Why Invest for Passive Income in Superannuation?
Investing for passive income in superannuation is a smart strategy, especially given the lower tax rates compared to individual tax rates for full-time workers. This makes it an attractive option for those looking to build long-term wealth. There are several ASX dividend shares that are not only driving their underlying values higher but also delivering bigger payments to shareholders.
Two businesses stand out as excellent investment options at the moment. Both are trading at good prices and offer great dividend yields. I would be very happy to invest $15,000 across these two names today.
Centuria Industrial REIT (ASX: CIP)
Centuria Industrial REIT is a real estate investment trust (REIT) that owns a portfolio of commercial properties. Unlike traditional real estate investments, there is no negative gearing involved here. The industrial properties owned by the REIT are spread across Australia's cities, in areas where there is limited supply, significant demand, and a very low vacancy rate. This combination helps drive the rental value of the properties, boosting their earnings power and the overall value of the real estate.
In the FY26 third-quarter update, the business reported that its FY26 year-to-date re-leasing spreads were 36% – a significant increase in rental income on new leases. The REIT is expecting to grow its FY26 annual distribution per unit by 3% to 16.8 cents, which translates into a distribution yield of 5.75%. This is a solid starting yield for passive income in superannuation.
Grant Nichols, the fund manager of the REIT, said:
"Looking ahead, we foresee the domestic infill industrial market's supply-demand imbalance to persist with limited construction of new warehouses coupled with consistently high occupier demand as tenants look to strengthen their delivery times and reduce transport costs. Current macroeconomic uncertainty, resultant of the Middle East conflicts and global oil constraints, is impacting inflation and construction price pressures. These factors are expected to curtail future industrial market supply. The value of high-quality, existing infill industrial assets is expected to increase as the disconnect to replacement cost continues to escalate."
This outlook bodes well for long-term returns, in my view.
Future Generation Global Ltd (ASX: FGG)
The other ASX share I want to highlight is Future Generation Global, a listed investment company (LIC) that invests in global shares. Unlike many other LICs, this one doesn't charge any management fees or performance fees. Instead, it donates 1% of its net assets to youth mental health charities.
Additionally, it's not controlled by a single fund manager. Instead, there are 16 different funds in the portfolio, which includes more than 3,700 underlying shares. This structure enables Future Generation Global to provide investors with significant diversification.
On the dividend side, the business has increased its annual dividend per share each year since FY19. This means it has already given investors several years of regular dividend increases, and I expect more to come.
At the end of April 2026, it had a profit reserve of 71.5 cents per share and (excluding the special dividend) a grossed-up dividend yield of 7%, including franking credits. This makes it a great option for passive income in superannuation, with a large and growing dividend, plus the benefits of diversification.
Other Considerations
Before investing in Centuria Industrial REIT, it's important to consider the views of other experts. For instance, Motley Fool investing expert Scott Phillips recently revealed what he believes are the 5 best stocks for investors to buy right now, and Centuria Industrial REIT wasn't one of them. However, the Motley Fool Share Advisor service has provided thousands of paying members with stock picks that have doubled, tripled, or even more.
For those interested in creating a river of dividends alongside work earnings, there are several ASX stocks that can help achieve this goal. Additionally, understanding how much is needed in superannuation to target a $5,000 monthly passive income can be valuable for long-term planning.
Other recent updates include Centuria Industrial REIT booking $188m in Q3 asset sales and reaffirming its FY26 outlook. Investors are also looking at where they would invest $10,000 into ASX 200 dividend shares right now.
Final Thoughts
Whether you're considering investing in Centuria Industrial REIT or Future Generation Global, both options present strong potential for generating passive income through superannuation. It's essential to conduct thorough research and consider your financial goals before making any investment decisions.
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