A handful of ASX dividend shares are building a reputation for consistent growth of the dividend.
During the first year of COVID-19, there were plenty of ASX shares that cut their dividends, including names like Commonwealth Bank of Australia (ASX: CBA), Transurban Group (ASX: TCL) and Woodside Petroleum Limited (ASX: WPL).
But these two ASX dividend shares are proud of the income growth they are providing for investors:
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Brickworks Limited (ASX: BKW)
Brickworks is a leading building products business. It's the market-leading brickmaker in Australia and in certain areas of the US. The company also sells plenty of other building products in Australia including roofing, precast, masonry and so on.
However, the company points to two other divisions that fund the dividend – its shareholding of investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) as well as the 50% it owns of the industrial property trust with Goodman Group (ASX: GMG).
The investment house has a diversified portfolio with many different assets in it, including resources, agriculture, financial services, swimming schools and so on. There are a few investments that account for a significant part of the portfolio including TPG Telecom Ltd (ASX: TPG), Brickworks and New Hope Corporation Limited (ASX: NHC).
Soul Pattinson provides a growing stream of dividends to Brickworks. Its underlying asset value is climbing over the long term as well.
The industrial property trust, which builds quality properties on excess Brickworks land, is seeing accelerating demand due to online shopping. According to Brickworks, there is an increasing importance of well-located distribution hubs and sophisticated supply chain solutions.
In order to meet the strong customer demand, development activity within the property trust has continued at a fast pace. It's expecting substantial rental profit and valuation gains from the completion of the planned properties, which can help the ASX dividend share.
Brickworks plans to release another 75 hectares of land into the trust, extending the development pipeline.
The trailing grossed-up dividend yield is 4% at the current Brickworks share price. Brickworks hasn't cut its dividend for over 40 years.
It's currently rated as a buy by the broker Citi, with a price target of $25.
Charter Hall Long WALE REIT (ASX: CLW)
This ASX dividend share is a real estate investment trust (REIT) that owns a diversified portfolio of properties across several sectors including agri-logistics, hospitality, convenience retail, diversified long weighted average lease expiry (WALE), industrial and logistics, office and social infrastructure.
It has designed the portfolio to generate rental growth from government, multinational and national blue-chip tenants within resilient industries.
The thing that all of Charter Hall Long WALE REIT's properties have in common is the long WALE, meaning that it provides a high level of income visibility and stability for investors. In the FY22 half-year result, it reported a WALE of 12.2 years.
The REIT notes that it has a track record of delivering attractive distribution growth. In FY22, it expects its distribution will be at least 4.5% bigger than what was paid in FY21.
It is experiencing organic revenue growth. Part of that is thanks to the 46% of lease rent reviews being CPI-linked, with a 3.3% weighted average increase.
The ASX dividend share's net tangible assets (NTA) was $5.89 at 31 December 2021, up 12.8% from 30 June 2021. The current Charter Hall Long WALE REIT share price is at an approximate 10% discount to its NTA.
It's expecting to pay a distribution of at least 30.5 cents per security in FY22, which translates into a forward yield of at least 5.8%. It has grown its distribution every year since listing several years ago.
It's currently rated as a buy by Citi, with a price target of $5.71.
