ASX dividend shares are capable of paying big dividend yields. Some investors may be looking for regular payments, so I'm going to talk about two stocks that pay every quarter.
Term deposits are a safe form of investment, protecting us from capital losses, but they lack the potential of capital gains, and we have to wait a long time for an annual payout.
I think the stocks below have the potential to deliver great quarterly income and good growth, particularly when interest rates start to be cut.
Charter Hall Long WALE REIT (ASX: CLW)
This real estate investment trust (REIT) owns a variety of properties, including pubs and bottle shops, telecommunication exchanges, service stations, grocery and distribution, food manufacturing, Bunnings properties and so on.
In the first half of FY24, its weighted average lease expiry (WALE) was 10.8 years, giving it long-term income security. It also had an occupancy rate of 99.9%, which means the property portfolio is generating almost as much rental income as it possibly can.
The ASX dividend share has rental increases built into its contracts, with just over half linked to CPI inflation and the rest having a fixed annual increase.
It's currently paying a quarterly dividend of 6.5 cents per share and expects to pay a distribution per security of 26 cents for FY24, which is a distribution yield of 7%.
GQG Partners Inc (ASX: GQG)
GQG is one of the biggest fund managers listed on the ASX. It recently reported its funds under management (FUM) had reached US$137.5 billion at the end of February 2024. This was up from US$120.6 billion at December 2023, and significantly more than the average FUM of US$101.9 billion during 2023.
The ASX dividend share has committed to a dividend payout ratio of 90% of distributable earnings.
Its funds' impressive performance and ongoing inflows – US$3 billion of net inflows in the first two months of 2024 – give me belief that the company can deliver dividend growth in 2024 and beyond.
The business is paying a dividend every quarter. In 2024, the Commsec projection is that it could pay a dividend per share of 18.2 cents, which is a forward dividend yield of 8.25%.
