If you’re at the stage in your life where you’re living off the income from your investments, you’d want to make sure the dividends are pretty safe.
One of the best ways to insulate yourself from dividend risks is to have a diversified portfolio so that you’re not reliant on one industry like the banks.
These are five ASX share ideas to consider for a diversified dividend portfolio:
Ramsay Health Care Limited (ASX: RHC)
Ramsay is a private hospital operator in Australia and Europe. Its recent acquisition of Capio made it one of the clear leaders in Europe.
Demand for healthcare is likely to be consistent no matter what the local or global economy is doing. We don’t choose when we get sick or need an operation.
Ramsay has increased its dividend every year since 2000 and has the potential to keep increasing its dividend.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Pattinson is an investment business that has been going for over 100 years. The Millner family have done very well at steering the company into long term successful industrial investments. It has a diverse asset base which it receives solid cashflow from.
In the half year report the company increased its dividend yet again. It has increased its annual ordinary dividend every year since 2000.
Bapcor Ltd (ASX: BAP)
Bapcor sells automotive parts, mostly through its two main chains: Burson and Autobarn. During leaner times car owners are more likely to spend on replacing a car part than buying a whole new car.
Although profit growth is slowing, profit is still going up, as is the dividend. Bapcor’s dividend has increased each year since it started paying one in 2015.
Brickworks Limited (ASX: BKW)
Brickworks has three parts to its business. It sells building products, it owns a large stake of Soul Pattinson and it owns a 50% stake of a growing property trust.
This diversified asset base has seen Brickworks’ dividend increase or been maintained every year since 1976.
Australian United Investment Company Ltd (ASX: AUI)
Australian United is one of the oldest listed investment companies (LICs) on the ASX. It has been going for over 60 years.
It makes long term investments in Australia’s blue chips and passes through that income to shareholders in the form of fully franked dividends.
Looking back, it has maintained or grown its dividend every single year since at least FY93.
Summary
Although none of the above shares have a particularly high dividend yield, they all have a history of reliable dividends and have the potential to keep paying even during a recession.
Plus, if you mix it with a few great growth shares then you could get the best of both worlds. Two growth examples are revealed for FREE in the report below.
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Disclosure: At the time of writing Jaz owns shares of Washington H. Soul Pattinson and Co. Ltd, although that could change at any time.
