Some of the best places to find passive income in Australia are ASX dividend shares, in my view.

What’s better than a combination of a good dividend yield and potential capital gains?

Of course, neither dividends nor capital growth is guaranteed. That’s why I prefer to look at undervalued stocks with a good outlook for payout growth in the coming years.

Let’s look at two ASX dividend shares that have a dividend yield of at least 6%.

Dexus Industria REIT (ASX: DXI)

The first business I want to highlight is the real estate investment trust (REIT) Dexus Industria REIT. It owns a portfolio of industrial properties across Australian cities, predominantly in key metropolitan locations.

Industrial properties are a compelling place to invest because the rental income is benefiting from multiple tailwinds.

For example, there is long-term growth of e-commerce usage, which requires warehouses. Data centre demand is another driver of rental value of industrial land. Demand for refrigerated space is also growing for both food and medicine. And so on.  

In FY26, the ASX dividend share reported strong like-for-like portfolio income growth of 5.3%, supported by rental escalations, strong releasing spreads (new rental contracts earning more than the old one), and high occupancy of 98.8%.

Despite high interest rates, Dexus Industria REIT expects to maintain its FY27 distribution at 16.6 cents per security. That translates into a forward distribution yield of 7%.

Universal Store Holdings Ltd (ASX: UNI)

The Universal Store company has multiple businesses under its umbrella – Universal Store, Perfect Stranger, and CTC (with the THRILLS and Worship brands). It sells youth casual fashion apparel.

Its FY26 result impressed, given the difficult operating environment, with 12.9% sales growth to $376.1 million and 16.3% underlying net profit growth to $40.5 million. This allowed the business to hike its annual dividend per share by 11.7% to 43 cents.

The ASX dividend share is delivering sales growth from both an expanding store network and impressive like-for-like (LFL) growth at its existing stores. The Universal store business generated 8.1% LFL growth, and Perfect Stranger achieved 13% LFL growth.

In the first seven weeks of FY27, the company saw direct-to-consumer sales rise by another 9.1% year over year. Management intends to open another 16 to 20 stores across the business in FY27, which can help grow its sales and margins further.

Based on the FY26 annual dividend payout of 43 cents per share, the business has a trailing grossed-up dividend yield of 7.6%, including franking credits, at the time of writing. I expect the ASX dividend share’s payout will grow again in the 2027 financial year.

The post 2 ASX dividend shares with yields above 7% 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 recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The IperionX Ltd (ASX: IPX) share price is in focus after announcing a second major U.S. Army contract for industrial-scale titanium production, with US$11.5 million in new funding now in place and a total potential value up to US$25.4 million.

What did IperionX report?

• Secured US$11.5 million funding under Task Order 2 as part of a US$99 million U.S. Army SBIR Phase III contract
• Task Order 2 could increase to a maximum value of US$25.4 million if all options are exercised
• Three core work packages now fully funded, including continuous furnace and in-house fastener equipment
• Advancement of continuous powder-to-part titanium manufacturing at IperionX’s Virginia facility
• Potential program expansion into aerospace and refractory metal components via four unfunded option packages

What else do investors need to know?

Task Order 2 will help IperionX bring critical titanium manufacturing steps in-house, aiming to boost throughput and lower production costs for U.S. defense applications. The newly announced industrial-scale equipment supports both defense and potential commercial programs, by enabling the company to deliver large quantities of titanium parts, like track pins and fasteners, for military applications.

Four optional workstreams in the contract could see IperionX’s technology expand into aerospace-grade titanium, advanced powder production for additive manufacturing, and strategic metals including C103 and niobium. These options remain subject to further U.S. government funding and formal approvals.

What did IperionX management say?

Taso Arima, IperionX CEO, commented:

This second U.S. Army task order represents an important step in scaling IperionX’s titanium powder-to-part manufacturing platform. The SBIR Phase III award aims to advance continuous and industrial-scale HSPT and dehydride capacity and bring titanium fastener finishing fully in-house at our Virginia titanium manufacturing facility.

This award aligns with GenX, our next-generation continuous HAMR production platform, which together will provide an integrated American titanium manufacturing system. The program will expand our capacity to manufacture titanium track pins, bolts and fasteners for the U.S. Army, shorten production lead times and strengthen the domestic titanium manufacturing capabilities required to support U.S. defense supply chains.

What’s next for IperionX Ltd?

IperionX plans to fast-track installation of new furnace and finishing equipment at its Virginia site, supporting higher-volume manufacturing and shorter delivery times for U.S. Army requirements. The additional, unfunded program options suggest possible future expansions into aerospace, advanced alloys, and other strategic markets, but depend on further contract and customer milestones.

A focus on integrating continuous manufacturing across both titanium powder and finished parts is central to the company’s strategy, as this can lower costs and improve reliability for customers in the defense sector and beyond.

IperionX Ltd share price snapshot

It has been a difficult 12 months for the IperionX share price. Over the period, the company’s shares have significantly underperformed the S&P/ASX 200 index (ASX: XJO) with a 55% decline.

View Original Announcement

The post IperionX wins US Army contract to ramp up titanium production 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

The Tamboran Resources Ltd (ASX: TBN) share price is in focus as the company reports its first gas sales from the Shenandoah South Pilot Project, with a strengthened balance sheet and major milestones achieved over the past year.

What did Tamboran Resources report?

• First gas sales from the Shenandoah South Pilot Project to the Northern Territory Government imminent in 3Q 2026
• Pro forma cash balance of US$298 million as at March 31, 2026
• Completed acquisition of Falcon Oil & Gas
• Secured infrastructure debt, partly backed by the NT Government
• Record well performance and on-time, under-budget construction of Sturt Plateau Compression Facility (SPCF)

What else do investors need to know?

Tamboran has solidified its position as the largest Beetaloo Basin acreage holder, with 2.8 million net prospective acres and active partnerships with major US drilling and oilfield service providers. Over the past 12 months, the company delivered key strategic and operational milestones, including a US$300 million capital raise and completion of critical infrastructure.

Safety and environmental performance also featured strongly, with zero serious injuries and no reportable environmental incidents. Locally, Tamboran has increased engagement with Northern Territory communities, spending over $36 million with NT businesses and supporting Indigenous suppliers.

What did Tamboran Resources management say?

Chief Executive Officer Todd Abbott said:

Twelve months ago, we set out to reach first gas in the Beetaloo Basin, and we are now delivering on that objective. Our team’s performance and partnerships have positioned Tamboran to unlock this world-class resource for the region and our shareholders.

What’s next for Tamboran Resources?

Looking ahead, Tamboran plans to expand capacity at the SPCF up to 100 TJ/d by mid-2028 and continue appraisal drilling in both the East and West Beetaloo depocenters. The company is also progressing new pipeline and joint venture opportunities aimed at connecting its gas to both domestic markets and potential LNG export facilities.

Further targets include cost reductions in drilling and completions, additional resource delineation, and participation in strategic infrastructure projects like the Territory Energy Link.

Tamboran Resources share price snapshot

Over the past 12 months, Tamboran Resources shares have risen 47%, outperforming the All Ordinaries Index (ASX: XAO).

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The post Tamboran Resources achieves first gas sales and robust cash position appeared first on The Motley Fool Australia.

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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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.