ASX dividend shares raising their dividends like clockwork

Some ASX dividend shares are raising their dividends like clockwork such as Washington H. Soul Pattinson and Co. Ltd (ASX:SOL).
The post ASX dividend shares raising their dividends like clockwork appeared first on Motley Fool Australia. –

fingers walking up piles of coins towards bag of cash signifying asx dividend shares

There are some ASX dividend shares that are growing their dividends like clockwork every year.

Plenty of businesses that were meant to be good dividend shares have cut their income payments to shareholders this year due to COVID-19.

Businesses like Commonwealth Bank of Australia (ASX: CBA), Sydney Airport Holdings Pty Ltd (ASX: SYD) and Transurban Group (ASX: TCL) have all reduced their payments to shareholders.

But there are other ASX dividend shares that continue to grow their dividends year after year:

APA Group (ASX: APA)

It owns a vast 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.

APA pays distributions from its annual cashflow. The cashflow from existing assets is fairly steady and it continues to invest in new projections which will grow cashflow further and fund higher distributions. That makes it a very reliable ASX dividend share.

It has increased its distribution every year for the past decade and a half. At the current APA Group share price if offers a distribution of almost 5%.

Rural Funds Group (ASX: RFF)

Rural Funds is an agricultural real estate investment trust (REIT) which owns a variety of farms including almonds, cattle, cotton, macadamias and vineyards.

The ASX dividend share aims to increase its distribution by 4% every year. It’s able to do this because rental increases are built into all of its contracts. Some of the contracts have a fixed 2.5% annual increase, whilst others are linked to CPI inflation, with market reviews.

I like the strategy that Rural Funds has by investing in productivity improvements at its farms. This increases the farm value as well as unlocking rental income growth potential.

As the landlord, Rural Funds doesn’t take on operational risk. But it does own water entitlements which are available for tenants.

At the current Rural Funds share price it has a FY21 distribution yield of around 5%.

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

Soul Patts is an investment conglomerate that has been operating for over a century, it was listed in 1903.

I think Soul Patts is the gold standard for ASX dividend shares. It has paid a dividend every year in its history including through the Spanish Flu, world wars and recessions. I think it’s a very dependable income payer.

It has actually grown its dividend every year since 2000. That’s the best record on the ASX. The GFC didn’t stop its streak.

Soul Patts has a diversified portfolio of businesses in its portfolio including TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), Clover Corporation Limited (ASX: CLV) and Bki Investment Co Ltd (ASX: BKI).

It’s also invested in unlisted businesses such as financial services, resources, agriculture, swimming schools and Ampcontrol.

Most of the ASX dividend share’s investments pay dividends (and distributions) up to Soul Patts each year. In FY19 Soul Patts paid out around 80% of its net cashflow (after paying for expenses) to investors, whilst keeping the rest to re-invest into more opportunities.

I think many of its largest holdings like TPG, Brickworks, Clover and so on have attractive growth potential.

At the current Soul Patts share price it has a grossed-up dividend yield of 4.1%.

Foolish takeaway

Each of these ASX dividend shares have grown their dividend during COVID-19. They’re very reliable and have potential for long-term dividend growth for many years to come. If I had to pick one it would be Soul Patts for its diversification and ability to invest into new industries.

These 3 stocks could be the next big movers in 2020

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 more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Tristan Harrison owns shares of RURALFUNDS STAPLED and 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, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group and Transurban 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 ASX dividend shares raising their dividends like clockwork 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!