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Investors seeking a blend of stable passive income and long-term capital growth might find opportunities among certain ASX dividend shares. While traditional sectors like banks and miners offer dividends, their volatility and challenging environments can make stability elusive. For those looking for a combination of steady returns and growth potential, consider these two ASX dividend shares:
WCM Global Growth Ltd (ASX:WQG)
WCM Global Growth Ltd is a listed investment company (LIC) that focuses on global equities. The LIC targets companies with strong economic moats—competitive advantages that help them maintain profitability and market share. These moats can take various forms, such as cost advantages, brand power, or intellectual property.
Since its inception in June 2017, WCM Global Growth has delivered an average annual return of 14.9%, surpassing the global market average of 13% per year. As of August 30, 2024, the LIC’s shares are trading at an 11% discount to their net tangible assets (NTA) value of $1.78. This discount enhances the dividend yield, which is projected to be $0.075 per share between December 2024 and September 2025. This results in a fully franked dividend yield of 4.75%, or 6.8% when including franking credits. The LIC has consistently increased its annual dividend since it began paying in FY19.
Brickworks Limited (ASX:BKW)
Brickworks Limited offers an appealing investment opportunity with its diverse asset base, which includes industrial properties and a substantial stake in Washington H. Soul Pattinson and Co. Ltd (ASX:SOL). These assets contribute to a robust cash flow, supporting attractive dividend payouts.
Brickworks is notable for its remarkable consistency in dividend payments, having maintained its dividend for nearly 50 years. Additionally, it has raised its dividend annually over the past decade. Currently, Brickworks shares offer a fully franked dividend yield of 2.5%, or 3.6% when including franking credits. The company typically trades at a discount to its underlying asset value, providing a potentially good value for investors.
Both WCM Global Growth Ltd and Brickworks Limited represent strong options for those interested in ASX dividend shares that provide a combination of stable income and growth potential.
