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I’d buy these 2 ASX dividend shares in October

This month could be a great month to go hunting for ASX dividend shares. At the start of October, plenty of businesses look cheap.

I think it’s market declines like this that could prove to be a good long-term buying opportunity after so many prices have dropped significantly.

I love finding opportunities that pay good yields. I’ve already covered one ASX dividend share I’m interested in, but here are two more:

Future Generation Investment Company Ltd (ASX: FGX)

This is an (almost) unique listed investment company (LIC) on the ASX because it doesn’t charge any management fees, even though it operates as a ‘fund of funds’ by investing in the funds of a number of Australia’s leading fund managers.

The fund managers work for free, so that Future Generation can donate 1% of its net assets each year to youth-focused charities.

Future Generation’s overall portfolio returns can be used to both pay a growing dividend and retain the rest for future compounding.

In the latest monthly update it revealed that its gross portfolio performance was better than the ASX share market’s return by an average of 2% per year over the prior three years.

The ASX dividend share is expecting to pay a dividend yield of 8% including the franking credits for the 2022 year.

Wesfarmers Ltd (ASX: WES)

This is one of my clear favourite blue chips because of the diversification and quality within the business. It has a diversified portfolio of businesses from Bunnings, Kmart and Officeworks, to Priceline and Clear Skincare Clinics, as well as businesses within sectors like industrial, energy and fertilisers.

The Wesfarmers business looked very different 50 years ago and in 50 years it could be very different again. I like how the portfolio can change and adapt to future-focused areas of the economy, like lithium and healthcare. This flexibility could be a key way the business keeps performing well in the coming decades.

While it’s not likely to be a high-yielding ASX dividend share, I think it has a long history of being a proven dividend payer. Shareholder returns are a key focus for management.

In FY22, it paid an annual dividend of $1.80 per share. That translates into a dividend yield of 6% including the franking credits. I think the payout could be sizably larger in five years compared to FY22.

$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 — or get it emailed to you — for FREE by CLICKING HERE NOW or the button below.

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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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