Here are 2 ASX income stocks with yields above 7%

ASX income stocks can be exciting for investors focused on passive income because not only can they deliver attractive dividend yields, but they also can deliver capital growth if their earnings are growing.

I like dividend-paying shares because we get to receive rewards for owning shares for no ongoing effort. Businesses are doing their best to make money for investors and we get to share in that profit in the form of dividends.

Dividends aren't guaranteed of course, but businesses that have a history or a commitment to paying passive income are quite likely to continue their payments to investors. Let's look at two that are projected to pay very large dividends.

GQG Partners Inc (ASX: GQG)

GQG is one of my favourites when it comes to large dividends. In recent times, the business has been committed to a dividend payout ratio of 90% of distributable earnings, which has provided strong dividend income.

As a funds management business, it doesn't take much capital to grow. It doesn't need more stores, a new factory or warehouse, additional delivery trucks and so on. The same investment team can manage an additional $100 million of money with little additional cost.

The ASX income stock is currently seeing clients add more than US$1 billion of funds for GQG to manage each month (AKA net inflows), which is helping grow its funds under management (FUM), which is a key input for net profit. In the first for months of 2025, GQG saw net inflows of US$6 billion, helping the company finish April 2025 with US$163.6 billion of FUM.

According to a forecast from Macquarie, GQG could pay a dividend yield of 11% in 2026, which would represent a truckload of cash flow for investors. If GQG's funds can generally continue outperforming the benchmarks over the long-term, I'd describe GQG as a very compelling pick right now.  

Accent Group Ltd (ASX: AX1)

Broker UBS describes Accent as a business that operates in the performance and lifestyle market segment in Australia and New Zealand, predominately footwear, with a growing apparel business.

It operates multiple brands such as The Athlete's Foot (which is also franchised), Platypus and Stylerunner. It also operates as a distributor of brands such as Skechers, Vans and Hoka. Accent is also working on growing its online sales, which is another growth avenue.

The ASX income stock has a strategy of regularly opening new stores. Not only can that boost revenue, but it also adds scale advantages for the company, hopefully helping margins.

Another way the business can grow earnings is by adding additional brands to its network. It recently signed an agreement with Frasers Group and in FY26 it will start working with Dickies and Lacoste.

UBS is currently estimating the business could pay an annual dividend per share of 10 cents in FY26, which translates into a grossed-up dividend yield of 7.4%, including franking credits. Further dividend growth is forecast in FY27 and FY28.

The post Here are 2 ASX income stocks with yields above 7% appeared first on The Motley Fool Australia.

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Accent Group and Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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