It’s coming up to reporting season and this is a great time to buy undervalued ASX dividend shares for passive income before they report in February 2026.
Market expectations about earnings and interest rates have changed significantly since the start of 2025. The strength of the Australian economy has erased thoughts that the RBA may cut this year. With a few share prices drifting lower in recent times, there are some great buys to be found.
Charter Hall Long WALE REIT (ASX: CLW)
In some ways, this could be the best real estate investment trust (REIT) of the sector.
Many REITs are focused on one particular sector such as industrial, retail, office and so on. The Charter Hall Long WALE REIT is invested in almost every type of commercial property you could think of. It’s invested in data centres, telecommunication centres, offices, industrial and logistics, retail (Bunnings), convenience (including service stations) and hospitality (such as hotels).
I like the diversification that it gives investors wanting to be invested in (commercial) property, reducing risks and expanding its real estate investment universe for potential buys.
The ASX dividends share is expecting to increase its operating earnings per share and passive distribution income per share by 2% to $0.255 in FY26. That’s a 6.4% yield!
Rental income each year is built into Charter Hall Long WALE’s leases with its tenants, which a helpful organic boost for investors hoping for dividend growth in subsequent years from this ASX dividend shares.
WCM Global Growth Ltd (ASX: WQG)
Listed investment companies (LICs) shouldn’t be underrated as an option for dividends because of how they can translate investment gains into dividend payments for shareholders.
WCM Global Growth may be one of the best options because of how it’s able to combine a strong global share investment strategy with rising passive dividend income.
WCM, an investment manager based in California, looks for businesses with expanding economic moats (competitive advantages) and that have a company ethos geared towards improving the competitive advantages.
Those sorts of businesses are the ones that will probably become increasingly profitable as the years go by, unlocking positive (and hopefully market-beating) returns for the WCM portfolio.
Between inception (June 2017) and December 2025, the ASX dividend share’s portfolio delivered an average return per year of 16.5% after management fees and performance fees. That shows how effective the investment strategy has been.
The LIC expects to steadily increase its quarterly dividend over 2026. It’ll be 2.16 cents per share to be paid in March 2026, 2.21 cents per share to be paid in June 2026, 2.24 cents per share to be paid in September and 2.4 cents per share to be paid in December.
The upcoming 12 months of passive dividend income comes to a dividend yield of 6.6%, which is a very useful starting dividend yield.
