I'm always on the lookout for ASX shares that could boost my portfolio returns and passive income.
I feel fortunate to be able to regularly invest money into the share market, and I recently put $3,000 to work into more stocks.
The three names I bought were: MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG) and L1 Long Short Fund Ltd (ASX: LSF).
All three of my new investments have similar positive attributes, which I'll get into below.
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Effective investment strategies
All three of these ASX shares are listed investment companies (LICs). In other words, they invest in other shares and assets on behalf of shareholders.
They each have their own investment strategy, and they have all performed strongly over the long-term.
MFF aims for high-quality global shares with strong competitive advantages and an above-average ability to grow earnings.
The L1 LIC invests in a mixture of ASX shares and global shares that are priced cheaply with good earnings growth potential.
WCM Global Growth invests in businesses with improving competitive advantages and a corporate culture that supports that economic moat improvement.
Each of them have managed to deliver double-digit portfolio returns over the long-term, helping fund good dividends and a rising share price (thanks to their growing retained earnings).
Rising dividends
I believe the best ASX dividend shares can provide shareholders with consistent dividend growth.
It's good to be able to offset (or outpace) inflation. Rising dividends also allow us to feel wealthier, with more cash flowing through our bank accounts. The dividends can be reinvested or spent on our lives for essentials or to fund discretionary spending.
All three ASX shares I recently invested in – MFF, WCM Global Growth and L1 Long Short Fund – have all recently increased their dividends by more than 10% year-over-year.
It's not guaranteed that these businesses will continue to grow their dividends by more than 10% in the next financial year. It's possible they may not even grow the dividend. But, of all of the businesses on the ASX, these are three of the ASX shares I'm most confident will deliver a rising dividend to shareholders.
With their profit reserves and impressive investment returns, I believe they'll be able to continue hiking their payouts at a good pace for the next few years.
Good dividend yields
All three of these ASX shares have compelling dividend yields and could continue to grow their payouts from here, unlocking an even greater dividend yield in time.
I estimate that in FY27, the ASX shares could provide grossed-up dividend yields (including franking credits) of more than 5%. At the time of writing, MFF could offer a grossed-up dividend yield of 6.9%, WCM Global Growth could have a grossed-up dividend yield of 7% and L1 Global Short Fund could provide a grossed-up dividend yield of 5.1%.
I believe all of these stocks could outperform the S&P/ASX 200 Index (ASX: XJO) and deliver stronger dividend income. But, these aren't the only ASX shares I have my eyes on for July.
