ASX dividend shares can be a great investment if we choose ones with a good dividend yield and offer growth potential, like these two.
Future Generation Global Ltd (ASX: FGG)
This is a listed investment company (LIC) that can give exposure to a global portfolio of shares, pleasing philanthropic efforts and a strong dividend yield.
The business looks to donate 1% of its net assets to charities focused on helping youth mental health charities.
Future Generation Global invests in a portfolio of funds offered by fund managers that target global shares. Those fund managers work for free to enable the donations.
The ASX dividend share is invested in 16 actively managed funds, giving it exposure to more than 3,500 underlying shares across different countries and sectors. That’s very diversified!
It provides noticeably more exposure to Europe and UK shares than the global market, though its North America exposure is less.
Future Generation Global paid a normal dividend per share of $0,08 for FY25. That’s a dividend yield of 7% when the bonus of franking credits is added in. Its dividend growth streak started in 2019 and it has steadily grown ever since.
WCM Global Growth Ltd (ASX: WQG)
WCM Global Growth is another LIC – the portfolio is decided by a single fund manager, WCM.
This ASX dividend share targets a portfolio of between 20 to 40 global shares, which are all quality companies that are largely high-growth names from the consumer, technology and healthcare sectors.
WCM believes that corporate culture is the biggest influence on a company’s ability to grow its competitive advantage (economic moat). It’s this strategy that has allowed the portfolio to return an average of 14.7% per year since it started in June 2017, outperforming the global share market.
The ASX dividend share has steadily increased its dividend since 2019 and its payout is increasing every quarter.
The next 12 months of dividends could amount to a dividend yield of 7.5% when the franking credits are also included.
