I like to regularly invest and build my portfolio, and a significant portion of my portfolio is ASX dividend stocks.
I'm investing in businesses that I think can generate strong total shareholder returns (TSR) – that's the combination of dividend payments and the capital growth combined.
A growing business can provide rising payments because it's the profit that funds the dividend payments, in accounting terms. A business I've recently invested in is MFF Capital Investments Ltd (ASX: MFF).
It's not the first time I've invested in this ASX dividend stock and it won't be the last. Additionally, Chris Mackay, the leader of the business, recently bought shares too. I think it's a good buy signal for us when Mackay (a very skilled investor) decides to buy MFF shares, suggesting the business is good value.
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Strong ASX dividend stock credentials
The business has a great history of strong dividend growth over the last several years. Its regular annual dividend per share has increased each year since 2018, which I think is an impressive record.
But, it's not just the fact that the dividend has been rising. It has been soaring higher.
In the last several results, it has increased its annual dividend per share by 1 cent compared to the result six months before (and a 2-cent per share increase year-over-year).
In the FY26 half-year result, MFF grew its half-year payout to 10 cents per share (a 25% increase year-over-year).
The ASX dividend stock is expecting to increase its FY26 final dividend per share to 11 cents per share, a year-over-year increase of 22%.
That means the FY26 annual dividend translates into a potential grossed-up dividend yield of 6.3% (at the time of writing), including franking credits. I think that's a great starting point for a yield and the business seems determined to continue raising the payout in the coming years.
Great set up for investment returns
MFF's main operation is acting as a listed investment company (LIC) that invests in a portfolio of high-quality, mostly international shares.
The business aims to invest in advantaged businesses that, in MFF's view, have "high probabilities of maintaining their competitive advantages and achieving above average levels of profitable growth over the medium to long term."
It usually owns these high-quality businesses for the long-term while also seeking new opportunities that it considers to be advantaged "over the long term and offer attractive investment fundamentals."
At the end of January 2026, the ASX dividend stock's largest positions included Alphabet, Mastercard, Visa, Meta Platforms, Bank of America and Amazon.
Pleasingly, over the past ten years, its post-tax net tangible assets (NTA) return (including franking credits) has been an average of 14% per year – that's a useful measure of the portfolio's investment performance.
Additionally, MFF recently acquired a fund manager called Montaka. This broadened the investment team and unlocked more research insights, reducing the key person risk of relying solely on Chris Mackay. Additionally, if Montaka's funds under management (FUM) grows, this can boost MFF's earnings.
Overall, I think this is a great dividend-paying business to own for the long-term.
