There are not many ASX dividend stocks that I’d prefer to own rather than receive the cash flow of the Age Pension. WCM Quality Global Growth Fund (ASX: WCMQ) is one of the passive income choices I’d pick.

The exchange-traded fund (ETF) may not be as famous as names like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) or Rio Tinto Ltd (ASX: RIO). But, for various reasons, I think the WCMQ ETF offers investors more positives and potentially stronger long-term returns.

For me, there are three reasons to like the investment so much.

Elderly senior couple counting funds on calculator.

Image source: Getty Images

Excellent and diversified portfolio

WCM is a fund manager that’s based in Laguna Beach, California. That’s deliberately a long way from the culture of Wall Street in New York.

The investment strategy of the fund is to invest in a portfolio of high-quality shares from across the world.

There are two main factors that go into deciding whether the business is high-quality for this ASX dividend stock’s portfolio.

First, WCM wants to see that the business has an expanding economic moat (improving competitive advantages). For WCM, the direction of the moat is more important than the actual size of the moat.

One of the main ways that WCM judges whether a business is seeing a strengthening economic moat is with a rising return on invested capital (ROIC). This shows that the company’s economics are getting stronger.

Second, WCM analyses whether the business has a corporate culture that supports improvement of the economic moat.

The portfolio is truly global – it’s not massively focused on the US share market. Its portfolio is invested across the Americas, Europe, Asia Pacific and elsewhere.

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Its holdings regularly change, but its sector exposure typically focuses on IT, industrials and healthcare names. It also has positions in financials, consumer discretionary and others.

Great passive income

The WCMQ ETF offers investors a solid distribution yield, which is based on its net asset value (NAV).

The fund targets a distribution yield of 5%, which I’d say is a solid starting yield and I think the payments will rise over time thanks to WCMQ ETF’s pleasing investment track record.

A rising NAV over time should lead to growing payouts for investors.

Capital growth

In its July 2026 update, the ASX dividend stock revealed that its portfolio had returned an average of 15.2% per year since the ETF’s inception in August 2018.

With that level of return, the fund has been able to deliver both its pleasing dividend yield and the retained returns have helped grow the WCMQ ETF unit price over the long-term – it has approximately doubled in the last eight years.

Past performance is not a guarantee of future performance, of course, but I’m optimistic the fund can deliver pleasing returns, including capital growth. That’s why I think the ASX dividend stock is so appealing.

How to match the Age Pension with the ASX dividend stock

Currently the Age Pension is paying a maximum of approximately $1,200 per fortnight, though this will increase in the coming weeks. That translates into annualised income of $31,200.

The ETF expects to pay an annual distribution of 53.6 cents per security in FY27. That translates into needing 58,209 WCMQ ETF units to unlock the same level of cash payment. I’m also optimistic the ETF’s payout can grow at a faster pace than the Age Pension in the coming years. However, I’d also want to diversify my portfolio, rather than relying on one idea.

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Shin John
Shin JohnYtv Market News
Share-market news writer and analyst with deep experience covering equities, commodities, forex, and cryptocurrencies for readers in the USA, UK, Canada, and Australia. Ytv Market News delivers timely market updates, practical trading insights, and clear explanations of macro and company-level catalysts that move prices. Combines on-the-ground financial reporting with technical analysis, using concise charts and actionable ideas to help investors and traders make smarter decisions.