The lower share prices we're seeing in March 2026 means opportunities galore for investors who want to buy businesses at cheaper prices, including ASX dividend shares.
I don't know how long the market will be feeling pessimistic about the Middle East and oil price situation – it could be days, weeks or even longer. Time will tell.
I prefer to buy at a better valuation while the opportunity is there, which is why I decided to pounce on the following ASX dividend at the start of this week.
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MFF Capital Investments Ltd (ASX: MFF)
MFF is one of the larger listed investment companies (LICs) on the ASX, with a focus on quality international companies with above-average capabilities to compound earnings at a good speed over time. I don't usually invest in international shares directly, so I like using this as a dividend-paying option to get that exposure.
I think the MFF investment strategy has been very effective, as demonstrated by the fact that MFF has delivered an average total shareholder return (TSR) of 15.3% per year over the last five years, according to CMC Invest. Of course, past performance is not a guarantee of future performance.
One of the advantages of the LIC investment structure is that the board of directors have control over what size dividend they want to declare. The business is currently increasing its half-year payout by 1 cent per share every six months.
MFF plans to pay an annual dividend per share of 21 cents in FY26, which translates into a forward grossed-up dividend yield of 6.5%, including franking credits, at the time of writing.
I thought the dip in the MFF share price was appealing, offering better underlying value and a stronger dividend yield.
I expect the ASX dividend share to continue increasing its payout over time and owning high-quality businesses to help deliver capital growth.
L1 Long Short Fund Ltd (ASX: LSF)
This is another LIC, which invests in a mixture of ASX shares and international shares, utilising a mixture of investing for the long-term and short selling.
I like how it has a track record of producing investment returns primarily through resource shares, industrial shares and communication shares. There are various ways to produce good returns, including in cyclical shares.
L1 likes to look at businesses that have lower price/earnings (P/E) ratios, which I think other investors may sometimes overlook. Under-researched and unloved ASX shares can be a smart choice to deliver good returns.
In the last five years, the ASX dividend share has returned a total shareholder return average of 16.5% per year over the last five years, according to CMC Invest. Again, past performance is not a guarantee of future performance.
Pleasingly, the LIC has been steadily increasing its payout each year since 2021 and its latest two quarterly dividends for the FY26 half-year period was 13.6% higher than the FY25 half-year dividend. It currently has an annualised grossed-up dividend yield of 5.25%, including franking credits, at the time of writing.
I'm expecting the ASX dividend share to continue increasing its payout thanks to the large profit reserve it has built and the investment strategy it's using.
