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2 ASX dividend shares I’d want to buy in June 2021

ASX dividend shares can be a great way to boost your income in this period of really low interest rates.

How are savers supposed to make any sort of money from their cash if interest rates are almost at 0%?

If people need more income then a strategy could be to put some of it into dividend stocks to boost the overall yield.

Future Generation Investment Company Ltd (ASX: FGX)

Future Generation is a very interesting listed investment company (LIC).

The role of a LIC is to invest in other shares and assets on behalf of its shareholders.

Future Generation doesn’t directly invest into ASX shares. Instead, it makes investments into funds that target ASX shares. Future Generation only chooses to invest into the funds of the best Australian fund managers. Those managers work pro bono, meaning they work for free for Future Generation.

Why would they work for free? Future Generation was set up to donate 1% of its net assets each year to youth charities. That’s where the ‘future generation’ part of the ASX dividend share’s name comes in.

The portfolio has outperformed the S&P/ASX All Ordinaries Accumulation Index with less volatility. Since September 2014, the Future Generation portfolio has returned an average of 10.5% per year (before donations etc), compared to the index average return of 8.3%.

In terms of being a dividend investment, Future Generation has been steadily growing the dividend since it listed. It currently offers a fully franked yield of 3.9%.

At the latest Future Generation share price, it’s at an 8% discount to the net tangible assets (NTA) – the underlying value – at 30 April 2021.

Adairs Ltd (ASX: ADH)

Some ASX dividend shares have performed very strongly since the start of COVID-19. A few of those trends are now slowing down, or even reverting a bit.

But I think Adairs has a very promising future, which could translate into a solid and growing dividend over time.

Adairs has seen a high level of margin growth and profit growth. But it’s the future plans and valuation of the home furnishings business that particularly interests me.

The ASX dividend share is working on being able to offer customers a good experience in-store or online, particularly through its Linen Lover membership. It’s working at being more efficient throughout the business. Adairs is achieving good growth with its Mocka brand. Adairs is making its stores more profitable, with one strategy being to upsize them which generates more margin and profit. It’s also working on its supply chain with a new national distribution centre.

According to CommSec, at the latest Adairs share price it’s valued at 13 times the estimated earnings for the 2022 financial year. The forecast fully franked yield for the 2022 year is 5.25%.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz owns shares of Future Generation
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