There are very few ASX dividend stocks I’d view as a more reliable option for passive income than Future Generation Global Ltd (ASX: FGG).

When I think about which businesses I’d want to own for dividends, I’d want to choose names that can provide both a good dividend yield and a rising payout.

If an investor wants passive income, then they’ll probably be looking for a good yield upfront. But, growth of the payout is also important to help offset inflation and hopefully provide steadily rising dividends to make our bank accounts increasingly well-off.

Future Generation Global is a listed investment company (LIC) that offers numerous positives. Let’s look at the positives and why I’d buy it with $1,000 (or more).

Philanthropic efforts

The business is not like many other ASX dividend stocks. It’s a LIC which provides investors exposure to a portfolio of funds of different fund managers.

All of those fund managers work for free so that Future Generation Global can donate 1% of its net assets each year to charities focused on youth mental health.

Some of the charities that are supported by Future Generation Global include BackTrack, Bighart, Life4Life, Mind Blank, Prevention United, Project Rockit, Reachout, Smiling Mind and Youth Opportunities.

I think it’s a really great set-up for both investors and the charity contributions.

Diversification

Future Generation Global can provide investors with excellent diversification because it’s invested in the funds of 15 different fund managers.

There are more than 3,700 different underlying shares in the ASX dividend stock’s portfolio, so Future Generation Global actually offers enormous diversification across North America, the UK, Europe, Asia and so on.

Its money is spread across a number of fund managers including Antipodes, Yarra Capital Management, Munro, WCM Investment Management, GCQ, Ellerston Capital, Vinva, Langdon, Plato and Paradice.

Dividend yield

The ASX dividend stock recently announced its FY26 interim dividend for shareholders – 4.2 cents per share and provided guidance that the final dividend per share for FY26 will be another 4.2 cents per share.

That brings the potential FY26 annual payout to 8.4 cents per share. At the current Future Generation Global share price, that translates into a possible grossed-up dividend yield of 7%, including franking credits, at the time of writing.

That would generate around $70 of grossed-up dividend income with a $1,000 investment for FY26 by buying 584 shares.

That’s more appealing to me than a term deposit, particularly when it’s combined with its rising dividend.

Rising payouts

Future Generation Global has increased its annual payout each year since FY19, so investors have already had several years of dividend growth. It also has a profit reserve of 66.4 cents per share, which suggests it can fund close to eight years of dividends based on the FY26 dividend level.

Pleasingly, the guidance the business has provided for FY26 translates into year-over-year growth of 5%. That’s a solid rate of growth, in my opinion.

But, it’s not the only ASX share I’d buy with $1,000. There are a few other compelling opportunities.

The post $1,000 buys 584 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 Future Generation Global. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a busy week for Australia’s top brokers. This has led to a number of broker notes being released. 

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Coles Group Ltd (ASX: COL)

According to a note out of Macquarie, its analysts have retained their outperform rating and $25.10 price target on this supermarket giant’s shares. This follows news that the company has walked away from a potential $4 billion deal to buy Petbarn’s owner Greencross. Coles revealed that it has ceased talks with private equity firm TPG Capital over the potential buyout of the pets and vets business. Macquarie believes the news removes an overhang. Though, it concedes that the market may still price lingering questions on strategy given the share price performance around the news. Overall, the broker believes the long-term strategy in the Supermarkets business remains intact and continues to see growth opportunities from increased private label penetration and retail media. The Coles share price ended the week at $23.21.

Harvey Norman Holdings Ltd (ASX: HVN)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this retail giant’s shares with a reduced price target of $6.00. While the broker suspects that FY 2027 could be a tough year for retailers like Harvey Norman, it feels this is more than priced in. Bell Potter highlights that Harvey Norman’s shares are trading on a 1-year forward P/E ratio of ~13x, which it believes is attractive. In addition, it continues to see mid-longer term growth catalysts. This includes new store-driven growth in international retailing (UK, Malaysia, Croatia), the refit program in Australia, and the expansion of brand partnerships in the mid- premium end of the whitegoods market. Bell Potter also sees opportunities to grow its real estate portfolio as Australia’s single largest owner in large format retail with a global portfolio of ~$4.6 billion. The Harvey Norman share price was fetching $4.78 at Friday’s close.

ResMed Inc. (ASX: RMD)

Analysts at Morgans have retained their buy rating on this sleep disorder-focused medical device company’s shares with a slightly trimmed price target of $40.97. According to the note, Morgans believes the divestment of the MatrixCare business for US$490 million crystallises a disappointing financial outcome (ResMed paid US$750 million in 2018). However, strategically, the broker believes the transaction makes sense. It notes that it simplifies the portfolio and retains Brightree and MEDIFOX DAN, while exiting a lower-growth, non-core software business. In addition, net proceeds will largely be returned to shareholders via an accelerated share repurchase, which it believes should substantially offset earnings dilution from both the MatrixCare disposal and the recently completed Noctrix acquisition. As a result, it remains positive and continues to see lots of value on offer here. The ResMed share price ended the week at $28.75.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has positions in and has recommended Harvey Norman and ResMed. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When investing for the long term, the next few months are far less important. 

What is important is whether your investments give you exposure to companies, industries, and regions that could still be relevant in a decade or two.

With that in mind, here are three top ASX exchange traded funds (ETFs) that could be worth buying and holding for the long term.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF gives investors exposure to some of the world’s best growth companies.

This fund owns 100 of the largest non-financial companies listed on the Nasdaq exchange. Examples include Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL).

What makes this fund attractive over a 20-year period is the way its holdings sit close to the big profit pools of the digital economy.

Artificial intelligence, cloud computing, chips, software, digital advertising, ecommerce, streaming, and consumer technology are not short-term market themes. They are areas where huge amounts of spending, talent, and innovation are likely to keep flowing.

Some companies in the fund will lose momentum over time. Others may become even more important. That is the advantage of using an ETF. Investors can own the broader ecosystem rather than trying to guess exactly which company will dominate in 2046.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF offers a different lens on technology.

Many investors look at tech through a US market lens, but Asia is central to the global digital economy. It is home to major businesses involved in semiconductors, memory chips, hardware, ecommerce, online platforms, gaming, and digital services.

Examples of holdings include SK Hynix (NASDAQ: SKHY) and Taiwan Semiconductor Manufacturing (NYSE: TSM).

This fund is not a low-risk option. It is concentrated in one region and one sector, and investors need to be comfortable with volatility, currency movements, and geopolitical risk.

But the long-term case is still compelling. Asia is where a large part of the world’s digital infrastructure is built, and it is also home to enormous consumer markets that continue to move online.

By 2046, the region’s technology leaders could be playing an even larger role in global markets.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT)

The VanEck Morningstar International Wide Moat ETF gives investors a more selective way to own global shares.

This fund looks for international companies that are considered to have strong competitive advantages and are trading at attractive valuations.

That makes it different from a standard global ETF. Rather than just owning the largest companies in the market, this ASX ETF is trying to identify businesses with qualities that can protect profits over time. That could include strong brands, cost advantages, intellectual property, network effects, or high switching costs.

Examples of its holdings include Novo Nordisk (NYSE: NVO) and Nike (NYSE: NKE).

The fund’s role in a long-term portfolio is discipline. It gives investors exposure to global businesses, but with a filter that looks beyond popularity and market size.

Over a long period, that combination of competitive strength and valuation awareness could be valuable as market leadership changes and investors move between different sectors, countries, and themes.

The post 3 super ASX ETFs to buy and hold until 2046 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Betashares Capital – Asia Technology Tigers Etf, and Nike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Nike, Novo Nordisk, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Nike, Nvidia, and VanEck Morningstar International Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.