This is a great time to look at great ASX dividend shares after the Australian Federal Budget made negative gearing and capital gains a bit less attractive.
ASX dividend shares are capable of giving good dividend income and growing in value over time. I’m going to highlight two businesses I’m very optimistic will grow their dividends during the next 12 months and beyond.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
WHSP could claim to be the best ASX dividend share Australia has to offer, in some regards.
Regular dividend growth is where it has truly excelled, growing its dividend each year since 1998. No other business can claim the level of consistent dividend growth WHSP has. The next best dividend growth streak on the ASX started in the mid-2000s.
The business operates as an investment conglomerate. In other words, it invests in a wide array of assets like real estate, credit, farms, water entitlements and operating companies.
Some of the public and private businesses it’s invested in includes energy, resources, financial services, swimming schools, electrification and plenty more.
I like the flexible investment mandate because it means the business can invest in almost anything to find the best returns, or at least find the types of investments it wants to find in Australia or overseas.
It’s making new investments all the time and this helps improve and diversify its earnings and asset base for future years.
Currently, its dividend yield is 3.5% including franking credits and 2.4% excluding franking credits. It’s not a huge starting yield, but it’s regularly growing.
WCM Global Growth Ltd (ASX: WQG)
WCM Global Growth is another ASX dividend share that is a very compelling option for dividends.
It’s a listed investment company (LIC) that invests in a portfolio of quality global shares from across the world. Businesses with strengthening economic moats and a company culture that supports a strong-moat culture are very appealing to own.
Its portfolio has delivered an excellent average return per year over the last several years, though we can’t expect any particular size of return, so I won’t quote how well it has performed.
The good returns are helping fund large and growing dividends. It’s growing its quarterly dividend every quarter, which is a pleasing frequency of increases.
The next 12 months of dividends are expected by the board of directors to come to $0.0959 per share. That’s a dividend yield of 4.8% excluding franking credits and 6.9% including franking credits.
