When it comes to ASX dividend shares, there are few more 'old-school' than Washington H. Soul Pattinson and Co Ltd (ASX: SOL). Soul Patts, as it's more easily known, has been around in some form since the 1870s. But it only became the public company we know today in 1903 – just two years after the Australian federation.
Since then, it has continued to run the chain of pharmacies it was originally founded on. But these days, it is far more well known for its huge portfolio of other ASX shares that it runs on behalf of its investors.
Soul Patts has stakes in a range of other ASX businesses. These include TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), and New Hope Corporation Limited (ASX: NHC), among others. Its portfolio was recently expanded when Soul Patts acquired the listed investment company (LIC) Milton Corporation.
Soul Patts aims to invest in these, and other businesses, for the long-term gains of shareholders. As such, many investors find it to be a boring company. But not Motley Fool analyst Ed Vesely.
Vesely recently graced The Motley Fool's YouTube channel for our Stock of the Week series. In the latest episode, Vesely dug into Soul Patts with the Fool's chief investment officer Scott Phillips.
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Motley Fool analyst Ed Vesely on Soul Patts
Here's some of why Vesely loves Soul Patts right now:
[Soul Patts] has an incredible track record, going back 119 years … that tells me a lot about the management style, they really care about the shareholder … We like the fact that they take a very, very long term view … They're investors, but it's not lazy investing … The company invests in a range of assets that are not only diversified but to a large degree uncorrelated, and I think this is a real key to why I think it can outperform over the long run. The long-term approach is where I think wealth can be generated.
Vesely also likes the recent Milton takeover, saying it increases Soul Patts' scale. He also loves the fact Soul Patts has one of the best dividend records on the ASX. He points out that the company has maintained or increased its dividend every year since at least 1987, with consecutive annual increases since 2000.
Vesely concluded by calling Soul Patts a stock you can put in the bottom drawer, and not worry about too much. That might sound pretty good to many investors out there.
So that's why Motley Fool analyst Ed Vesely loves Soul Patts shares today.
At the current Soul Patts share price, this ASX 200 share has a market capitalisation of $3.9 billion, with a dividend yield of 2.26%.
