I like to regularly invest in ASX dividend shares to grow my portfolio in names I believe offer growth and passive income.
Superannuation is great for retirement investing, but I'm investing significantly outside of super to build up a flow of dividends to add to my near-term income.
The recent ASX share market volatility has led to share prices falling, dividend yields rising and more attractive opportunities. That's what attracted me to the following businesses with a $2,000 investment earlier this week.
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MFF Capital Investments Ltd (ASX: MFF)
MFF is best-known for its listed investment company (LIC) activities because it runs a multi-billion dollar portfolio that is mostly invested in high-quality international shares that have above-average earnings growth prospects and good competitive advantages.
It's invested in a number of leading global blue-chips, which has helped it to produce strong investment returns with the portfolio, leading to good capital growth (and dividend payments) in the past decade.
Recent investments include alternative investment/private equity managers, as well as ASX-listed investments L1 Group Ltd (ASX: L1G) and Montaka Global Fund (ASX: MOGL).
One of MFF's goals is to increase the dividend, which it has delivered over the past several years. I like how rapidly the business is growing the dividend – the guided FY26 annual payout is expected to grow by 23% year-over-year to 21 cents per share.
At the time of writing, that translates into a FY26 grossed-up dividend yield of 6.4%, including franking credits, from the ASX dividend share.
WCM Global Growth Ltd (ASX: WQG)
The other investment I made was another LIC, which also has a goal of regularly growing the dividend.
It's run by fund manager WCM which is based in Laguna Beach, California. That's a far cry from Wall Street, which allows the fund manager to invest somewhat differently to the market.
The fund manager invests in in businesses with growing economic moats (competitive advantages) and a corporate culture that supports the improvement of the economic moat.
WCM Global Growth's portfolio has returned an average of 14.7% per year since inception in June 2017, outperforming the global share market by an average of more than 2% per year.
It's increasing its quarterly dividend every quarter, which is a pleasing record to see during a time of higher inflation.
The ASX dividend share is expected to pay a quarterly dividend per share of 2.45 cents in March 2026, which would be an annualised grossed-up dividend yield of 8%, including franking credits.
