Dividend income may seem increasingly attractive these days following the Australian Federal budget tax changes. Dividend yields above 8% could be particularly attractive.

Some investors may want a lot of passive income, with capital growth now seeming less appealing than it used to be.

I’m going to talk about two names with particularly high dividend yields that could be compelling long-term buys.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment companies (LICs) that targets ASX blue-chip shares. It is one of the leading LICs on the ASX, in my view.

The Wilson Asset Management investment team actively look for undervalued businesses at the larger end of the ASX’s market capitalisation list.

Some of the businesses it has actively invested in include Stockland Corporation Ltd (ASX: SGP), Rio Tinto Ltd (ASX: RIO), James Hardie Industries plc (ASX: JHX), Mirvac Group (ASX: MGR) and South32 Ltd (ASX: S32).

The portfolio has performed solidly over the long-term – since inception in May 2016 it has returned an average of 12.2% per year to August 2026, before fees and expenses and taxes. That return has been almost 3% better per annum than the S&P/ASX 200 Accumulation Index (ASX: XJOA).

By generating good investment returns, a LIC like WAM Leaders can pay dividends in both good years and tough years.

WAM Leaders has increased its annual payout per share each year since FY17, meaning it has delivered around a decade of ongoing dividend growth for shareholders.  

Its FY26 payout was 9.6 cents per share, which translates into a grossed-up dividend yield of 10.4%, including franking credits, at the time of writing.

Future Generation Australia Ltd (ASX: FGX)

Future Generation Australia is another LIC. I think that structure is very effective for being able to pay regular dividends to investors from investment returns generated over the long-term.

While many fund managers charge sizeable investment fees (and performance fees), there are no management costs in relation to this particular LIC.

Future Generation Australia is invested in the funds of more than a dozen fund managers who all work for free so that the LIC can donate 1% of its net assets each year to youth-focused charities.

By having such a diversified portfolio, giving exposure to hundreds of underlying ASX shares, I think Future Generation Australia can be a great addition to Aussies who don’t want such a focus on ASX mining shares and ASX bank shares. The S&P/ASX 200 Index (ASX: XJO) is dominated by banking and miners, whereas the Future Generation Australia portfolio is significantly invested in smaller ASX shares (with more growth potential).

The ASX share has increased its annual dividend per share each year since 2015 – that’s more than a decade of consistent payout growth. It plans to pay an annual dividend per share of 7.6 cents for 2026, which translates into a grossed-up dividend yield of 8.04%, including franking credits, at the time of writing.

I think these are two of the most compelling ASX share ideas for passive income.

The post 2 ASX shares with dividend yields above 8% appeared first on The Motley Fool Australia.

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

There are plenty of ASX exchange traded funds (ETFs) for investors to choose from on the local bourse.

But some stand out because they provide exposure to areas of the market that could grow strongly over the next decade.

Three such examples are named below. Here’s why they could be worth watching:

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The first ASX ETF to consider is the Betashares Asia Technology Tigers ETF.

This fund gives investors exposure to leading technology companies across Asia. Its portfolio includes businesses involved in semiconductors, ecommerce, gaming, online platforms, and other areas of the digital economy. Holdings include WeChat owner Tencent and search giant Baidu.

This could be an attractive part of the market to be exposed to. Asia is home to some of the world’s most important technology companies, as well as huge consumer markets that continue to become more digital.

The fund also gives investors technology exposure away from the United States, which could be useful for anyone already holding US-focused ETFs.

There will be volatility along the way, particularly given the geopolitical and regulatory risks in the region. But over the long term, Asia’s technology sector has plenty of room to grow.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Another exciting ASX ETF to watch is the Betashares Global Robotics and Artificial Intelligence ETF.

This fund invests in companies involved in robotics, automation, artificial intelligence (AI), drones, and other related technologies.

The long-term opportunity here is significant. Businesses around the world are looking for ways to improve productivity, reduce costs, and automate more tasks.

This is already happening in factories, warehouses, hospitals, farms, and logistics networks. As robotics technology improves and becomes cheaper, it could be used in more industries and for increasingly complex jobs.

That could create a very long growth runway for the companies held by the Betashares Global Robotics and Artificial Intelligence ETF.

Global X Artificial Intelligence ETF (ASX: GXAI)

A final ASX ETF for investors to watch is the Global X Artificial Intelligence ETF.

As its name implies, this fund provides exposure to companies that are benefiting from the growth of AI.

This means businesses involved in areas such as semiconductors, software, cloud computing, data infrastructure, and automation. Holdings include Palantir (NASDAQ: PLTR), Microsoft (NASDAQ: MSFT), and Tesla (NASDAQ: TSLA).

AI has already started changing how companies operate, but we could still be relatively early in its development.

Over the next decade, it could become embedded in everything from healthcare and financial services to manufacturing, advertising, and everyday software.

Picking the individual winners could be difficult. But investors don’t have to when this ETF offers a simple way to gain exposure to the broader AI opportunity.

The post 3 very exciting ASX ETFs for investors to watch appeared first on The Motley Fool Australia.

More reading

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• Why these ASX ETFs could be strong long-term picks
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• 3 exciting ASX ETFs to watch

Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Baidu, Microsoft, Palantir Technologies, Tencent, and Tesla. The Motley Fool Australia has recommended Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) has stagnated over the past month, falling over 3%. 

However, some pockets are gaining strong momentum. 

There are several themes and sectors capturing strong tailwinds in the back half of 2026. 

Here are some ASX ETFs ignoring the broader market downturn and charging ahead. 

Cybersecurity ASX ETFs

One theme that is outperforming right now is cybersecurity. 

The strong rise in cybersecurity-related stocks over the past six months reflects a broader shift in how investors view the impact of AI on the sector.

Initially, there were concerns that AI would make cybersecurity less valuable by automating vulnerability detection and reducing the need for traditional security solutions. 

However, the market has increasingly recognised that AI is also making cyberattacks more sophisticated, scalable and difficult to defend against, creating greater demand for cybersecurity products and services. 

The rapid adoption of AI, cloud computing and digital infrastructure is expanding the potential attack surface for businesses, while growing cyber threats are encouraging companies and governments to increase security spending. 

This has strengthened expectations for long-term revenue and earnings growth across the cybersecurity industry, particularly among leading providers, and has driven a significant re-rating of the sector. 

Two beneficiaries of this trend are BetaShares Global Cybersecurity ETF (ASX: HACK) and Global X Cybersecurity ETF (ASX: BUGG). 

These funds have risen by 37% and 47% in the last 6 months and could be set up for long-term success if these tailwinds continue. 

Global healthcare and biotech ASX ETFs

The healthcare and biotechnology sector has benefited from a combination of strong innovation, improving investor sentiment and the potential for significant new markets. 

Advances in areas such as obesity treatments, oncology, gene therapy and precision medicine are creating opportunities for companies to develop new therapies with very large commercial markets, while the rapid adoption of AI in drug discovery and clinical development is raising expectations that medicines can be developed more efficiently.

These tailwinds have benefited ASX ETFs BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG) and Global X S&P Biotech ETF (ASX: CURE). 

Both have enjoyed significant momentum in recent months, and could be top buys heading into the back part of 2026. 

Gaming and Esports 

After a rough first 6 months of the year, another ASX ETF harnessing strong momentum is Betashares Video Games And Esports ETF (ASX: GAME). 

It has risen 13% since late July thanks to renewed investor confidence in the long-term growth of interactive entertainment.

The industry continues to benefit from the shift towards digital distribution, recurring revenue through subscriptions and in-game purchases, and the growing global audience for gaming, while major new game releases can create significant bursts of revenue and engagement.

At the same time, the sector is increasingly benefiting from advances in AI, which have the potential to reduce development costs, improve game creation and enable more personalised and dynamic gaming experiences.

The post These ASX ETFs are generating big momentum in the second half of 2026 appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Aaron Bell 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 BetaShares Global Cybersecurity ETF. 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.