ASX dividend shares can be appealing investments at any point of a market cycle. They can be particularly attractive during a market selldown.
Not only is the valuation better after a decline, but the dividend yield is higher too (assuming there isn’t a dividend cut by the business).
Looking at all of the recent changes in valuations, these are two ASX dividend shares I really like the look of:
Brickworks Ltd (ASX: BKW)
Brickworks has had a rough time recently as the market worries about the company’s building product divisions. Building activity in both Australia and the US has been disappointing, reducing demand for things like bricks, paving, stone and masonry, roofing and other products the company sells, particularly in Australia.
I view building activity as cyclical, so if there’s a right time to invest in Brickworks shares, this is the right time to do it, in my opinion.
I believe the market is significantly undervaluing the long-term potential and value of the ASX dividend share’s investment division and industrial properties, which are generating solid cashflow for Brickworks to grow profits and pay dividends.
Brickworks has grown its dividend every year in the past decade and hasn’t reduced its payout per share in almost 50 years. That’s great stability and currently offers a dividend yield of 4.1%, including franking credits.
WCM Global Growth Ltd (ASX: WQG)
I believe this is one of the most appealing listed investment companies (LICs) when it comes to ASX dividend shares.
It invests in a portfolio of global shares, with the focus being on businesses with strong economic moats (competitive advantages) and a company culture that fosters further improvement of those advantages (and helps profits rise).
The WCM Global Growth share price has dipped 15% since 21 February 2025, which has had a pleasing effect on the dividend yield. It’s expecting to pay a dividend yield of 7% over the next four quarters, including franking credits.
I believe the ASX dividend share is also trading at a discount of more than 10% to its underlying net tangible assets (NTA), though with all the volatility it’s difficult to say exactly what the discount is until the next weekly update.
The LIC’s investment team have a track record of outperforming the global share market over the long-term and I think it’s times like this which offer a more appealing entry point to buy the LIC. It’ll be interesting to see if WCM has made any new investments in March to take advantage of lower prices.
