I view the ASX share market as the best way to grow my wealth over the long-term. I get excited by lower prices when it comes to investing for better value. This year has seen plenty of volatility for asset prices, so I've been putting money to work in my portfolio to take advantage.
Thankfully, looking at my portfolio at this stage in the year, it isn't down too much. But, I did use the lower prices earlier in the year to load up, spread across a few different names.
I have mentioned before that all of my holdings pay dividends, which is the strategy that my wife and I settled on. That's not necessarily because I/we believe ASX dividend shares will make better returns. But, they are a way to receive the benefits of growth and profit generation without having to sell the investment position. I think selling well is much trickier than buying shares. It also helps me 'see through the noise' of share market volatility if I know dividends are on their way in a short period of time.
With that in mind, here are the non-listed investment company (LIC) names that I've invested in this year, in alphabetical order.
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Bailador Technology Investments Ltd (ASX: BTI)
Bailador is an investment company that focuses on small, but growing, technology businesses. The weakness in prices in the tech sector this year was the catalyst for me wanting to invest.
It only invests in businesses with a "proven" business model that have a global addressable market. In other words, Bailador only goes for tech names that have a lot of growth potential and good unit economics.
I like that it has a large cash pile, after successful asset sales many months ago. The ASX dividend share can use this cash to make investments in cheaper-valued private businesses.
At the current Bailador share price, it has a grossed-up dividend yield of around 7.5%.
Brickworks Limited (ASX: BKW)
I like that Brickworks has a very long dividend track record. The payout hasn't been cut in over 40 years. Sentiment about Australian building products can be quite cyclical, so I think times of weakness can prove to be opportunistic times to invest. It has just announced a supply agreement for bricks into the UK.
But, I'm attracted to the company's potential to keep growing the dividend and underlying value of its business. It owns 26.1% of investment business Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which provides helpful stability and diversification for Brickworks, a growing dividend and makes up the bulk of the underlying value of Brickworks.
The ASX dividend share also has a "substantial" property division with two joint venture trusts with Goodman Group (ASX: GMG), as well as wholly-owned land for development.
Brickworks has a trailing grossed-up dividend yield of 4.3%.
Duxton Water Ltd (ASX: D2O)
Duxton Water is a unique business on the ASX. It owns water entitlements and leases them to farmers for the short-term or the longer term.
I like the way it has an indirect exposure to the strong Australian farming sector, in a less-cyclical manner.
It's aiming to pay a growing dividend for investors and hopefully deliver capital growth over time. Duxton Water shares trade at a large discount to the stated net asset value of the company. I aim to invest when there's more rain in the east of Australia, to try to take advantage of the impacts of supply and demand. But, interestingly, the water price has remained strong this year.
The ASX dividend share has a trailing grossed-up dividend yield of 5.6%.
Rural Funds Group (ASX: RFF)
Rural Funds is a real estate investment trust (REIT) that also offers exposure to the agricultural sector. It owns farms across a number of areas including cattle, almonds, macadamias, vineyards and cropping (sugar and cotton).
The business is benefiting from the growing rental income, with some contracts having fixed rental increases and others being linked to CPI inflation, plus market reviews.
The ASX dividend share aims to grow its distribution by 4% per annum and its FY23 yield is expected to be 4.7%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Of the names on this list, this is the business that I have been investing in the most.
It has a diversified portfolio across a number of sectors including telecommunications, building products, financial services, property, resources, agriculture, swimming schools and so on.
Soul Pattinson may not be the quickest-growing business or have the biggest dividend yield, but it's the one that I'll most likely still own in my portfolio in 20 years and even 50 years.
The trailing grossed-up ordinary dividend yield for this ASX dividend share is 3.8%.
