296,399 shares of this ASX dividend stock pays an income equal to the Age Pension

Detailed summary

This ASX dividend stock could be precisely what income seekers are looking for. The post 296,399 shares of this ASX dividend stock pays an income equal to the Age Pension appeared…

The ASX dividend stock Future Generation Australia Ltd (ASX: FGX) looks like one of the most compelling ideas for dividends in Australia, in my view.

Excitingly, it has a great dividend yield, a track record of payout growth, plenty of diversification and a pleasing philanthropic purpose.

The business operates as a listed investment company (LIC), meaning that it invests in other shares for investors. But, there are no management fees or performance fees involved with Future Generation Australia.

It donates 1% of its net assets each year to youth-related charities such as Australian Children's Music Foundation, Lighthouse, The Mirabel Foundation, Raise, Brave, Giant Steps, Yawarda and others.

Future Generation Australia is one of the few businesses on the ASX that has increased its dividend every year in the last decade. It has hiked its payout each year since it started paying to shareholders in 2015.

That's a very pleasing record considering all of the volatility and difficult times for the ASX share market in the past decade.

If you just looked at the dividend payments, you wouldn't have noticed any downturn.

It's not as though the payout has been growing at a snail's pace either. It expects to grow its annual dividend for the 2026 financial year by 5.6%. That's a solid increase, in my book.

The business trades at an attractive price compared its net tangible assets (NTA), enabling a very attractive dividend yield. In October 2026, it reported its September 2026 monthly update, which showed NTA of $1.3352 before tax. At the time of writing, it's trading at a 3% discount to the September 2026 NTA.

Opening of the article, excerpted from The Motley Fool Australia. To read the rest, open the article on the publisher's site.