2 hidden-gem ASX dividend shares to buy for long-term income

Here's why I would buy Metcash Ltd (ASX: MTS) and one other ASX dividend share for long-term income.

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With the S&P/ASX 200 Index (ASX: XJO) flirting with the gain/loss line today, it seems many investors are looking to pile back into ASX shares after last week's volatility – at least they were until lunchtime.

I'm still on the lookout for ASX dividend shares in this current market – valuations remain relatively low, meaning dividend yields are still relatively high.

So, here are two 'hidden gem' ASX dividend shares that I think are top value today.

Metcash Ltd (ASX: MTS)

Metcash and its IGA chain of grocers haven't been receiving the same level of media coverage as its bigger siblings Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) in the ASX grocery sector as the coronavirus-induced spike in demand for essential household supplies continues.

Despite this, I think Metcash is a solid buy today for dividend income. On current prices, this company is offering a trailing dividend yield of 4.14% – which grosses up to 5.91% with full franking credits. In addition to IGA and Foodland, the company also owns the Mitre 10 and Home Timber & Hardware stores as well as the Bottle-O and Cellarbrations bottle shop chains.

Thus, I think Metcash is a well-rounded consumer staples company I would feel very comfortable with having in a dividend-focused portfolio.

WAM Global Ltd (ASX: WGB)

WAM Global is a listed investment company (LIC) that focuses on finding undervalued growth companies around the world. It only listed in 2018 but since then, has developed a strong track record.

WAM Global has also commenced paying dividends, which come fully franked. This company's current portfolio is weighted heavily towards the United States, but also has exposure to Germany, Japan, France and the UK.

WAM Global has recently caught my attention once again because of the wide gap that has opened up between the LIC's net tangible assets (NTA) and the company's share price. As of February 29, WAM Global had $515.2 million of assets (shares and cash) but was only valued at $461.3 million by the market. That equates to a value of $2.42 per share compared with today's share price of $1.67.

On these prices, WAM Global offers a trailing dividend yield of 2.99% (or 4.27% grossed-up) based on its last interim dividend of 3 cents per share. Since the company has a profit reserve of 19.6 cents per share, I think this is a great long-term ASX dividend share for any dividend growth portfolio.

Motley Fool contributor Sebastian Bowen owns shares of WAMGLOBAL FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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