$1,000 buys 518 shares in an incredibly reliable ASX dividend stock

I think it’s quite rare to find ASX dividend stocks that offer a mixture of both reliability and a good dividend yield. WCM Global Growth Ltd (ASX: WQG) is one of the best businesses for that combination of passive income factors, in my opinion.

If I were picking a business for dividends, I’d pick WCM Global Growth over names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Rio Tinto Ltd (ASX: RIO), Westpac Banking Corp (ASX: WBC), Fortescue Ltd (ASX: FMG), National Australia Bank Ltd (ASX: NAB), Woodside Energy Group Ltd (ASX: WDS) or ANZ Group Holdings Ltd (ASX: ANZ).

Part of the reason for that preference is the fact that WCM Global Growth is a listed investment company (LIC). That means it invests in other assets on behalf of shareholders and the board of directors get to decide how big the payouts will be.

The LIC has a fairly different management team to many other LICs on the ASX – it’s managed by WCM, a fund manager that’s based in Laguna Beach, California. They chose that location so that its team are not “living in an echo chamber – surrounded by industry companies and peer analysts”.

Let’s look at the performance, reliability and dividend yield of this compelling ASX dividend stock.

Impressive passive income option

The LIC is invested in a portfolio of between 20 to 40 stocks that are quality global companies primarily in high-growth areas within consumer, technology and healthcare sectors.

There are a couple of key aspects that influence what the WCM team are looking for. They want to find businesses with an improving economic moat (competitive advantages). An economic moat is what keeps the business ahead of competitors or keeps customers coming back. Advantages could include intellectual property, brand power, network effects and ecosystems, cost advantages and so on.

When an economic moat is improving, it suggests the business is entrenching its position in the market further, giving it greater potential to grow profit.

The other main element of the investment strategy is that WCM look for businesses that have a corporate culture that enables an improvement in the economic moat. The investment team believe that corporate culture is the biggest influence on a company’s ability to grow its competitive advantage.

It looks across the world for opportunities, not just US businesses. At 31 May 2026, 56% of the portfolio was invested in the Americas, 21% was invested in Europe, 18% invested in Asia Pacific and 5% was invested in ‘other’.

As of 31 May 2026, the LIC’s portfolio has delivered a net return after fees of 15.8% per year since inception in June 2017 and 22% per year over the last three years. Past performance is not a guarantee of future returns, of course, but it shows the investment process can be very effective.

The strong performance by the ASX dividend stock’s portfolio has enabled it to grow its annual dividend per share every year since FY19. It started paying a quarterly dividend in FY23 and it has increased its quarterly payout every quarter since then.

Good dividend yield

The dividend has regularly increased and now the dividend yield is pleasingly high.

It has provided guidance that over the next 12 months, it expects to pay four quarterly dividends that total 9.59 cents per share.

The guidance translates into a grossed-up dividend yield of 7.1%, including franking credits, at the time of writing.

I think this seems like a good time to invest, partly because (at the time of writing) it’s trading at a high single-digit discount to its net tangible assets (NTA).

At the time of writing, investing $1,000 would buy 518 WCM Global Growth shares. I’d happily make that investment today.

The post $1,000 buys 518 shares in an incredibly reliable ASX dividend stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.