2 Asx Dividend Shares I Plan To Buy Next With $2,000

ASX dividend shares are a great choice for investors who want passive income.

They can provide a winning combination of dividend yield, dividend growth and long-term capital growth. Who doesn't want to have that winning combination? I certainly do, which is why there are a few ASX dividend shares I want to buy next.

The below two ideas have dividend yields of around 7% and are increasing their payouts at an impressive double-digit speed.

MFF Capital Investments Ltd (ASX: MFF)

MFF is best known as a listed investment company (LIC), though it also runs a small funds management business called Montaka.

The ASX dividend share typically invests in high-quality global businesses that have strong competitive advantages that MFF expects to deliver sustainable long-term earnings growth.

The businesses that have ended up in the portfolio include Alphabet, Visa and Mastercard.

When you invest in long-term compounders like the owner of Google, you can see excellent long-term returns because of how they increase their underlying value over time.

MFF uses its large profit reserve and significant franking credit balance to pay rapidly growing dividends for investors.

In FY26, it grew its payout by 23.5% to 21 cents per share and I expect the business to hike its payout by another 19% to 25 cents per share.

If MFF pays what I think it'll pay in FY27, it would be a dividend yield of 4.85% excluding franking credits and 6.9% including franking credits. That's a great starting yield in my eyes, with further growth expected in the subsequent years.

WCM Global Growth Ltd (ASX: WQG)

The other ASX dividend share I'm planning to buy with $2,000 is another LIC called WCM Global Growth.

I like LICs because they can provide both strong dividend income and diversification, which isn't necessarily available from ASX index funds.

WCM is a fund manager based in Laguna Beach, California, that aims to invest using a different approach than what you see on Wall Street (New York).

This LIC wants to see two factors with the global portfolio of stocks it chooses.

First, it wants to see that the shares have a strengthening economic moat. In other words, the competitive advantages are improving over time.

There are a variety of ways to evaluate the economic moat numerically. For WCM, it wants to see a rising return on invested capital (ROIC).

The second thing the ASX dividend share wants to see is that the businesses have corporate cultures that support a stronger economic moat. WCM has come up with a proprietary way to evaluate the corporate culture

With its impressive portfolio performance, WCM Global Growth is paying investors a pleasingly large and growing dividend.

Its latest quarterly dividend was hiked by more than 10%, and the company has guided the next 12 months of dividends to 10.1 cents per share.

That guided payout translates into a dividend yield of 5.1% excluding franking credits and 7.4% including franking credits.

Overall, there's a lot to like about both stocks, and I'm targeting them for my portfolio because of the dividends they pay.

The post 2 ASX dividend shares I plan to buy next with $2,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments and Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Mastercard, and Visa. The Motley Fool Australia has positions in and has recommended Mff Capital Investments. The Motley Fool Australia has recommended Alphabet, Mastercard, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.