2 high-yielding ASX dividend shares

The two ASX shares in this article have high trailing dividend yields. One of them is fund manager Pengana Capital Group Ltd (ASX:PCG).

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A handful of Australian $100 notes, indicating a cash position

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There are some ASX dividend shares that have high trailing dividend yields.

Some businesses don’t pay any dividend at all, such as Xero Limited (ASX: XRO) and A2 Milk Company Ltd (ASX: A2M).

However, there are others that have relatively high dividend yields:

Pengana Capital Group Ltd (ASX: PCG)

Pengana is a funds management business. It operates a number of different investment strategies including Australian small caps, a multi-cap ASX strategy, global small caps, global multi caps, global private equity, sustainable investing and so on.

Over the last 12 months Pengana has paid dividends totalling $0.09 per share. That translates to a trailing grossed-up dividend yield of 7.6%.

The funds under management (FUM) increased by 15% during the six months to 31 December 2020, ending at $3.59 billion. This was predominately thanks to investment performance adding $463 million to the FUM total.

Pengana’s FUM has steadily climbed during the second half of FY21. At the end of April 2021, it had risen to $3.77 billion.

The ASX share explains that growth of its Australian FUM is limited due to market dynamics and capacity constraints. An aim over the last few years has been to increase its exposure to international investing. At the end of FY17 international FUM made up 32% of the total, at the end of December 2020 it was 53%.

Pengana said that there’s “significant” further capacity in various international equity strategies, including Pengana Equity Trust Pvt (ASX: PE1).

The fund manager also said that it has an opportunity to diversify further over time by adding new strategies.

Pacific Current Group Ltd (ASX: PAC)

Pacific Current is a business that takes investment stakes in global fund managers to help them grow with capital and expertise.

Over the last 12 months, Pacific Current has paid dividends totalling $0.35 per share. That translates to a grossed-up dividend yield of around 9.1%.

The ASX share has a portfolio of around 15 names. Some of its investments include Aether Investment Partners, Astarte Capital Partners, Carlisle Management, GQG Partners, Proterra Investment Partners and Victory Park Capital.

In the quarter ending 31 March 2021, Pacific saw FUM controlled by boutique asset managers increase by 8.9%. Including the new investment in Astarte Capital Partners, total FUM increased 9.3%.

During the latest quarter, Pacific saw “strong” inflows across the portfolio including GQG, ROC, Carlisle, Proterra and Victory Park.

The Pacific Current CEO, Paul Greenwood, said:

While GQG continued to post large FUM gains, we were again encouraged by the breadth of growth across the portfolio. As we emerge from the pandemic it appears that many of our portfolio companies are very well positioned to grow, and as a result we expect continued capital raising success in 2021 and 2022.

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Tristan Harrison owns shares of PACCURRENT FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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