Some great ASX dividend shares are available for Aussies to generate income from.
People can buy pleasing investments and then just sit back and receive the flow of dividends.
Here are two that I really like the look of for investment income.
WCM Global Growth Ltd (ASX: WQG)
WCM Global Growth is a listed investment company (LIC) that invests in global shares outside of Australia that are seen as having appealing quality competitive advantages, and that have company cultures that enable those companies to strengthen their competitive advantages further.
Over the five years to May 2023, its investment portfolio has delivered net returns of an average per year of 12.3%, compared to 10.8% for the global benchmark. It’s these returns that are enabling the LIC to (currently) grow its dividend every three months.
The March, June, September and December 2023 dividends amount to a fully franked dividend yield of 5.6%, or 8% if we include the bonus franking credits.
At the moment, the ASX dividend share seems to be priced at a mid-teen discount to its underlying assets.
VanEck Morningstar Australian Moat Income ETF (ASX: DVDY)
This investment is an exchange-traded fund (ETF) that looks to capture the performance of the 25 highest dividend yield paying ASX shares, excluding real estate investment trusts, that meet Morningstar‘s criteria of economic moat and distance to default measures.
This investment strategy means that the businesses have strong competitive advantages and are economically strong. It’s a portfolio of good ASX dividend shares.
At the end of June, its biggest five positions were: McMillan Shakeseare Limited (ASX: MMS), AUB Group Ltd (ASX: AUB), Pinnacle Investment Management Group Ltd (ASX: PNI), Aurizon Holdings Ltd (ASX: AZJ) and Perpetual Ltd
(ASX: PPT). But, the idea is that the 25 holdings are equally weighted every so often.
It’s much more diverse than the ASX 200 (ASX: XJO), with only insurance (13.4%) and banks (10.9%) having weightings of more than 10%.
According to VanEck, the 12-month distribution yield was 4.38% at 30 June 2023, or about 5.8% including the franking credits.
