I'd buy this ASX dividend stock in any market

I'm planning to buy plenty more of this ASX stock in the coming months…

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Key points

  • MFF Capital Investments Ltd (ASX: MFF) is appealing due to its strategy of increasing dividends and its substantial profit reserves, aiming for a 10-cent dividend per share in FY26.
  • The company boasts a strong global portfolio with an average annual total shareholder return of 15.9% over the last five years, investing in top-tier companies like Alphabet and Amazon.
  • MFF shares historically trade at about a 10% discount to their net tangible assets, offering an attractive buying opportunity given the quality of its underlying investments.

There are not many ASX dividend stocks that I'd be willing to buy in virtually any economic environment, whether the stock market is booming or crashing.

I firmly believe that investors should only invest in a share/fund they'd be excited to buy more of if it became cheaper.

The ASX dividend stock MFF Capital Investments Ltd (ASX: MFF) is one name that I've invested in heavily this year. In terms of my regular investing, it's the one I've invested in the most in 2025.

The business is best known for its listed investment company (LIC) activities, targeting high-quality share investments. It also has funds management operations after acquiring the Montaka business.

There are a few reasons why I'm excited to buy into it regularly, regardless of what happens next.

Rising dividends

For me, one of the most important elements of a pleasing ASX dividend stock is a rising dividend.

A growing dividend can indicate so many things. It can mean more cash hitting my bank account each year, stronger profit generation by the business and potentially a higher share price.

MFF's board of directors are aiming to provide investors with a rising dividend from the large profit reserves it has built over the years.

The business has indicated it intends to grow its half-yearly dividend to 10 cents per share in FY26, implying a potential grossed-up dividend yield of 5.9%, including franking credits, at the time of writing.

Excellent businesses delivering results

According to CMC Markets, MFF Capital has delivered total shareholder returns of an average of 15.9% per year over the prior five years.

Past performance is not a guarantee of future returns, but I'm optimistic the ASX dividend stock can deliver strong returns in the coming years because of its focus on quality, growing businesses.

MFF has built a global portfolio of some of the leading businesses around the world such as Alphabet, Mastercard, Visa, Meta Platforms, Amazon, Microsoft, Prosus and Home Depot.

One of the reasons I like owning this business is its investment flexibility to invest in huge companies or much smaller ones, in any market. For example, it recently invested in L1 Group Ltd (ASX: L1G), which is a compelling ASX business in the funds management space, but a lot smaller than the US tech giants.

Compelling discount

One of the reasons why I'm always willing to buy MFF shares is that the ASX dividend stock has a history of trading at a discount to its underlying value.

The MFF portfolio represents a basket of great stocks and that basket has an underlying value. The business regularly tells investors about its net tangible assets (NTA), which the MFF share price generally moves with (positively or negatively, as the portfolio value changes).

In recent times, the MFF share price has traded at a discount of around 10% to its pre-tax NTA, which I think is an appealing discount considering its long-term performance.

Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Home Depot, Mastercard, Meta Platforms, Microsoft, and Visa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Meta Platforms, Mff Capital Investments, Microsoft, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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