One of the most exciting things about big declines on a day like yesterday is the lower share prices and the higher dividend yields on offer from ASX dividend shares.
When a share price goes down, it means that the dividend yields get larger (assuming the business is going to pay the same level of dividend).
But, in the uncertain economic environment, I’m looking for ASX dividend shares that can pay a solid yield, the payout can be resilient and can achieve long-term growth for both earnings and shareholder payments.
These are two I’d be looking at:
Charter Hall Long WALE REIT (ASX: CLW)
This is one of the largest real estate investment trusts (REITs) on the ASX. After falling 15% over the past six months, I think that it’s looking really attractive.
This property trust owns a diversified portfolio of properties that are all on long-term rental leases. Some of the types of properties it’s invested in include Bunning Warehouses, telecommunication exchanges, offices, agri-logistics and so on.
The ASX dividend share’s portfolio weighted average lease expiry (WALE) was 12 years at the end of FY22, which provides long-term income security. Around half of lease rent is CPI linked, with a 6.3% weighted average increase of 6.3% in FY23. The other half – fixed leases – had an average fixed increase of 3.1%.
It’s expecting to pay a distribution per share of 28 cents, which equates to a FY23 distribution yield of 6.4%.
Future Generation Global Investment Co Ltd (ASX: FGG)
This is a listed investment company (LIC) which is invested in a different set of assets to a typical LIC.
While normal LICs typically own a portfolio of shares, the Future Generation Global LIC is invested in a portfolio of investment funds.
The underlying investment funds are with some of Australia’s most accomplished fund managers that look at global shares. But, pleasingly, none of these fund managers charge Future Generation Global any management fees or performance fees.
Why no fees? There’s a philanthropic element to the LIC – it donates 1% of its net assets each year to youth mental health charities, which is an important and undervalued area of the charity world in my opinion.
Some of the charities that the ASX dividend share supports include Reachout.com, Smiling Mind, Mind Blank, Youth Opportunities and BackTrack.
At the current Future Generation Global share price, it has a dividend yield of 8.8% including franking credits.
