I regularly like to invest in ASX shares that can offer solid long-term returns. Sometimes my investing is aimed at ASX growth shares, and sometimes I choose ASX dividend shares.
I like the cash flow provided by ASX dividend shares, particularly ones with regularly growing dividends or ones with (resilient) high yields.
In this article, I'm going to cover two ASX shares I recently bought, one with a high yield and one with a regularly-growing payout.
Metcash Ltd (ASX: MTS)
Metcash supplies food to IGA supermarkets and liquor to a large number of retailers including Thirsty Camel, Big Bargain Bottleshop, Duncans, Cellarbrations, The Bottle-O, IGA Liquor and Porters Liquor. It also has a hardware division which includes Mitre 10, Home Timber & Hardware and Total Tools.
The business is currently raising capital to pay for some acquisitions, which I like the look of.
I like the businesses it's buying with the cash. One acquisition is Superior Food, a business to business (B2B) food supply company, which is a "logical extension" of the ASX share's food strategy. Food service is described as a large and growing market.
Metcash is also buying Bianco Construction Supplies, a construction and industrial supplies business servicing the South Australia and Northern Territory trade market.
The final business it's buying is Alpine Truss, one of the largest frame and truss operators in Australia.
I decided to take part in the capital raising to increase my holding at a price I liked, which is $3.35 per share, a 10% discount to the current Metcash share price. At this level, the FY24 forecast dividend per share (on Commsec) translates into a grossed-up dividend yield of 8.6%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
I like to regularly invest in Soul Pattinson shares. It offers diversification with a portfolio across a number of different sectors including telecommunications, resources, financial services, agriculture, swimming schools, property, bonds/credit and many more.
The ASX share uses the investment cash flow it receives to pay a growing dividend to investors. It has increased its annual ordinary dividend every year since 2000.
It's steadily investing its excess cash flow into more investment opportunities, which can help the cash flow, portfolio value and dividends of Soul Pattinson in the future.
I like this one a lot because it's steadily building the underlying value, which is helping my wealth.
