ASX dividend shares can be a great way to boost income from a portfolio.
Businesses can make profit and then decide to pay out a certain amount of those earnings out as dividends and distributions.
Dividends are a good source of income, though businesses known for dividends may not produce as much profit growth as other businesses.
With that in mind, here are two ASX dividend shares that could pay good dividends:
Sonic Healthcare Ltd (ASX: SHL)
Sonic Healthcare is a large healthcare, predominately pathology, business. Prior to COVID-19, Sonic was producing decent growth with organic revenue growth, acquisitions and improved efficiencies.
The ASX dividend share has increased its dividend in most years over the last two decades. It increased its interim dividend further by another 6% in the FY21 half-year result.
I believe that Sonic has plenty of earnings to come from COVID-19 testing, more than the market may be expecting. It has been experiencing enormous profit growth and operating leverage because of the testing for COVID-19.
But with the new variants that continue to appear, testing could remain strong for a while to come. Sonic is using that profit and cashflow to look for acquisitions to lock-in the growth of earnings rather than simply paying it out in a one-off large dividend.
I like that the board are being slow and steady with the dividend so it can consistently grow rather than seeing ups and downs.
At the latest Sonic share price, it has a partially franked dividend yield of 2.3%.
MFF Capital Investments Ltd (ASX: MFF)
I like to look for ASX dividend shares that are good for income but are also at a good price.
MFF is a listed investment company (LIC) that looks to invest in international shares. The biggest holdings are based in the US, though European and Asian businesses are also represented as well.
Some of the portfolio names include Visa, Mastercard, Amazon, Home Depot, Facebook, Home Depot, CVS Health, Microsoft and Bank of America.
The board has a goal of increasing its half-year dividend to 5 cents per share. That would translate to a fully franked dividend yield of 3.4%.
It has been growing its dividend for a few years and it could increase its dividend in the years ahead after the 5 cent goal
In terms of value, its share price was $2.91 at the time of writing but the weekly pre-tax net tangible assets per share (NTA) was $3.34 on 2 July 2021. That means the discount is 13% at the time of writing, which is attractive to me.
