Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

2 top ASX dividend shares to buy in July for income

I think there are some high-quality ASX dividend shares that are worthwhile owning for long-term income.

For me, investing for dividends is not about trying to find something that can pay a high yield in the short-term, but then there’s a chance the dividend could be permanently reduced to a mediocre level in the long-term. I want stability.

Resource businesses can be an exception because even a reduced dividend could still provide solid dividend yield, and we can be choosy when buying resource companies – they usually go in cycles, so a low point in the price/cycle would logically seem like a pretty good time to buy.

However, if I’m relying on a level of income, then I’d want to choose ideas that have a high chance of remaining reliable in regards to the dividend. But, remember that dividends are not term deposits. Having said that, these are two I’d like:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

WHSP is one of my favourite dividend options. It has already proven, over many decades, that it has longevity. It has been listed for over a century. The great thing about it being an investment house is that it can alter its investment portfolio over the years so it can ensure it always has good long-term growth potential.

The business is invested in lots of different ASX shares like Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG), Tuas Ltd (ASX: TUA), Pengana Capital Group Ltd (ASX: PCG), New Hope Corporation Limited (ASX: NHC), Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Macquarie Group Ltd (ASX: MQG).

It also has a growing private business portfolio. One of its main investments is Ampcontrol, a large Australian electrical engineering company. Ampcontrol has a strategy of to develop and supply advanced technology as well as innovative products and services that enable a competitive advantage in a net-zero carbon environment.

WHSP has grown its dividend every year since 2000, which is a strong record for an ASX share. It currently offers a trailing dividend yield of 3.9% including the franking credits. This is one of my favourite ASX dividend shares.

Rural Funds Group (ASX: RFF)

Rural Funds is a leading real estate investment trust (REIT) in the agricultural space. The main properties it owns are cattle farms, almond farms, macadamia farms and vineyards. But, there’s always scope for further diversification in the future.

The Rural Funds share price has fallen 14% over the last month. It has a goal of increasing its distribution by 4% per annum for investors, which is an attractive rate of growth in my opinion.

Rural Funds has provided guidance that the distribution (including franking credits) will be 12.2 cents in FY23, equating to a forward distribution yield of 4.7%.

Food is obviously vitally important for people, so I think the underlying demand for Rural Funds’ farms will stay attractive for a long time to come, perhaps forever.

I’d prefer to buy Rural Fund shares with a forward yield of at least 5%, but this could be a good starting point to build a position. Some of the ASX dividend share’s rental contracts are linked to CPI inflation, so the current situation is helping grow rental income.

$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.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

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 WHSP and Rural Funds.
Skip to content