I think it makes a lot of sense to invest in ASX dividend shares right now. The Reserve Bank of Australia (RBA) has already cut the official cash rate in Australia twice and there are predictions there could be further cuts over the next 12 months.
Despite that, I'm still seeing some businesses trading at prices that look too good to ignore. In this article, I'll highlight two businesses that are compelling to me and I'd happily allocate $5,000 towards them.
The appeal of these businesses relates to both the yield they offer and the great price they're trading at. So, let's get into two great ASX dividend shares worth buying today.
MFF Capital Investments Ltd (ASX: MFF)
This business is best known for its large investment portfolio of international shares through a listed investment company (LIC) structure, though it also has a small funds management business.
Some of the ASX dividend share's biggest holdings include Alphabet, Mastercard, Visa, Amazon, American Express, Bank of America, Meta Platforms, Microsoft and Home Depot. I think it's great to invest in these sorts of global winners for diversification.
The business is focused on high-quality businesses with competitive advantages that could deliver strong returns over the long-term. Past performance is not a guarantee of future performance, but I think good returns can continue from the existing and future investments.
MFF is able to pay a growing dividend from the investment gains its portfolio has made. Its portfolio started an annual dividend growth streak in 2018 and has increased every year since.
It's expecting to pay a dividend per share of 16 cents in FY25, which translates into a grossed-up dividend yield of 5.3%, including franking credits.
Plus, the business is trading at a 12% discount to its pre-tax net tangible assets (NTA) of $4.87 as at 13 June 2025.
Rural Funds Group (ASX: RFF)
The other business I want to highlight is a real estate investment trust (REIT) called Rural Funds. It owns a variety of farm types including cattle, almonds, vineyards and macadamias which are leased to quality tenants.
It's one of my favourite ideas right now because of how much the ASX dividend share could benefit from rate cuts.
Firstly, a rate cut could reduce the interest costs for the business. As a property-owning business, it has a sizeable amount of debt on its balance sheet. This would help improve the rental profits of the business.
Second, rate cuts can help increase the value of Rural Funds' properties. This could significantly boost the underlying value of the business.
Finally, the business is currently trading at a discount of more than 40% to its adjusted net asset value (NAV) of $3.10 as of 31 December 2024. I think the discount could reduce by the market if rate cuts continue occurring.
That large discount means the business has a pleasing distribution yield. It's expecting to pay a distribution yield of 6.4% in FY26.
