The two ASX dividend shares in this article have both been paying steady passive income to investors over the last few years.
COVID-19 was not enough to stop the shareholder payout increases because of the makeup of their portfolios.
Plenty of ASX dividend shares cut their dividends during 2020 because of the disruptions caused by the global pandemic and the economic impacts. Commonwealth Bank of Australia (ASX: CBA) and Sydney Airport Holdings Pty Ltd (ASX: SYD) were two companies to cut their shareholder payouts.
But these two have a record of dividend growth:
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Charter Hall Long WALE REIT (ASX: CLW)
This is a real estate investment trust (REIT), as the name suggests, which owns commercial property across a variety of sectors.
It has a diversified property portfolio. Many of its largest tenants are listed businesses in Australia (or elsewhere) such as: Telstra Corporation Ltd (ASX: TLS), BP, Endeavour Group Ltd (ASX: EDV), Inghams Group Ltd (ASX: ING), Coles Group Ltd (ASX: COL), David Jones, Metcash Limited (ASX: MTS), Myer Holdings Ltd (ASX: MYR), Wesfarmers Ltd's (ASX: WES) Bunnings and Suez.
The largest tenant by income is actually 'government' entities such as the federal government, the NSW government, the Queensland government and so on.
Its portfolio of 467 properties has an occupancy rate of around 98% and is worth around $5.5 billion. The ASX dividend share has a weighted average lease expiry (WALE) of 13.2 years.
Charter Hall Long WALE REIT pays shareholders a distribution payout rate of 100% of its rental operating earnings per share (EPS), leading to an elevated yield.
At the current Charter Hall Long WALE REIT share price, the ASX dividend share offers a FY22 distribution yield of around 6.2%. It's currently rated as a buy by the broker Citi.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is one of the oldest ASX shares around. It was listed in 1903 and has been going ever since.
It now has a diversified portfolio of many different businesses including Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC), Bki Investment Co Ltd (ASX: BKI), Pengana Capital Group Ltd (ASX: PCG), Pengana International Equities Ltd (ASX: PIA), Clover Corporation Limited (ASX: CLV), Australian Pharmaceutical Industries Ltd (ASX: API), Tuas Ltd (ASX: TUA) and more.
Soul Patts also has a number of unlisted assets and businesses such as an agriculture portfolio, its Round Oak Minerals business, Aquatic Achievers (swimming schools) and financial services (such as Contact Asset Management and Ironbark Asset Management).
These investments pay distributions and dividends to Soul Patts, providing it with cashflow. After paying for its operating expenses, Soul Patts then pays out a majority of the net cash out as a growing dividend. The rest of the cashflow is retained to invest in more opportunities.
The ASX dividend share has grown its dividend every year since 2000, making it the company with the longest dividend growth streak on the ASX.
At the current Soul Patts share price, it has a grossed-up dividend yield of 2.7%.
