ASX dividend shares can be a wonderful source of income and deliver long-term share price growth, if we choose the right ones.
These days, a dividend stock has to have a strong yield to be appealing with how much interest we can get from savings accounts or term deposits these days.
If I were looking for a combination of dividends and growth, these are two I’d buy.
WCM Global Growth Ltd (ASX: WQG)
WCM Global Growth is a listed investment company (LIC) that is aiming to increase its dividend for investors (every three months).
The portfolio is focused on businesses that growing their economic moat, or competitive advantages. It’s also looking for the businesses to have a corporate culture that is focusing on delivering that moat strengthening ethos.
The ASX dividend share is looking at the global share market for portfolio ideas, so there’s a wide array of businesses that it can choose from.
Over FY23, the investment portfolio delivered a net return after fees of 23.25%, compared to its global benchmark of 21.5%.
Based on the latest guidance, the upcoming fully franked dividend yield is 5.4%. It’s trading at a 16% discount to the net tangible assets (NTA) at 21 July 2023, which is a good discount in my books.
Wesfarmers Ltd (ASX: WES)
Wesfarmers is the name behind a number of Australia’s leading retailers like Bunnings, Kmart, Officeworks and Priceline.
In an environment where households aren’t wanting to spend a lot of money, these are the sorts of businesses that could provide shoppers with more attractive prices compared to competitors.
I’d call it a great ASX dividend share because it usually increases the annual dividend each year, it has a solid dividend yield and it’s steadily growing its business operations.
For example, Wesfarmers has expanded into healthcare after making a few acquisitions, it’s also getting closer to making money from Mt Holland, which is a joint venture lithium operation.
Wesfarmers’ trailing fully franked dividend yield is 3.8%.
