3 ASX Dividend Stocks Offering High-Yield Passive Income in May 2026

Dividends play a crucial role in building long-term wealth as they provide a steady stream of passive income while also reflecting the underlying strength and cash generation ability of a business.
The following three upcoming ASX dividend stocks offer an opportunity for investors to generate high-yield passive income.

WAM Capital Limited (ASX: WAM)

has a market capitalisation of $1.98 billion and stands out as one of the top upcoming dividend stocks on the ASX because it holds assets of about $1.5 billion and has achieved a long-term portfolio return of 14.9% per annum since inception which is well above the broader market.

The company follows a research-based approach and focuses on catalysts to identify undervalued growth opportunities in the Australian market which has supported very good returns for investors so far.

An interim dividend of 7.7 cents per share has been announced which is 60% franked with an ex-dividend date of 18 May 2026 and a payment date of 29 May 2026 which represents a yield of 4.45% at current stock price.

A diversified portfolio is maintained across different sectors with emphasis on mid and small cap stocks while close to 20% is held in cash which allows the company to take advantage of market corrections and crashes.

WAM Research Limited (ASX: WAX) 

has a market capitalisation of $239.7 million and stands as a very good choice among upcoming ASX dividend stocks while it has achieved solid long-term results with its portfolio which has returned 13.6% per annum since 2010 when the strategy shifted.

The company oversees around $187.9 million in assets and follows a research driven method which helps identify undervalued growth businesses across the Australian market.

A positive outlook remains because the focus on undervalued growth opportunities along with a disciplined investment approach is expected to support sustained returns and shareholder income over time.

An interim dividend of 5 cents per share has been declared which is 60% franked with an ex-dividend date of 13 May 2026 and payment set for 28 May 2026 which results in a yield of 4.35%.

Tamawood Limited (ASX: TWD) 

has a market capitalisation of $114.64 million and is a very good pick among upcoming ASX dividend stocks supported by strong earnings growth and a healthy balance sheet.

The company in H1 FY26 reported strong results where revenue increased to $66.4 million from $48.5 million in the prior corresponding period while net profit after tax rose 45.99% to $4.87 million.
This company has benefitted a lot by improved operating efficiency driven in part by the integration of AI across multiple business functions to reduce costs and enhance productivity.

An interim fully franked dividend of 11 cents has been announced with an ex-dividend date of 14 May 2026 and payment scheduled for 5 June 2026 which gives a yield of 3.81%.
The business is debt free and holds a cash balance above $10 million which supports financial flexibility and protects against downside risks.

Management is also adjusting its design and construction approach to handle possible supply constraints and regulatory pressures ahead of higher construction activity.

(Source: Company Announcements)