I’m always on the hunt for quality ASX dividend shares at a good price. I’m going to talk about two that look wonderful buys today.
It’s not comforting to see the market fall, but bargain hunters can find opportunities if you look across the market.
With that in mind, I’m going to outline two opportunities that are trading at very good opportunities.
Charter Hall Long WALE REIT (ASX: CLW)
I think this real estate investment trust (REIT) looks like an excellent investment. It looks like a good time to invest because it’s down by 25% in the past six months.
For a defensive business, that’s a big fall considering the steady nature of rental income.
The ASX dividend share owns a diversified portfolio across telecommunication exchanges, service stations, pubs/hotels, distribution centres, food manufacturing, Bunnings real estate and more.
Charter Hall Long WALE REIT pays a distribution every quarter, which is pleasing for regular cashflow for our bank accounts.
The business has rental growth baked into its contracts with its quality tenants. Around half have a fixed level of income growth each year, while the other half have inflation increases.
Higher inflation from the Middle East conflict may lead to an increase of rental income growth.
It’s forecasting a 2% increase in the distribution during FY26 to $0.255 per unit, which is a distribution yield of more than 7.3%.
Australian Foundation Investment Co Ltd (ASX: AFI)
This is a leading listed investment company (LIC) that enables Australians to invest in a portfolio of predominantly large ASX shares.
One of the benefits of the LIC structure is that it can decide how large of a dividend it wants to pay to investors. AFIC has built up such a large profit reserve that it can decide on the level of income to shareholders.
AFIC has been very consistent with its dividend payout this century and it has been slowly but steadily increasing the payout in recent years.
This seems like a good time to invest because it is trading at a very large discount to what it has done historically.
Currently, the ASX dividend share is trading at a 13% discount to the latest weekly net tangible asset (NTA) value – that’s the underlying value of the portfolio.
Due to that discount, its dividend yield (excluding special dividends) is now 5.4%, including the bonus of franking credits.
With an offering of diversification, long-term returns and a reliable dividend, it could be a pleasing ASX dividend share to own.
