I'm always on the lookout for ASX stocks that can deliver excellent passive income over the long-term. I'm particularly drawn to the ASX dividend share WCM Global Growth Ltd (ASX: WQG) right now because of its dividend credentials.
Listed investment companies (LICs) are a very compelling structure for passive income because of their ability to generate positive investment returns and translate that into accounting profits which can be used to pay regular dividends even if there's a rough year for the share market.
For multiple reasons, I believe that WCM Global Growth is one of the best reasons for strong income in the months and years, particularly for investors aiming for $300 per month or more of dividends.
Image source: Getty Images
Great dividend credentials
For me, one of the most important elements of a great ASX dividend share is dividend growth. That shows things are going well for the business over the long-term and it's steadily rewarding us with bigger cash payments.
The business has steadily increased its annual dividend per share each year since FY19. It recently switched to paying its dividend quarterly, and has increased its payout each quarter in the last three years.
It really ticks the box for passive dividend income growth, in my view.
The business also has a very large dividend yield. The next four dividends it plans to declare amount to a grossed-up dividend yield of 7.3%, including franking credits, at the time of writing.
It has managed to deliver such a strong dividend to investors thanks to its investment performance by targeting international companies with strengthening economic moats and a business ethos that helps support improvements of those competitive advantages.
Over the past three years, its portfolio has returned an average of 22% per year, beating the global share market index by an average of more than 3% per year.
Some of its largest holdings right now include Western Digital, Taiwan Semiconductor, Applovin, Amazon and Rolls Royce.
One of the main reasons why I think this is such an appealing time to invest is because it's valued at a 7.5% discount to its latest weekly net tangible assets (NTA) per share, at the time of writing. I think buying a great business at a discount is very compelling.
Passive income goal
To reach $300 per month, we're talking about an annual goal of $3,600 of dividends.
Over the next 12 months, I expect the business to declare quarterly dividends amounting to 9.59 cents per share. With that expected level of passive income, an investor would need 37,540 WCM Global Growth shares excluding franking credits, or 26,278 shares including the franking credits.
I'm slowly but steadily building my own position in this ASX stock. I recently bought shares, though I'm still a long way off receiving $3,600 of dividends per year from it.
I think it's a good time to invest, but it's not the only ASX share I'd look to buy right now.
