Christmas has come early for the bank’s shareholders with the decision to slightly increase the 2024 dividend – despite a single-digit decline in the net profit and cash earnings.
Beating the market benchmark is never easy, with 72 per cent of Australian actively managed global equity general funds trailing the S&P World Index in the six months to June 30, 2024. Domestic equity funds performed slightly better, albeit against a significantly lower bar set by the S&P/ASX 200 Index.
Two ASX dividend shares for November
It’s becoming really tricky to get income from your money these days. ASX dividend shares may be the best answer.
Bank interest rates are now really low. To combat that, here are a couple of ideas:
Brickworks Limited (ASX: BKW)
If I’m thinking about investing for dividends, I’d be looking for a few different things. I want to see a good initial dividend yield, income reliability, and dividend growth. In my opinion, Brickworks ticks all of the boxes. You can watch Owen’s interview with the boss of Brickworks here. Investors may consider Brickworks’ construction products business as the most important factor. But the dividend is very compelling.
Using the last 12 months of Brickworks’ dividend, it has a dividend yield of 4.5% when including the franking credits. Considering the RBA interest rate is now almost 0%, that is an attractive yield, comparatively speaking.
In terms of reliability, Brickworks has one of the most reliable dividends on the ASX. It has a long history of dividend growth. It has been 44 years since the dividend was last decreased. A big part of that dividend reliability is due to the fact that it owns a significant portion of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares – which itself is a very reliable dividend share on the ASX. It’s pretty reassuring knowing that the dividend has been reliable for longer than I’ve been alive.
Another pillar to Brickworks’ reliable dividend is its joint venture industrial property trust that will soon have Amazon as a major tenant in Sydney. Commercial property trusts can pay good rental income and see steady capital growth if the land is valuable.
MFF Capital Investments Ltd (ASX: MFF)
MFF Capital is a listed investment company (LIC), which looks for attractively priced quality businesses overseas.
It has several of the best global businesses in its portfolio like Visa, MasterCard, Amazon and Berkshire Hathaway. So you get quality exposure with this investment.
MFF Capital’s board has recently committed to growing the dividend to an annualised 10 cents per share over the next couple of years. Using that forecast, MFF Capital has a forward dividend yield of 5.4% when including the franking credits.
There aren’t many investment products on the ASX that offer access to great global businesses, for a low operating cost/management fee, that have a a good dividend yield. It’s that combination that made me want it in my portfolio – I recently added to my position.
Other ASX dividend shares could also be worth considering like Magellan Financial Group Ltd (ASX: MFG) or WHSP.
This article was previously published on www.raskmedia.com.au.
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