5% from the previous close. Despite the daily bounce, its year-to-date return sits deeply in the red at -37.7% — meaning Zip shares have struggled significantly so far this year.
• Block: Closed at $106.62 on 2 Oct 2026, up 0.7% on the day. Block, on the other hand, has delivered a positive year-to-date return of 9.0%, showing stronger recent momentum versus Zip.

Which is the better buy?

Looking at the numbers, I’d lean toward Block as the pick of these two payments stocks right now. The decisive factor for me is the year-to-date performance: Block shares have pushed ahead nearly 9%, while Zip is down a hefty 37.7%. That sort of divergence tells me Block is winning investor confidence and, crucially, executing better in this tough market for fintechs.

Yes, Block’s P/E ratio is sky-high at 132, and that does make me pause — but with its diversified business, global scale, and the Afterpay acquisition now bedded down, I can see why the market is backing Block for future earnings growth. Zip is fighting hard and has managed to move towards profitability, but its steep price decline and smaller scale leave me with less confidence, at least based on the data I have in front of me.

Of course, neither company is paying shareholders a dividend, so it’s really about capital growth potential. On current fundamentals and recent momentum, Block gets my vote as the more compelling buy.

The post Zip vs Block: Which ASX payments share is better? appeared first on The Motley Fool Australia.

More reading

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• Droneshield vs Zip Co: Which tech share is the better ASX growth pick?
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• What would it take for Zip shares to double?
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block. 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.