May 2023 looks like a good month to consider investing in ASX dividend shares. There is still a lot of uncertainty out there with how much central banks are trying to limit demand in the economy.
Higher interest rates do hurt asset prices, but I just think that means they’re better opportunities. I’m looking to buy these two ASX dividend shares for the long-term.
WCM Global Growth Ltd (ASX: WQG)
This is one of my preferred ASX dividend shares because it now has a policy to pay dividends quarterly, giving investors regular access to investment cashflow. Plus, it aims to grow its dividend for investors, so that stream of dividends is turning into a river.
The next four quarterly dividends are expected to be a dividend yield of around 8% when including the franking credits.
In terms of the investment strategy, it’s a global shares portfolio where the fund managers and analysts are looking for businesses that are increasing their competitive advantages (and growing profitability), and those businesses need to have a “corporate culture” that wants to improve those competitive advantages.
The ASX dividend share has soundly outperformed the global share market over the past five years and I think it can continue this impressive dividend performance.
Washington H. Soul Pattinson and Co Ltd (ASX: SOL)
WHSP is an investment business that owns a variety of different assets including ASX shares, a yield-focused debt portfolio, private equity and property. I love the diversification offered by the business.
I don’t know what the future looks like, but I believe the flexibility of WHSP’s investment mandate allows it to invest in whatever industry or ASX share it thinks is promising. This can help it adapt to the future.
One of the best things about WHSP is that it has grown its regular dividend for investors every since the year 2000. While the dividend yield isn’t that high – it’s more than 3% – if the payout keeps growing then it can become a larger yield in the coming years.
I think in 20 years the ASX dividend share will still be paying a good dividend.
