Both of these ASX dividend shares look like they are strong picks for high levels of income in February 2024.
The share market has shot higher in the last few months as markets become more optimistic on the outlook for interest rates. Some caution is still warranted, we probably aren’t completely out of the woods yet.
But, for investors who are still focused on dividends, some picks could work for a high yield.
WCM Global Growth Ltd (ASX: WQG)
This listed investment company (LIC) is one I regularly like to come back to because of its investment style and the commitment to good dividends.
The ASX dividend share invests in global shares, which the WCM investment team think have growing economic moats or improving competitive advantages. Those businesses should also have a corporate culture that promotes the economic moat to keep growing.
Economic moats are really important because it’s what allows the business to stay ahead of competitors. For example, there’s a reason most people stick to the same internet search engine (Google), online video platform (YouTube) and same the maps provider (Google Maps) – Alphabet has a number of excellent services.
WCM Global growth has committed to a growing dividend. The quarterly dividend won’t necessarily grow every year, but as long as the portfolio keeps doing well the dividends can grow.
Its quarterly dividend will be 1.76 cents per share later this year, which would be an annualised yield of 7.3% including the franking credits.
The ASX dividend share’s latest monthly update showed it had outperformed the global share market over the prior year, five years and since the LIC started.
APA Group (ASX: APA)
APA is one of the most impressive ASX dividend shares for its dividend growth streak, which has seen its payouts grow every year since 2004.
It owns a large array of different energy assets including gas pipelines, a gas power station, renewable energy generation and electricity transmission. It has quite defensive earnings in my view.
APA continues to invest in new assets that allow it to unlock more cashflow to pay even bigger distributions.
It has guided an annual payout of $0.56 per security for FY24, which translates into a forward yield of 6.6%.
