Boost Your Income with These ASX Shares: A Smart Investment Strategy

Many Australians are exploring ways to enhance their income through investing in ASX shares. The share market presents a unique opportunity, allowing individuals to invest in companies that generate profits, including dividends. This article highlights three notable ASX shares that could contribute to building a second income through dividends.

Consider These ASX Shares for a Second Income

MFF Capital Investments Ltd (ASX: MFF)

MFF Capital Investments offers a unique exposure to a selection of leading global companies. Its structure as a listed investment company (LIC) enables it to provide a reliable source of passive income through dividends. The company has consistently raised its annual dividend per share over several years.

• Portfolio includes top technology and payment companies.
• Expected grossed-up dividend yield for FY26: At least 6% (including franking credits).

This potential yield marks a strong foundation for building a second income stream.

L1 Long Short Fund Ltd (ASX: LSF)

The L1 Long Short Fund also operates as an LIC, investing in both ASX and global shares. The fund employs various strategies, including short selling, targeting undervalued companies with low price-to-earnings (P/E) ratios.

• Average annual net return over the past five years: 18%.
• Latest quarterly dividend yield: 4.6% (grossed-up, including franking credits).

With a history of increasing dividends since 2021, it presents a viable option for those seeking to increase their income.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Although not exclusively an LIC, Washington H. Soul Pattinson operates as an investment house, diversifying investments across various sectors. The company’s portfolio includes prominent ASX shares and various private enterprises.

• Investments span across industrial property, agriculture, and more.
• Annual dividend growth: Consistent since 1998.
• Projected grossed-up dividend yield for FY26: At least 4% (including franking credits).

With its solid track record, this company remains a distinguished option for generating a second income through dividends.

Maximize Your Income with Smart Investments

Investing in ASX shares can be a strategic move toward establishing a second income. The shares highlighted above not only provide the potential for capital growth but also the opportunity for consistent dividend payouts, making them ideal choices for income-focused investors.