Future Generation Global Ltd (ASX: FGG) is a leading listed investment company (LIC) that could be one of the best ASX dividend stock options over the rest of the decade. I think it's a strong pick today for passive income.
I'm already a shareholder in the business and I'm planning to buy more in the coming months thanks to the size and growth of payouts, the diversification it gives my portfolio, and the philanthropic reason for its existence.
It's not a significant portion of my portfolio, but I envisage making multiple investments over the rest of the decade.
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Dividend payouts
Investors wanting ASX dividend stocks will understandably be focused on the potential passive income, so let's look at that aspect of the business first.
The job of an LIC is to generate investment returns for shareholders by investing in other shares and assets. It can then turn some of those investment profits into a dividend for that year and retain some gains for future growth and future dividend payments.
Future Generation Global regularly increases its annual dividend for shareholders. The annual payout (excluding special dividends) has progressed as follows:
- 1 cent per share in FY18
- 1.5 cents per share in FY19
- 2 cents per share in FY20
- 6 cents per share in FY21
- 7 cents per share in FY22
- 7.2 cents per share in FY23
- 7.4 cents per share in FY24
- 8 cents per share in FY25
- A guided (by the LIC) 8.4 cents per share in FY26
That means Future Generation Global will increase its payout by 40% between FY21 and FY26.
With the planned payout of 8.4 cents per share in FY26 – the 2026 financial year finishes in December 2026 – the business offers investors a very sizeable dividend yield of 5.4% excluding franking credits, and 7.7% including franking credits.
There are few businesses on the ASX that have a dividend yield that high and have increased the payout every year this decade so far.
It has a profit reserve of 66.5 cents per share, so it can fund more than seven years of dividends at the FY26 level.
Diversification
Many LICs can provide Australians with good diversification because they may be invested in dozens of shares.
Future Generation Global offers significant diversification because it's invested in the funds of 15 different fund managers. That means it's invested in 15 different portfolios, which each invest with a different strategy, give exposure to different markets, and various sizes of businesses.
Future Generation Global has less exposure to large businesses compared to the global share market, but more exposure to mid-cap businesses than the global share market. The LIC also has some exposure to (relatively) small global stocks, whereas the global benchmark (MSCI AC World Index) doesn't have any exposure.
In its September 2026 monthly update, it was clear that the portfolio is truly geographically diversified, with around half invested in North America (compared to two-thirds with the global stock market), 19.3% invested in the UK and Europe, 9.2% invested in Asia, 4.6% invested in other developed markets, 1.5% invested in emerging markets, and a 10.8% cash position (which is generating a decent return these days thanks to higher interest rates), as of 30 September 2026.
Philanthropic purpose
All of the fund managers involved in this LIC work for free so that Future Generation Global can donate 1% of its net assets each year to youth mental health charities.
Some of the charities that Future Generation Global supports, include BackTrack, Big Hart, Reach Out, Prevention United, Project Rockit, Human Nature, and Youth Opportunities.
What would a $4,000 investment create with the ASX dividend stock?
At the time of writing, the Future Generation Global share price is $1.56. Investing $4,000 would mean buying 2,564 shares.
Using the expected FY26 payout of 8.4 cents per share, the $4,000 investment could unlock $215.38 of dividend cash and $307.68 of grossed-up dividend income, including franking credits.
I'd be very happy to make that investment today, partly because it's trading at a slight 3% discount, at the time of writing, to its September 2026 net tangible assets (NTA) of $1.6055.
