I think that some ASX dividend shares look like real opportunities right now.
The share market may seem the scariest when share prices are falling, but that could be the best time to buy because that’s when prices look the cheapest.
I believe that businesses that have demonstrated long-term performance are worthwhile looking at for income.
Whitefield Industrials Ltd (ASX: WHF)
This is a listed investment company (LIC). It targets ASX blue chips, but as the name suggests it has more exposure to industrial businesses that some of the other blue-chip focused LICs like Australian United Investment Company Ltd (ASX: AUI). It avoids investing in resources. So, it could provide a more consistent performance.
It has investments in businesses like Commonwealth Bank of Australia (ASX: CBA), CSL Limited (ASX: CSL), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), Wesfarmers Ltd (ASX: WES), Telstra Corporation Ltd (ASX: TLS) and Transurban Group (ASX: TCL).
The ASX dividend share has paid 10.25 cents per share every six months since 2019 and it’s expecting to pay another 10.25 cents for the upcoming half-year result. But, it has a long history of dividend reliability.
It has a dividend yield of 5.6%, including the franking credits.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Pinnacle says that it represents a growing a diverse family of world-class investment management firms (affiliates). The idea is that Pinnacle can initially partner with leading investment managers and help them set up their own investment business, providing seed funds.
The ASX dividend share can also help with ongoing administrative tasks such as compliance, legal and so on.
It reports the total funds under management (FUM) which is managed by affiliates. That’s spread across ASX shares, global shares, ‘real’ assets and credit/debt investing.
After a drop of more than 45% since the start of the year for the Pinnacle share price, the dividend yield now looks pretty good.
The projection on Commsec suggests a total dividend of 33.8 cents in FY23. That’s a 5.6% yield including the franking credits.
I think this business can continue to grow as its affiliates attract FUM due to performance, and Pinnacle can also expand its portfolio locally and globally. This could be one of the ASX dividend shares that rebounds significantly when investment markets start properly recovering.
