A handful of S&P/ASX 200 Index (ASX: XJO) shares have been growing their dividend for a number of years.
Some businesses have seen their profit and cashflow increase over the years, which then allows the leadership to pay larder dividends.
Here are two ASX 200 shares that have been successful at increasing their dividends over the last several years:
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APA Group (ASX: APA)
APA describes itself as a leading Australian energy infrastructure business. Its gas transmission pipelines span every state and territory on mainland Australia, delivering approximately half of the nation's gas usage.
The business has direct management and operational control over its assets and the majority of its investments. It has a number of gas pipelines around the country. It's also one of Australia's largest owners and operators of renewable power generation assets, with wind and solar projects across Western Australia, South Australia and Queensland.
It recently announced its first hybrid energy project at the Gruyere Gold Mine in WA, combining solar energy with battery energy storage.
APA also announced the expansion of its east coast grid due to strong customer demand for transportation capacity. The expansion will be delivered in two stages and at a capital investment of around $270 million. It will increase winter peak capacity of the east coast grid by 25%. This will help transport gas from northern gas producers to southern markets.
In FY21 the ASX 200 share is paying a total distribution of 51 cents, which was an increase of 2% compared to FY20.
APA has grown its distribution every year for over a decade and a half. Based on FY21's payout, it has a distribution yield of 5.6%.
JB Hi-Fi Limited (ASX: JBH)
JB Hi-Fi is one of the largest retailers in Australia.
It owns JB Hi-Fi, which is one of the leading retailers of technology and consumer electronics. But it also owns The Good Guys, a leading retailer of home appliances and consumer electronics.
The combined business aims to have the in-demand brands, with a big range and low prices. It also wants to provide exceptional customer service provided by passionate, knowledgeable team members. JB Hi-Fi also wants to serve customers through multiple channels – in-store, online, phone and commercial.
JB Hi-Fi aims to have a few strong competitive advantages including its scale, low cost operating model, quality store locations and its supplier partnerships.
The ASX 200 dividend share has increased its dividend in consecutive years over the last several years. In the first half of FY21, it grew its interim dividend by 81.8%, representing 65% of net profit after tax (NPAT).
JB Hi-Fi said that the board will continue to regularly review its capital structure with a focus on maximising returns to shareholders and maintaining balance sheet strength and flexibility.
Credit Suisse currently rates JB Hi-Fi as a buy, with a price target of $57.39.
