The Australian dividend stock MFF Capital Investments Ltd (ASX: MFF) could be a top buy for investors at almost any time.
It's best known for being a listed investment company (LIC), but it also has a funds management operating business under the MFF umbrella following the acquisition of Montaka.
This company is listed in Australia, though its investment strategy typically looks at international shares to find the most compelling ideas.
Let's take a look at why the business is such an appealing buy now and probably in any market.
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Strong dividend outlook
MFF has increased its ordinary annual dividend every year over the last several years and this dividend growth record is expected to continue into the 2026 financial year.
The Australian dividend stock recently held its annual general meeting (AGM) for shareholders where the leadership revealed some intentions about the dividend.
MFF intends to increase the rate of the six-monthly dividend to 10 cents per share for the period ending 31 December 2025. If we conservatively pencil in a full-year dividend per share of 20 cents per share in FY26, that translates into a grossed-up dividend yield of 6.2%, including franking credits.
I think it's likely the business can continue steadily growing its dividend in the coming years thanks to its large profit reserve and franking credits. Dividends are paid from generated profits by the business.
Excellent portfolio
MFF aims to compound capital, avoid permanent capital loss and continue to prudently increase the fully franked dividend payments.
It targets margins of safety with investments and objectively attractive probabilities for success. MFF wants the strongest, best businesses in the world. Meaning, it wants to find above-average businesses with sustainable profitable growth.
Its portfolio companies have benefited from adding profitable adjacencies (new products and service) and strengthening customer satisfaction and profits, as well as network effects.
Some of the Australian dividend stock's largest holdings are high-quality names such as Mastercard, Visa, Alphabet, Meta Platforms, Amazon and Microsoft. It also has investments from different sectors such as Bank of America, American Express, Home Depot and United Health.
Past performance is not a guarantee of future performance, but I'm optimistic the MFF portfolio can continue delivering strong returns thanks to the underlying quality of the companies.
Investment flexibility for the Australian dividend stock
A key reason why I'd be willing to invest in this Australian dividend stock is because of its investment flexibility to invest in any shares around the world. The global share market is a large place and home to a wide range of opportunities.
By being able to buy when there's value and sell when businesses become overvalued, MFF can always have a portfolio that it's optimistic about.
Plus, it can search across the asset spectrum for ideas, giving it a high chance of producing very satisfactory returns.
In five years, I think there could be some new names in the portfolio, and that could help the future returns, ensuring this investment is continuously attractive.
