It’s almost 2023, it’s a good time to go hunting for ASX dividend shares that could pay juicy dividend yields.
Plenty of ASX shares are nursing declines after a difficult year that has been dominated by inflation and higher interest rates.
With the lower share prices comes more attractive dividend yields, which is a bonus for people that want higher levels of income.
While there could be more volatile times ahead, I believe it’s worthwhile hunting ASX dividend shares right now.
WCM Global Growth Ltd (ASX: WQG)
This is a listed investment company (LIC) that is operated by WCM, a fund manager that operates out of California in the US.
It focuses on high quality businesses that are listed around the world. A key investment focus for the team is finding businesses that have strengthening economic moats, which can also be described as improving competitive advantages. It’s the ‘direction’ of the state of the moat that matters most to WCM, which is why the team also try to invest in businesses that have management that cultivate a culture towards strengthening those competitive advantages.
This investment approach led to an outperformance of the portfolio compared to its global share market benchmark by an average of 2.3% per year over five years to November 2022.
The ASX dividend share has a “progressive dividend policy”. The interim dividend for FY23 is expected to be 3.25 cents per share. An annualised dividend of 6.5 cents per share represents a dividend yield of 5.6% excluding the franking credits.
Brickworks Limited (ASX: BKW)
Brickworks has a number of interesting segments. It is growing its brick businesses – the company is the biggest brickmaker in Australia and parts of the US. Brickworks also just announced that it is going to start supplying millions of bricks to the UK market as well.
But, what I find most interesting about the ASX dividend share is that it owns a significant amount of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares as well as half of two property trusts. The growing cashflow of the WHSP dividends and the improving rental profit can drive the Brickworks dividend higher.
Thanks to WHSP’s consistency, Brickworks hasn’t reduced its dividend by over 40 years.
Using the FY22 annual dividend per share of $0.63 per share (which was up 3%), this was a dividend yield of 2.8%, excluding the franking credits.
