2 ASX dividend shares that have grown their dividends for 10+ years in a row

The two ASX dividend shares in this article have grown their dividend every year in a row for over a decade including APA Group (ASX:APA).
The post 2 ASX dividend shares that have grown their dividends for 10+ years in a row appeared first on Motley Fool Australia. –


There are some ASX dividend shares that have grown their dividends every year in a row for more than a decade.

It’s rare to find businesses in Australia that have increased the dividend consecutively going back that far.

Here are two of those few examples:

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

This business is commonly called ‘Soul Patts ‘ – the full name is a bit of a mouthful.

It’s an investment house that has been listed since 1903. It has actually paid a dividend every year since listing – meaning shareholders have received something every year for over a century.

But that’s not the record that is being referred to. Soul Patts has increased its dividend every year since 2000. That’s the longest dividend growth streak from a share on the ASX. Over the last 20 years Soul Patts’ dividend annual compound growth rate has been 9.2% per annum.

Paying a stable and growing dividend is one of the main goals of Soul Patts’ management. The company has stated it has the profit reserve and franking credit balance to keep paying dividends. 

Its dividends are paid out of the net cash flow from its investments. That net operating cash flow, after paying for expenses, rose by 48.8% in FY20 to $252.3 million. The main reason for the big increase was a significant catch-up special dividend from its biggest investment, the telco TPG Telecom Ltd (ASX: TPG). That increase was despite dividend cuts from a number of other of its investments.

Some of the other major sources of investment income to fund Soul Patts’ dividend are ASX shares like Brickworks Limited (ASX: BKW), Milton Corporation Limited (ASX: MLT) and Bki Investment Co Ltd (ASX: BKI).

Soul Patts is also invested in smaller businesses which it hopes will become much larger businesses like Palla Pharma Ltd (ASX: PAL), Clover Corporation Limited (ASX: CLV) and Tuas Ltd (ASX: TUA).

The investment house also has a portfolio of unlisted businesses that it owns outright, or has a large substantial position in. Some of those private investments are: swimming schools, resources, Ampcontrol, financial services and agriculture.

At the current Soul Patts share price it has a trailing grossed-up dividend yield of 3.4%.

APA Group (ASX: APA)

APA owns a large network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets and delivers half the nation’s natural gas usage.

The energy infrastructure ASX share generated growth in FY20 despite COVID-19 impacts. Earnings before interest, tax, depreciation and amortisation (EBITDA) went up by 5.1%, operating cashflow up 8.3% and net profit after tax (NPAT) up 10.1%.

APA says that it pays its distributions from its operating cashflow, which is rising over time as new projects come online.

The business increased its total FY20 distribution by 6.4% to 50 cents. It has increased its distribution every year for a decade and a half. That is one of the longest ASX share dividend records around.

In FY21, APA is expecting EBITDA to be between $1.625 billion to $1.665 billion – this would be slightly down or the same compared to FY20. It also said that the total FY21 distribution is expected to be substantially the same as the FY20 distribution.

Using the trailing distribution, APA Group has a distribution yield of 4.5%.

These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

Click Here For Your Free Stock Report

Returns As of 6th October 2020

More reading

Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 2 ASX dividend shares that have grown their dividends for 10+ years in a row appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!