Why these 3 top ASX dividend shares are my biggest holdings

I love receiving dividends from my ASX share portfolio. That’s why a significant portion of my portfolio is focused on ASX dividend shares.

I like to own businesses that generate passive income in my bank account while also delivering long-term capital growth.

All three of the names I’ll highlight each have a weighting of more than 10% in my portfolio. Let’s run through the appeal of each of them.

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

This business has been one of my favourites for a very long time, and I imagine it will continue to be so for decades to come.

The investment conglomerate has built a diversified portfolio across a range of sectors, including resources, energy, financial services, property, retirement living, swimming schools, electrification, and so on.

Its investments are themselves growing, while the business can also expand its portfolio with retained earnings each year. It’s this combination that helps the company’s net asset value (NAV) and share price.

Soul Patts has increased its annual dividend per share every year since 1998, which is the best record for longevity on the ASX. Additionally, it has paid a dividend every year in its 120-year-plus history.

I think this business is one of the best options for a combination of long-term capital and passive income growth. The current grossed-up dividend yield is 3.5%, including franking credits.

MFF Capital Investments Ltd (ASX: MFF)

MFF is another leading business for passive income. The company’s regular annual dividend has increased every year for the past several years.

The listed investment company (LIC) invests in high-quality shares that are competitively advantaged (strong economic moats) with compelling growth outlooks.

With an excellent, diversified portfolio, MFF has achieved strong investment returns and this has funded very good dividends.

In FY26, the company grew its annual dividend per share by 23.5% to 21 cents. I expect the business will increase its FY27 annual dividend by 19% to 25 cents per share.

I think it’s a great option to get exposure to impressive global blue chips as well as strong passive income.

I believe its FY27 grossed-up dividend yield will be 6.7%, including franking credits, at the time of writing.

L1 Long Short Fund Ltd (ASX: LSF)

The third ASX dividend share that’s a major position in my portfolio is this LIC, which uses a mix of long-term investing and short-selling in ASX and international shares to generate strong returns.

The L1 team generally likes to look at businesses with low price-earnings (P/E) ratios, solid earnings growth, and a good outlook. That generally means avoiding (long-term) investing in tech shares and instead focusing on names in areas like resources, energy, and unloved names in other sectors.

L1 Long Short Fund is paying a quarterly dividend to investors, and this payout is increasing every quarter, which is a pleasing growth trajectory.

I expect the FY27 annual dividend will grow by at least 11% year over year, translating into a potential grossed-up dividend yield of 4.6%, including franking credits.

With the above three ASX dividend shares, I believe my dividend cash flow is on a very good course.