I'm always on the lookout for high-quality ASX dividend shares for my portfolio. I like the combination of dividends and long-term capital growth.
When my finances allow, I like to invest some money into my portfolio each month.
I made my latest investments earlier this week so I thought I'd share which ASX stocks I decided to purchase.
I didn't invest as much as $10,000. But, if I were given that amount to invest for passive income, I'd pick the same names and one more.
Let's get into it.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Anyone that has read my articles for long enough will know that this investment conglomerate is one of my favourites for the long-term.
There are some sizeable uncertainties in the global economy right now, including the inflation outlook and AI (both the vast capital expenditure and the possible effects on the labour market). I'd say Soul Patts is one of the best S&P/ASX 200 Index (ASX: XJO) share options to ride out whatever happens next.
The business regularly adds to its portfolio and I think its investment strategy will help deliver pleasing compounding over time. Its exposure to nuclear energy through Nexgen Energy (Canada) CDI (ASX: NXG) looks like a smart move, while the acquisition of Brickworks added an excellent industrial property portfolio.
When I bought more of this ASX dividend share, the share price had dropped approximately 20% from September, making it look like a good opportunity to invest. This decline has pushed up the grossed-up dividend yield to 4.1%, including franking credits, at the time of writing.
The fact it has increased its annual dividend per share every year since 1998 is a very pleasing record of reliability.
MFF Capital Investments Ltd (ASX: MFF)
MFF is another investment business that features prominently in my portfolio because of the assets it owns and its dividend growth outlook.
The company's key method of generating returns for investors is its high-quality portfolio of predominantly international shares. By looking across the global share market for opportunities, MFF is able to find quality compounders that can deliver excellent long-term returns.
There's no guarantee the ASX dividend share will be able to deliver ongoing total shareholder returns in the mid-teens, as it has done over the last five years. But, I believe the portfolio has a very promising future.
If MFF is able to assist the recently-acquired funds management business Montaka to become a sizeable player in the investment world, then that would be a very pleasing bonus for the company.
The ASX dividend share has increased its annual ordinary payout each year over the last several years and its guidance for FY26 translates into a grossed-up dividend yield of 5.7%, including franking credits, at the time of writing.
Rural Funds Group (ASX: RFF)
A business I didn't invest in this week was Rural Funds, but I think it'd be a great addition to an ASX dividend share portfolio if I were investing $10,000 across three names.
Rural Funds is a leading real estate investment trust (REIT) that owns farmland across Australia. I think it's a good move to own a diversified portfolio when it comes to sources of income and leasing to agricultural tenants seems like a pleasing move.
The ASX dividend share is invested across cattle, almonds, macadamias, cropping and vineyards.
It pays a pleasingly consistent distribution every quarter, giving investors regular cash flow.
Rural Funds is benefiting from built-in rental indexation with its farms, which are either fixed annual increases or linked to inflation. This is a very useful tailwind for rental profits over time, in my opinion.
The business plans to pay an annual distribution of 11.73 cents per unit in FY26, translating into a forward distribution of 5.8%. After multiple RBA rate cuts this year, I think that's a solid starting distribution yield.
