These two ASX dividend shares have a lot of potential to deliver both income and capital growth.
With how the RBA is cutting interest rates this year, I think dividend-paying investments are becoming increasingly attractive with safe assets like cash and bonds seeing a reduction in the level of income they can offer.
With that in mind, there are a few ASX dividend shares that really appeal to me. I’ll tell you about two of them.
WCM Global Growth Ltd (ASX: WQG)
I like listed investment companies (LICs) for their ability to turn investment returns into steady (and potentially growing) dividend payments.
The WCM investment team are based in California, they look for global companies with competitive advantages that are becoming increasingly strong and delivering stronger profitability.
Another factor that WCM looks for is businesses that have a corporate culture that fosters continued competitive advantages.
I think this investment style is helping deliver good results. In the five years to June 2025, it achieved an average return per year of 15.4%. This is helping fund the annual dividend growth every year.
The dividends it has paid over the last 12 months comes to a dividend yield of 5.6%, when including the franking credits.
Rural Funds Group (ASX: RFF)
One of the most Australian sectors, in my opinion, is agriculture.
Farming itself isn’t necessarily a hugely profitable sector, but leasing out farms can be a more consistent and defensive sector.
This ASX dividend share’s tenants usually sign on for many years, meaning the business has a lot of contracted income already locked in across its cattle, almonds, macadamias, vineyards and cropping.
Despite the headwinds of higher interest rates, Rural Funds has continued to pay a distribution per unit of $0.1173. That means it currently has a distribution yield of 6.5%.
A combination of rental income growth and investments in the farms should help the ASX dividend share continue to deliver good income and hopefully deliver growth.
