ASX dividend shares that increase their payouts every year are very attractive to me.
Getting income payments each year is nice, but how good would it be to get a bigger payout every year?
There are a few ASX dividend shares doing exactly that. Dividend growth isn’t guaranteed of course, but there are a few names that have increased the payout every year for at least the last decade.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
WHSP is one of the oldest businesses on the ASX. In my view, it’s also one of the best for people who want to make long-term buy-and-hold investments.
The company operates as an investment house, meaning it has a variety of investments.
If we look at the portfolio, some of its larger investments include energy, resources, financial services, credit, farms and water. It has plenty of other investments.
That diversified, defensive portfolio is producing a lot of reliable cashflow each year for the company to pay a pleasing dividend. Any money not paid out can be reinvested into more opportunities.
Amazingly, the business has increased its normal dividend per share every year since 1998. Plus, it has delivered shareholders a dividend every year for more than 120 years. How’s that for stability?
The dividend yield isn’t that high though, its dividend yield is 3.4% right now, even when the yield-boosting franking credits are included.
Future Generation Australia Ltd (ASX: FGX)
Future Generation Australia is a listed investment company (LIC) that gives investors exposure to a wide array of shares.
With how it’s invested in funds of a number of fund managers, it actually has exposure to over 400 shares, which is more than double the diversification of the S&P/ASX 200 Index (ASX: XJO).
Pleasingly, every fund manager works for free so that Future Generation Australia can fund its philanthropic efforts of giving 1% of its net assets annually. That also means no performance fees.
Its dividend has grown every year since 2015, which is impressive for an ASX share. Its 2026 dividend is expected to come to a dividend yield of 8%, with the franking credits included.
