2025 could be a year of significant volatility with effects like sustained inflation, high interest rates and a new US president with significant plans to contend with. ASX dividend shares could be an appealing place to invest.
No-one knows what’s going to happen each year, and next year could be particularly unpredictable. With that in my mind, I think it could be wise to look at investments that are diversified and are likely to grow their dividend in 2025 even if there’s a rocky patch.
If I were investing for income, the below two stocks would be two of my preferred options.
WCM Global Growth Ltd (ASX: WQG)
This is a listed investment company (LIC), meaning it invests in other shares.
WCM Global Growth invests in a portfolio of global shares, which I believe is good for diversification. There are lots of good opportunities out there beyond the ASX.
But, we don’t need to go hunting for those opportunities ourselves. Instead, we can leave it to the WCM investment team, who are based in California rather than Wall Street.
The ASX dividend share hunts for companies that have competitive advantages and a corporate culture that encourages the continuation and improvement of those advantages which can allow the business to make stronger profits.
Some of the businesses in the portfolio include AppLovin, Amazon, 3i, General Electric and Taiwan Semiconductor.
Pleasingly, the portfolio has delivered a net return of 16.2% per year, which was over 3% per year better than the global share market.
The LIC has provided guidance that it intends to grow the quarterly dividend each quarter to December 2025. The projected payouts equate to a dividend yield of 6.4% when the franking credits are included.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
WHSP is another business that operates a portfolio, but this investment company is internally managed, so the management costs are a much smaller percentage of the asset base. More of the returns stay with shareholders.
The company operates like a ‘family office’ might do – it thinks long-term, isn’t trying to recreate an index and can invest in a wide array of assets, wherever it thinks are opportunities.
The ASX dividend share has a diversified portfolio across a wide range of areas including private equity investments (agriculture, swimming schools, financial services etc), credit, property and ASX shares.
Some of its biggest ASX share investments include TPG Telecom Ltd (ASX: TPG), Tuas Ltd (ASX: TUA), New Hope Corporation Ltd (ASX: NHC), Brickworks Ltd (ASX: BKW), Pengana Capital Group Ltd (ASX: PCG), Aeris Resources Ltd (ASX: AIS), BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG) and Wesfarmers Ltd (ASX: WES).
It has grown its dividend each year for 24 years and its dividend yield is 3.9%, including the franking credits. I reckon there’s a very high chance the dividend will be increased in 2025.
