Building up income: 2 ASX dividend shares I believe are a buy

These two stocks have strong dividend potential.

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ASX dividend shares that are growing their dividend payouts could be appealing buys because of their passive income.

ASX blue chips are solid businesses, but some aren't necessarily growing dividend income or profit at a compelling speed due to their size and limited growth runway.

I think companies that are exposed to the global economy can provide more growth over the long term because they're looking to expand in a greater number of countries.

With that in mind, I like the look of the two ASX shares below with their growing payouts.

MFF Capital Investments Ltd (ASX: MFF)

This is one of the larger investment companies on the ASX, with a market capitalisation of more than $2.4 billion.

It recently announced the acquisition of funds management business Montaka, making MFF an operating company.

MFF aims to invest in global businesses with competitive advantages while buying them at good prices. Some of its biggest investments include Alphabet, Amazon, Mastercard, Visa, American Express, Meta Platforms and Microsoft.

I think great investment returns can continue as these companies continue to grow earnings at a pleasing pace.

In terms of the dividend, MFF's payout comes from a portion of its capital gains from previous years. The ASX dividend share has grown its annual dividend every year since 2018, and it intends to keep growing its half-yearly payout.

The business has announced its intention to grow its half-yearly payment to 8 cents per share, translating into a forward grossed-up (including franking credits) dividend yield of 5.3%.

GQG Partners Inc (ASX: GQG)

GQG is a leading fund manager that provides investors exposure to various funds focused on US, international and emerging market shares.

The GQG share price has fallen more than 15% since 19 November 2024, so the ASX dividend share is significantly cheaper than it was before.

This sell-off came after it was revealed that there were charges in the US against Gautam Adani and other executives and companies from the Adani Group, in which GQG is an investor. However, less than 10% of client assets are invested in issuers related to the Adani Group. Adani is defending itself.

According to The Times of India, GQG believes the Adani operations will continue even if individuals receive fines or sanctions. It pointed to other companies that have seen similar action, such as WalmartPfizer, and Toyota, though those investigations took years and often have reduced penalties.

It's unfortunate that one portion of GQG's investment money has run into trouble, but it has managed to outperform its benchmarks over the long term before now, so I don't think this is a long-term headwind for its performance as long as it can get back to outperformance soon enough.

GQG's funds under management (FUM) have grown significantly over the long term thanks to its funds growing themselves and new client money being added. I think it's highly likely that FUM growth can continue after this one-off bump.

This ASX dividend share has grown its dividend each year since 2022, when it started paying one. Future FUM growth can help support even larger dividend payments.

According to the projections on Commsec, it's trading at less than 10x FY25's estimated earnings with a forecast dividend yield of 9.6%.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of Motley Fool Money. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Meta Platforms, Microsoft, Pfizer, Visa, and Walmart. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $370 calls on Mastercard, long January 2026 $395 calls on Microsoft, short January 2025 $380 calls on Mastercard, and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Meta Platforms, Mff Capital Investments, Microsoft, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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