The ASX dividend stock MFF Capital Investments Ltd (ASX: MFF) was one of my latest investments for a few different reasons. I'm bullish about the business and plan to buy plenty more of it in the future.
Most of the value created by the business has come from its internationally-focused portfolio of global stocks.
Some of its largest holdings include Mastercard, Bank of America, Visa, American Express, Alphabet, Meta Platforms, Amazon, Home Depot, United Health and Microsoft.
Its portfolio has performed well for MFF, enabling it to produce total shareholder returns of an average of 17.2% per year over the last five years and 13% per year over the last 10 years, according to CMC Markets.
Let's take a look at what makes it appealing as an ASX dividend stock.
Dividend yield
The business has a very pleasing dividend yield and is expecting to pay an even larger one in FY26.
In FY25, the business delivered shareholders an annual dividend per share of 17 cents per share, translating into a grossed-up dividend yield of approximately 5%, including franking credits, at the time of writing.
The board of directors has indicated it intends the next half-year dividend to be 10 cents per share. Assuming that were to be repeated for the final dividend, the FY26 grossed-up dividend yield could be 6%, including franking credits, at the time of writing.
If I'm buying an investment for passive income, I want to see a sizeable cash payout that's worthwhile and MFF looks like it will tick the box.
Sustainable dividend growth
Over time, I'd like to see a good investment deliver rising dividend cash payments.
But, the dividend yield can't be too high or else it may not be affordable for the company. With a grossed-up dividend yield of 6%, that's not too much of a return hurdle (6%-ish) for the company to deliver investment returns of that size to ensure dividend payments and capital growth.
The MFF half-yearly dividend per share has grown from 1 cent per share in 2017 to 9 cents in 2025.
I'm hopeful the ASX dividend stock's can continue to grow over the long term because of the investment returns the business is delivering, as well as its ownership of the funds management business, Montaka.
Capital growth
MFF's portfolio returns have been materially stronger than the dividend payments over the years, allowing the MFF share price to rise over time.
Of course, past performance is not a guarantee of future performance for the ASX dividend stock. But, at the time of writing, the last year shows a rise of around 20% for the MFF share price, while the last five years show a rise of 80%.
I'm optimistic the ASX dividend stock can deliver passive income and capital growth in the coming years.
