ASX dividend shares with a large dividend yield could be a great buy because of the strong cash flow they can give for our bank accounts.
With inflation and interest rates seemingly on the rise, I think investors may be looking for names that can beat what interest rates bank savings accounts are likely to provide.
I want to highlight two ASX dividend shares that have never given their shareholders a dividend reduction, have a good track record of dividend increases, and have an incredible dividend yield.
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WCM Global Growth Ltd (ASX: WQG)
WCM Global Growth is a listed investment company (LIC) that's managed by WCM, which is based in Laguna Beach, California. It's deliberately based a long way away from Wall Street (in New York).
This LIC targets a global portfolio of shares, which I think is a good strategy because there are thousands of opportunities to choose from.
WCM has whittled down its portfolio to just 20 to 40 stocks from that global hunting ground.
There are two factors that WCM wants to see particularly – improving economic moats and a corporate culture that supports the strengthening of those competitive advantages.
This strategy has allowed the ASX dividend share's portfolio to deliver a net return that's stronger than the global share market over the past year, three years and since the LIC's inception in June 2017.
WCM Global growth's net portfolio return has been an average of 15.8% per year since inception, allowing it to pay a growing dividend each year since it started paying one in 2019. Of course, past investment returns are not a guarantee of future returns.
The business has provided guidance that its quarterly dividend will continue growing every quarter until March 2027.
At the time of writing and according to guidance, the next four quarterly dividends to be declared will come to a grossed-up dividend yield of just over 8%, including franking credits.
WAM Microcap Ltd (ASX: WMI)
It's my view that ASX small-cap shares are some of the most exciting investments to own because of their large growth potential and how early on in their growth journey we can invest in them.
For example, imagine there's a business that now makes $100 million in revenue. Wouldn't it have been great to have bought it when it was making just $10 million in revenue? We could look forward to owning it as it multiplied its sales by ten times.
Not every business is destined to grow 10x from its current scale, which is why I think it could be smart to leave the investing to a seasoned team of small-cap fund managers working full-time that have performed very well over the long-term.
Between inception in June 2017 to February 2026, the WAM Microcap portfolio has returned an average of 15.4% per year (before fees, expenses and taxes), outperforming the small-cap benchmark by 7% per year in that time.
That strength has allowed the ASX dividend share to increase its annual payout every year except FY24, going back to FY18 when it started paying a dividend.
Recent dividend increases have been small, but I think any growth is very appealing given it has such a large dividend yield. At the time of writing, the FY26 grossed-up dividend yield is guided to be around 10.2%, including franking credits.
