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With share markets experiencing significant fluctuations recently, investors may find opportunities in dividend shares that offer steady income and resilience. Here are two ASX dividend shares to consider this August, especially if market dips have led to more attractive yields.
Washington H. Soul Pattinson & Co. Ltd (ASX:SOL)
Washington H. Soul Pattinson, known as Soul Patts, is a longstanding entity on the ASX, with a history spanning over a century. Originally starting as a pharmacy business, Soul Patts has expanded its interests over the years into various sectors, including building products, resources, and telecommunications.
Today, Soul Patts holds stakes in prominent ASX-listed companies such as Brickworks Limited (ASX:BKW), TPG Telecom Ltd (ASX:TPG), New Hope Corporation Ltd (ASX:NHC), BHP Group Ltd (ASX:BHP), Commonwealth Bank of Australia (ASX:CBA), Wesfarmers Ltd (ASX:WES), and Macquarie Group Ltd (ASX:MQG). Its portfolio also includes non-ASX investments in swimming schools, credit and bonds, agricultural assets, property, and private businesses.
The company has a strong track record of growing its dividend payout annually for the past 24 years. Currently, it offers a dividend yield of 3.8%, including franking credits, and its robust portfolio suggests that the dividend could continue to grow in the future.
MFF Capital Investments Ltd (ASX:MFF)
MFF Capital Investments is a listed investment company (LIC) focusing on international shares. Managed by Chris Mackay, a co-founder of Magellan Financial Group Ltd (ASX:MFG), MFF Capital's portfolio features globally recognized companies such as Alphabet, Amazon, Mastercard, Visa, American Express, Bank of America, Meta Platforms, and Microsoft.
While MFF's investments are heavily weighted towards US businesses, many of these companies have substantial revenue streams from international markets, providing good diversification.
MFF Capital has increased its annual ordinary dividend each year since 2018. For the period ending 31 December 2024, the company plans to raise its semi-annual dividend to $0.08 per share. This equates to an annualized dividend of $0.16 per share, translating to a yield of 6.1% based on the current share price. Additionally, MFF Capital's shares are trading at a discount of around 10% to their pre-tax net tangible assets (NTA), suggesting potential value.
It’s worth noting that external factors, such as upcoming US elections, could introduce some volatility, but the strong dividend yield and investment strategy make MFF Capital an intriguing option.
Washington H. Soul Pattinson & Co. Ltd and MFF Capital Investments Ltd offer attractive dividend yields and demonstrate strong track records in dividend growth, making them potential considerations for those seeking income and stability in the current market environment.
