I love investing in wonderful ASX dividend shares that can provide a solid level of dividends and payout growth over time.
I always think it’s a good time to invest for growing, dividend-paying businesses. But, the lower interest rate environment makes it look like an even better decision.
In the current economic environment, I think it’s a great time to look at these ASX dividend shares.
Hearts and Minds Investments Ltd (ASX: HM1)
This is a listed investment company (LIC) with a couple of key goals – it wants to make investment returns for investors, but also make donations to advancing Australian medical research. Fund managers provide investment picks for the portfolio for free so that LIC can make the donations.
Core fund managers provide their three highest-conviction stock recommendations to form the core portfolio, representing 65% of the total investment portfolio. Those core managers are Caledonia, Magellan, Munro Partners, TDM and Prusik (a UK fund manager focused on Asian shares).
It also gets investment picks from the annual Sohn Hearts & Minds conference.
In its FY25 result, it reported that its investment portfolio had delivered a return of 25.5% after expenses but before taxes over the year, while the 3-year return was an average of 17.3%.
Some of its holdings currently include Amazon, Microsoft, Nvidia, Rokt, TSMC, Mercado Libre, Airbus and Zillow.
In a bid to reward shareholders, the ASX dividend share is expecting to increase its annual dividend per share to $0.195, which would be a dividend yield of 8% inclusive of the franking credits. It then plans to increase its dividend by 0.5 cents every six months “for the foreseeable future”.
Charter Hall Long WALE REIT (ASX: CLW)
This is a property business that owns a variety of properties that are all on long leases such as telecommunication exchanges, service stations, hotels and so on.
REITs can provide investors with a high distribution yield thanks to the pleasing rental yields of these types of properties (compared to houses).
It aims to pay out all of its rental (operating) profit to investors each year. While that reduces investment for growth within the business, it maximises the distribution for investors.
The ASX dividend share is expecting to grow its distribution by 2% in FY26 to $0.255 per unit, equating to a yield of 5.6%.
