There are a few ASX dividend shares that have kept increasing their dividends for shareholders for many years in a row.
Dividends aren't guaranteed. They can be reduced or halted altogether – like we saw during the COVID-19-impacted year of 2020.
But these two have been growing the dividend for some time:
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Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
This business, also known
as Soul Patts, is a diversified investment conglomerate. It has the longest dividend record on the ASX when it comes to dividend increases. Soul Patts has increased its dividend every year since 2000.
The investment conglomerate has also paid a dividend every year since it listed in 1903.
It has a diversified portfolio of a number of different ASX shares. Some of its larger investments include TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Pengana Capital Group Ltd (ASX: PCG), Pengana International Equities Ltd (ASX: PIA), Tuas Ltd (ASX: TUA), Bki Investment Co Ltd (ASX: BKI), Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW) and Bailador Technology Investments Ltd (ASX: BTI).
The ASX dividend share also has an unlisted portfolio of assets and businesses in sectors like resources, financial services, agriculture and swimming schools.
It's this diversified portfolio that pays cashflow up to Soul Patts each year which then allows the business to pay a lot of it out to shareholders, with the rest retained for further investments.
Soul Patts recently launched a takeover offer for Milton Corporation Limited (ASX: MLT). Management believe that this will unlock more unique investments for Soul Patts, including private equity and property.
At the current Soul Patts share price, it has a fully franked dividend yield of 1.85%.
Domino's Pizza Enterprises Ltd. (ASX: DMP)
Domino's is one of the largest food businesses on the ASX. It has a global network of stores in ANZ, Europe and Japan. Indeed, the Japanese market recently saw the 800th store opening.
These stores have been generating same store sales growth for a number of years, pushing profit higher for the ASX dividend share.
The increasing scale of the ASX dividend share is seeing profit rise faster than revenue. In the first six months of FY21, network sales went up 16.5% to $1.84 billion (with online sales increasing 25.4% to $1.42 billion). But earnings before interest, tax, depreciation and amortisation (EBITDA) rose 23.8% to $218.7 million, earnings before interest and tax (EBIT) went up 32.3% to $153 million, underlying net profit grew 32.8% to $96.2 million and free cashflow surged 50.3% to $124.4 million.
That profit growth allowed Domino's to fund a 32.5% increase in the interim dividend to 88.4 cents per share.
The growing size of Domino's has allowed the business to keep growing profit and the dividend.
By 2033, Domino's is looking to grow its overall network to at least 5,550 stores (or more, which I'll get to in a moment). The aim is for Europe to have 2,850 stores, ANZ will have 1,200 stores and Japan will have 1,500 stores.
Domino's also recently announced the acquisition of Domino's Taiwan where there are currently 157 stores and it has plans for more than 400 stores over the long-term. Domino's increased its future store count goal in Asia from 1,500 stores to 1,900 stores by somewhere between 2030 to 2032.
Domino's has a partially franked dividend yield of 1.2%.
