The ASX share market is always providing us with opportunities to consider. A large portion of my portfolio is focused on ASX dividend shares, and there are two names I'm planning to put money towards during June 2026.
I want to find investments that can provide a satisfactory level of passive income, payout growth and capital growth. I can use those dividends for my own life expenditure, or re-invest the dividends. Plus, long-term growth can help me become wealthier.
In the coming weeks, I'm planning to invest in the following two businesses.
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MFF Capital Investments Ltd (ASX: MFF)
This business is best known as a listed investment company (LIC), led by portfolio manager Chris Mackay.
MFF likes to invest in a portfolio of global shares that have a combination of quality and value, while having the potential for self-reinforcing growth. It says it owns around 25 of the best listed businesses in the world.
Some of those holdings include Alphabet, Amazon, Mastercard and Visa.
By investing in businesses with excellent growth compounding potential, MFF has delivered excellent returns. Impressively, the ASX dividend share has delivered an average total shareholder return (TSR) of 15.2% per year over the prior five years, according to CMC Invest.
That return – which I think is a decent measure of portfolio performance – helps fund a higher dividend and supports MFF share price growth. The MFF share price has risen by 80% in the last five years, though past performance is not a guarantee of future performance, of course.
The ASX dividend share has increased its regular annual dividend per share each year since 2018 and it expects to increase its annual dividend per share to 21 cents per share for FY26. That translates into a grossed-up dividend yield of 6.1%, including franking credits.
L1 Long Short Fund Ltd (ASX: LSF)
The other ASX dividend share I'm considering is this LIC operated by L1 Group Ltd (ASX: L1G). I may decide to split any investing I do this month between the two names I'm highlighting in this article.
I like how the investment strategy includes investing in ASX shares and global shares, with both long-term buys and short-selling. This gives the LIC a wide range of opportunities to look at, with a particular focus on businesses with lower price/earnings (P/E) ratios, double-digit earnings per share (EPS) and modest debt levels.
The ASX dividend share's portfolio has delivered an average net return per year of 16.3% over the prior five years, which is a great level of return to fund rising dividends. It has increased its annual dividend each year since 2021. The current trend of its quarterly dividend suggests the next year of dividends could equate to a grossed-up dividend yield of 5.2%, including franking credits, at the time of writing.
With a progressive dividend policy and good portfolio returns, the LIC has a very positive future, in my view.
