The coronavirus outbreak is causing falls on the ASX and on the international share markets.
Investors who are mainly interested in income may be a bit worried when it comes to shares like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP). There is a fair chance that their dividends may be reduced over the next 12 months.
A way to give better income security could be to go for shares that have consistently grown their dividends year after year. If the dividend is going up it's not going down (duh).
Here are three dividend shares increasing their payments like clockwork:
APA Group (ASX: APA)
APA is one of the largest infrastructure businesses on the ASX.
APA Group 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). It owns, or manages and operates, a portfolio of assets worth more than $21 billion and delivers half the nation's natural gas usage.
Energy will continue to be very important during this outbreak and beyond, so APA's assets will be integral for a long time to come. It funds its distributions just from its cashflow generation.
APA continues to invest in more growth projects which will generate further cashflow for the business.
It has increased its distribution each year over the past 15 years and it currently has a distribution yield of 4.6%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts may be the best business of all for consistent dividend growth. It has grown its dividend every year since 2000. It has paid a dividend every year in its existence since 1903. That's some record.
One of Soul Patts' main aims is to grow the dividend for its shareholders, so I think it will keep doing that. It has the profit reserves to do it and a very large franking credit balance.
Its investment portfolio is defensive with uncorrelated and diverse assets. Its biggest holding is TPG Telecom Ltd (ASX: TPM) – everyone needs to keep paying their telco to keep the internet on, which is particularly important during this outbreak. The dividends will keep flowing to TPG to Soul Patts, then to Soul Patts shareholders.
It currently has a grossed-up dividend yield of 4.3%.
Ramsay Health Care Limited (ASX: RHC)
The private hospital operator is another ASX share with a dividend growth streak that goes back to 2000.
Ramsay has a large network of hospitals across Australia and Europe. Hopefully the hospitals are not needed for COVID-19 patients, but Europe now seems to be one of the main places where the coronavirus is being detected.
Forgetting the outbreak, the ageing population is a long-term tailwind for Ramsay and it will keep investing into new hospitals and expanding existing ones.
Ramsay has a grossed-up dividend yield of 3.5%.
Foolish takeaway
All three of these shares have consecutive dividend growth streaks going back at least 15 years. My preferred pick would be Soul Patts for its diversified asset base, but Ramsay also has good prospects of increasing its dividend for many years to come as well.
