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2 ASX dividend shares that I’d buy for big income

I like the idea of owning ASX dividend shares that pay attractive income to investors.

Lots of people may think of shares as a way to achieve share price growth, but dividends can be a very effective way to receive investment returns as well, perhaps with less volatility.

For investors focused on income, these two listed investment companies (LICs) are good options.

Hearts and Minds Investments Ltd (ASX: HM1)

Hearts and Minds is a diversified LIC because it’s invested in a number of ASX shares and international shares.

It’s based on taking the stock picking of a number of different fund managers and combining the best picks into a portfolio.

There is a core group of fund managers that have provided stocks for the portfolio. Every year, there is an investment conference that fund managers can present, and those picks are owned for 12 months.

All of the fund managers provide those picks for free, so that Hearts and Minds can donate money to medical research and mental health charities.

After suffering from the tech sell-off during 2022, it made some investment changes so that the portfolio would be more diversified.

The last dividend paid by the ASX dividend share was 13.5 cents per share, which is a dividend yield of 8.6% including the franking credits.

WAM Microcap Limited (ASX: WMI)

This LIC is focused on the small end of the ASX share market. I think small businesses have more growth potential than large ones due to their small size and that not many investors hunt in the microcap end.

The investment fund has done very well, with an annualised gross return of 14.7%, though that’s before management fees.

WAM Microcap has been using its solid performance to pay steadily growing fully franked dividends. In FY23 it’s guiding that it will pay an annual dividend of $0.105 per share, which is a dividend yield of 10.9%.

While most of the return will be coming in the form of dividends, I reckon that over the next three years it can deliver inflation-beating share price growth as well.

$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 Hearts and Minds and WAM Microcap.
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