One of the great things about the ASX share market is that we can find a variety of investments, whether that's ASX growth shares or ASX income stocks.

Businesses can decide what to do with the profit and cash flow they generate each year. Some of them are providing pleasing levels of passive income.

The two businesses I will discuss below already have yields above 7%. It's important to consider how a high-yield ASX income stock can grow its earnings – it's not just about the payout. I'd like to see the earnings and underlying value growing, too. Here's why I like the businesses below.

HomeCo Daily Needs REIT (ASX: HDN)

This business is a real estate investment trust (REIT) that invests in neighbourhood retail shopping centres, large-format retail, health care, and services. Its total assets are worth around $5 billion in the growth corridors of Sydney, Melbourne, Brisbane, Perth, and Adelaide.

It's expanding its portfolio through acquisitions and developments, focusing on assets that can provide resilient cash flow.

The ASX income stock is benefiting from an occupancy rate of more than 99%, maximising the rental potential of the assets.

In the first half of FY25, the REIT reported achieving 4% comparable property net operating income (NOI) growth, which suggests pleasing organic rental profit growth.

It expects to pay a distribution of 8.5 cents per unit in FY25, implying that the business is currently trading on an FY25 distribution yield of 7.3%.

Universal Store Holdings Ltd (ASX: UNI)

This business owns a portfolio of youth fashion brands sold through stores and wholesale – Universal Store, Perfect Stranger and CTC (with the THRILLS and Worship brands).

The ASX income stock has 109 physical stores across Australia, aimed at 16 to 35-year-old fashion-focused customers who want on-trend apparel products.

I've been impressed by how the company has expanded its store network and steadily grown its annual dividend per share since 2021.

The latest two dividends declared by the business amount to a grossed-up dividend yield of 7.3%, including franking credits.

In the FY25 half-year result, the business grew total sales by 16.1% and increased underlying net profit after tax (NPAT) by 16% to $23.2 million. This helped the company hike its interim dividend by 33.3% to 22 cents per share.

Further growth looks likely over the rest of FY25, with solid sales growth and the potential for further operating leverage.