I’d rate a number of ASX dividend shares as great opportunities right now because of the value and yields on offer.
I love dividend stocks because they can deliver a good combination of investment income as well as capital growth, if we buy them at the right price.
Lower share prices make me believe it’s a good time to consider investing in these ASX dividend shares.
Hearts and Minds Investments Ltd (ASX: HM1)
Hearts and Minds Investments Ltd (ASX: HM1) is a listed investment company (LIC). It has two main goals – to generate investment returns for shareholders and to donate to medical and mental health organisations.
Hearts and Minds Investments share price
All of the fund managers involved provide their stock picks to Hearts and Minds for free. Some of the portfolio is decided by a permanent group of fund managers, while the rest is decided annually when stock picks are made by some (other) fund managers that choose a stock they think can do well over the next year/long-term.
Some of the managers involved include Munro, TDM, Tribeca, Caledonia and Cooper. Current conference fund managers include Auscap, WaveStone, Firetrail and Samuel Terry.
The portfolio can end up with a diverse group of holdings such as Formula One Group, Mastercard, Microsoft, ASML and Nike.
Its latest annual dividend was 13.5 cents per share, which translates into a total dividend yield of 8% when including the franking credits. The ASX dividend share is currently at a 19% discount to its underlying value, the pre-tax net tangible assets (NTA) per share.
WCM Global Growth Ltd (ASX: WQG)
This is another LIC, which is managed by a single funds management business – WCM Global Growth Ltd (ASX: WQG), which operates out of California.
WCM Global share price
Its aim is to invest in global shares which have growing competitive cultures/economic moats and the investment team want to see a corporate culture at those businesses that cultivates a growing economic moat.
In the five years to July 2023, the ASX dividend share’s portfolio’s net returns were an average of 1.6% per year better than the global share market.
Looking at the dividend, it’s aiming to increase the dividend every quarter. The next four dividend payments per share are expected to be 1.68 cents per share, 1.72 cents per share, 1.74 cents per share and 1.76 cents per share.
That implies the next year of dividends will amount to a total dividend yield of 8%, including the franking credits. It’s currently at an 18% discount to its pre-tax NTA.
Both of these LICs have attractive return potential, are trading at big NTA discounts and currently have large dividend yields.
