I’m always on the lookout for good value ASX dividend shares that can provide good income.
There have been plenty of ASX income shares that have declined heavily over the last year or so. Lower prices should mean a higher yield for investors.
These are two that have really caught my eye:
WCM Global Growth Ltd (ASX: WQG)
This is a listed investment company (LIC) that invests in global shares. That portfolio is focused on “quality global companies, primarily in the high growth consumer, technology and healthcare sectors.”
The fund manager, WCM, has a belief that ‘corporate culture’ is the biggest influence on a company’s ability to grow its competitive advantage or ‘moat’.
Over the past five years, the portfolio’s net returns beat the global share market return by an average of 1.8% per year.
The ASX dividend share is paying investors with a steadily-growing quarterly dividend. It’s expecting that the dividends declared for the 2023 calendar year will by 6.7 cents per share, which translates into a total dividend yield of 7.9% including the franking credits.
It’s trading at a 16% discount to its latest weekly net tangible asset (NTA) value as at 26 May 2023.
Rural Funds Group (ASX: RFF)
Rural Funds owns a farmland portfolio and leases to high-quality tenants across almonds, macadamias, vineyards, cattle and cropping.
The Rural Funds share price has sunk 40% over the last year. Yes, debt is now a lot more expensive and may hurt asset values, but I think the decline has been overdone considering a lot of Rural Funds’ debt is hedged for the next few years and it’s benefiting from higher rental growth due to an inflation boost.
If we assume that Rural Funds is going to pay a distribution per unit of 12.2 cents in FY24, that would be a distribution yield of 6.8%. If it grows the distribution to 12.69 cents per unit, it’d be a distribution yield of just over 7%. That’d be an exciting yield from a fairly defensive ASX dividend share.
