I love receiving dividends from my ASX share portfolio. That’s why a significant portion of my portfolio is focused on ASX dividend shares.
I like to own businesses that pay passive income to my bank account, while also delivering long-term capital growth.
All three of the names I’ll highlight each have a weighting of more than 10% in my portfolio. Let’s run through the appeal of each of them.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
This business has been one of my favourites for a very long time and I imagine it will continue to be so for decades to come.
The investment conglomerate has built a diversified portfolio across a range of sectors including resources, energy, financial services, property, retirement living, swimming schools, electrification and so on.
Its investments are themselves growing, while the business can also expand its portfolio with retained earnings each year. It’s this combination that helps the company’s net asset value (NAV) and share price.
Soul Patts has increased its annual dividend per share every year since 1998, which is the best record for longevity on the ASX. Additionally, it has paid a dividend every year in its 120-year-plus history.
I think this business is one of the best options for a combination of long-term capital and passive income growth. The current grossed-up dividend yield is 3.5%, including franking credits.
MFF Capital Investments Ltd (ASX: MFF)
MFF is another leading business for passive income. The company’s regular annual dividend has increased every year for the past several years.
The listed investment company (LIC) invests in high-quality shares that are competitively advantaged (strong economic moats) with compelling growth outlooks.
With an excellent, diversified portfolio, MFF has achieved strong investment returns and this has funded very good dividends.
In FY26, the company grew its annual dividend per share by 23.5% to 21 cents. I expect the business will increase its FY27 annual dividend by 19% to 25 cents per share.
I think it’s a great option to get exposure to impressive global blue-chips as well as strong passive income.
I believe its FY27 grossed-up dividend yield will be 6.7%, including franking credits, at the time of writing.
L1 Long Short Fund Ltd (ASX: LSF)
The third ASX dividend share that’s a major position in my portfolio is this LIC, which uses a mixture of long-term investing and short-selling through ASX shares and international shares to generate strong returns.
The L1 team generally like to look at businesses with low price/earnings (P/E) ratios, solid earnings growth and a good outlook. That generally means avoiding (long-term) investing in tech shares and instead focusing on names in areas like resources, energy and unloved names in other sectors.
L1 Long Short Fund is paying a quarterly dividend to investors and this payout is increasing every quarter, which is a pleasing growth trajectory.
I expect the FY27 annual dividend will grow by at least 11% year-over-year, translating into a potential grossed-up dividend yield of 4.6%, including franking credits.
With the above three ASX dividend shares, I believe my dividend cash flow is on a very good course.
The post Why these 3 top ASX dividend shares are my biggest holdings appeared first on The Motley Fool Australia.
Should you invest $1,000 in Washington H. Soul Pattinson and Company Limited right now?
Before you buy Washington H. Soul Pattinson and Company Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Washington H. Soul Pattinson and Company Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 August 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- How much do I need to retire on $120,000 a year at 55?
- I’d buy 164,557 shares of this ASX stock to aim for $500 a week of passive income
- Why I’d buy this top ASX dividend share for major passive income today
- How much is needed in superannuation to target a $5,500 monthly passive income?
- How ASX dividend growth shares can build lasting income
Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Mff Capital Investments, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Mff Capital Investments and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.