Insights

2 ASX dividend shares that keep giving investors pay rises

Here are two ASX dividend shares that have been proving a good source of income for investors.
The post 2 ASX dividend shares that keep giving investors pay rises appeared first on The Motley Fool Australia. –

Some ASX dividend shares have created a long-term record of consecutive annual dividend increases.

Businesses that keep growing their dividend may be attractive for investors looking for sources of income that may be able to keep up with inflation.

Here are two ASX dividend shares that could be interesting for income:

APA Group (ASX: APA)

APA is a large energy infrastructure business with a major gas pipeline network around Australia.

It also has assets relating to gas storage, gas energy generation, gas processing, solar farms, and wind farms.

The business has grown its distribution every year for more than the past decade and a half.

In FY22 it’s expecting to grow the annual distribution by another 3.9% to 53 cents per share. That would bring the distribution yield to 4.6% per security at the current APA share price of $11.56.

The business is steadily expanding its portfolio of projects. For example, it’s investing around $250 million of capital on the Kurri Kurri lateral pipeline to the Hunter power project with the ability to deliver blended hydrogen to the receipt station.

Another example is the $40 million of capital it’s investing in the Gruyere hybrid energy microgrid which is a combined gas, renewable energy, and battery storage solution.

It is steadily growing its cash flow. Nearly all of APA Group’s contracts have income linked to inflation, which is elevated right now.

APA’s cash flow is funding the rising distribution from the ASX dividend share. In the FY22 half-year result, APA’s free cash flow rose by 22.6% to $515.1 million.

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

Soul Pattinson is a large investment house that has been operating for more than a century.

It has a portfolio of various ASX shares and private businesses.

Some of the largest positions in the portfolio include TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Pengana Capital Group Ltd (ASX: PCG), BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), and Commonwealth Bank of Australia (ASX: CBA).

Some of the private businesses it’s invested in include Ampcontrol, swimming schools, financial services, agriculture, resources, and luxury retirement living.

The ASX dividend share pays out part of its annual cash flow each year, which comes from its portfolio’s dividends and distributions. The company said its dividend payout ratio in the first half of FY22 was 57.32% as a percentage of regular operating cash flows.

Soul Pattinson has grown its annual dividend every year since 2000. This is the longest dividend growth streak on the ASX.

At the current Soul Pattinson share price of $27.81, it has a grossed-up dividend yield of 3.3%.

The post 2 ASX dividend shares that keep giving investors pay rises appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Here’s why the APA share price is in the green today
How big is the APA dividend yield going to be in 2022?
Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
Soul Pattinson share price rises after electric deal for Ampcontrol
3 ASX companies that can raise prices whenever they want

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended APA Group, Brickworks, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Macquarie Group Limited and TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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.

  • This field is for validation purposes and should be left unchanged.

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 - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!