I’ve always got my eyes on the look out for quality ASX dividend shares that may be able to boost my income.
Dividends are a nice way for investors to be rewarded with cash every three or six months, depending on how often the business pays.
With interest rates almost zero at the moment, finding ways to grow investment income could be a smart idea.
That’s why I reckon these two ASX dividend shares could be solid ideas:
MFF Capital Investments Ltd (ASX: MFF)
MFF Capital could be one of the very best listed investment companies (LICs) around. The job of a LIC is simply to invest in other shares or assets to make returns for shareholders. MFF Capital has done very well at making investment returns under the stewardship of Chris Mackay.
I’d describe the MFF Capital portfolio as one that is predominately looking at international blue chips with good growth potential. In the portfolio, names that make up more than 4% of the portfolio (at 24 September 2021) include: Visa (15.4% of the portfolio), MasterCard (14.1%), Amazon (10.2%), Home Depot (9.5%), Facebook (7.5%), Alphabet (6.7%) and Microsoft (4.1%).
As you can see, it’s a quality-focused portfolio.
When it comes to the dividend, the ASX dividend share’s board has indicated that they want to grow the half-yearly dividend to 5 cents per share, equating to a full year dividend per share of 10 cents. At the latest MFF Capital share price, that’s a yield of 3.4%, or 4.9% including the franking credits.
When Chris Mackay buys MFF shares, I think that’s a good indicator to consider buying shares ourselves. It was announced on Friday (22nd October) that he had bought another 372,942 shares on the market, bringing his total ownership to 90,553,172 million MFF Capital shares.
APA Group (ASX: APA)
APA group is a large, relatively unloved ASX dividend share.
The APA share price has fallen around 20% over the last year. It now has a market capitalisation of around $10 billion, despite having a very good income profile.
This infrastructure giant has paid a growing distribution every year for the last decade and a half. It has guided another increase in FY22, with an expected annual payment of 53 cents per share. That equates to a forward distribution yield of 6.2%.
APA has a wide array of energy assets, with its huge gas pipeline being the key asset. There’s a potential greener future for the pipelines if it can be utilised for hydrogen.
The business says that it’s a stable business with solid cash flow and positive leverage to increasing inflation. It has a growing organic growth pipeline of $1.3 billion over the next three years, which will hopefully grow cashflow and fund bigger distributions. That’s before the potential acquisition of Ausnet Services Ltd (ASX: AST), if it wins the takeover battle.
I think APA has a lot of steady growth potential ahead if the business is successful at investing in the renewable, electric and hydrogen transition across Australia and the US.
