Two ASX Shares Make Up 40% of This Investor’s Portfolio

An investor has revealed that two ASX shares form about 40% of their portfolio, focusing on both capital growth and dividend income. The goal is to increase passive income to cover expenses, whether essential or discretionary.

The first share is MFF Capital Investments Ltd (ASX: MFF), a listed investment company (LIC) that primarily invests in international shares. MFF targets businesses with strong growth prospects and owns stocks like Mastercard, Visa, Alphabet, and Amazon. The investor appreciates the portfolio's diversification and flexibility to invest globally. MFF has been increasing its dividend by 1 cent per share every six months, with an expected rise to 25 cents per share in FY27, translating to a grossed-up dividend yield of 6.6%, including franking credits.

The second share is Washington H. Soul Pattinson and Co Ltd (ASX: SOL), one of the oldest companies on the ASX, listed for over 120 years. Soul Patts has a diverse portfolio, including fixed income, private credit, agriculture, telecommunications, and more. The investor values its exposure to various assets and its consistent dividend growth since 1998. The latest annual dividend was $1.11 per share, offering a grossed-up dividend yield of 3.5%, including franking credits.