Do you want consistently rising income from your portfolio? There are some ASX shares that are raising their dividend like clockwork.
Here are three ASX shares that have consistently raised their dividends (could keep going):
APA Group (ASX: APA)
This infrastructure business has been one of the most consistent dividend payers on the ASX. It has grown its distribution every year for around 15 years.
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). APA owns, or manages and operates, a portfolio of assets worth more than $21 billion and delivers half the nation's natural gas usage.
It's defensive, even in this type of situation, because people will continue to use gas at home for cooking and heating.
The fact that it can keep investing in new projects to unlock more cashflow is also very attractive for long-term income investors. It's why APA has pencilled in a 50 cent per unit distribution for FY20. That translates to a current yield of 4.5%.
Rural Funds Group (ASX: RFF)
Rural Funds may not have one of the longest distribution growth records around – stretching back to 2014 – but I think if it had been listed for 10 years or 20 years, it would have one of the best records.
It aims to grow its distribution by 4% every year for unitholders. This growth is supported by built-in rental indexation with its rental contracts. It has a diverse portfolio of properties including cattle, cotton, almonds, macadamias and vineyards.
The ongoing re-investment of around 20% of rental profit into productivity improvements at the farms adds to future rental growth.
I really like the Rural Funds model and I think it could be one of the most solid income shares over the next decade, particularly if interest rates stay as low as they are.
It currently offers a forecast FY21 distribution yield of 5.8%.
Future Generation Investment Company Ltd (ASX: FGX)
Future Generation is business which has a dividend streak going back to 2015. Remember that its inception was only in September 2014.
It's a listed investment company which invests in the funds of fund managers which invest in ASX shares. Some of its biggest allocations are to funds run by Bennelong, Paradice, Regal and Eley Griffiths. These are meant to be some of the best investment managers in Australia.
They're all working for free so that Future Generation can donate 1% of its net assets each year to youth charities.
At 31 March 2020 Future Generation investment's gross investment performance had outperformed the S&P/ASX All Ordinaries Accumulation Index over the past month, six months, 12 months, three years, five years and since inception.
At the moment it has a decent profit reserve, it's trading at an attractive discount to its net assets and it offers a grossed-up dividend yield of 7.8%.
Foolish takeaway
I really like all three of these dividend shares. I own Future Generation and Rural Funds in my own income portfolio. At the current prices I'd be inclined to invest in Future Generation. I like the discount on offer and I also like the diversification of the underlying assets. The yield is another bonus.
