Brickworks and Soul Patts may be able to provide dependable income.
The post 2 ASX dividend shares that could provide rock-solid income appeared first on The Motley Fool Australia. –
Some ASX dividend shares may be able to provide investors with rock-solid income for the long-term.
Investors may like to know about two businesses that have a long-term record of provider dividend stability for the long-term and it may be sustainable going forward for some time.
Not every business that pays a dividend has a strong focus on being consistent for shareholders. But these two do:
Brickworks Limited (ASX: BKW)
Brickworks has one of the longest dividend records on the ASX, which it is proud to boast about.
At the company’s annual general meeting (AGM), it said:
We are proud to be one of very few S&P/ASX 200 Index (ASX: XJO) companies who have increased dividends to our shareholders during the pandemic and have not needed to raise equity or receive government support payments.
Including FY21’s dividend increase, it has maintained or increased its normal dividend for the last 45 years.
With the Brickworks share price down more than 10% since the Brickworks share price reached a high in September 2021, the trailing grossed-up dividend yield is 3.8%.
Whilst the business says it’s well placed to benefit as the Australian and US construction economies recover, there is one area where it’s expecting significant growth.
The ASX dividend share is a 50% shareholder in an industrial property trust with leased assets of $2 billion and a long development pipeline. Brickworks sells surplus land into the trust at market value, then Goodman funds the infrastructure works, to create serviced land ready for development. Once a lease pre-commitment is secured, the serviced land can then be used as security, with debt funding used to cover the cost of constructing the facilities.
New developments by the trust, such as the new huge Amazon facility, are increasingly sophisticated, with features such as robotics, automation and multi-storey warehousing. The completion of its pipeline of developments will result in an increase in leased assets of around $1.2 billion and gross rent of $50 million within the property trust over the next two years.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is an investment conglomerate that has increased its dividend every year since 2000, so it currently holds the record for the most annual dividend increases on the ASX.
It owns various investments in ASX shares and sectors including TPG Telecom Ltd (ASX: TPG), Tuas Ltd (ASX: TUA), Brickworks, New Hope Corporation Limited (ASX: NHC), Round Oak Metals (resources), agriculture, financial services, a large cap portfolio, a small cap portfolio a private equity portfolio and a property portfolio.
Soul Patts recently acquired the listed investment company (LIC) Milton, which is expected to provide a number of benefits.
Management are expecting greater portfolio diversification and additional liquidity for future investments, higher cash generation from increased portfolio dividends and an experienced and capable investment team will complement its existing capabilities.
Themes that the ASX dividend share is looking at includes health and ageing, energy transition, agriculture, financial services and education.
The post 2 ASX dividend shares that could provide rock-solid income appeared first on The Motley Fool Australia.
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Motley Fool contributor 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 and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.