2 ASX 200 dividend heavyweights to buy and hold until you retire

They might not quite be dividend aristocrats, but these two ASX shares come close.

a couple clink champagne glasses on board a private aircraft with gourmet food plates set in front of them. They are wearing designer clothes and looking wealthy.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The US markets have dozens of dividend aristocrats – shares that have raised their dividends for 25 years straight
  • They even have a few dividend kings
  • But here are the closest things to a dividend aristocrat that the ASX has to offer...

A dividend aristocrat is a very special thing. It is typically defined as a dividend share that has increased its annual dividend payouts to investors every year for at least 25 years.

Such a long and steady track record shows that a company is financially stable and strong enough to fork out such a large volume of cash consistently.

Over on the US markets, there are many dividend aristocrats. Some you might have heard of include Caterpillar Inc (NYSE: CAT), Exxon Mobil Corp (NYSE: XOM), and McDonald's Corp (NYSE: MCD).

What's more, is that the US markets also boast quite a few dividend kings. These fabled royals of the share market have a 50-year streak of annually raising their dividends. This list is a lot smaller but includes Coca-Cola Co (NYSE: KO), Colgate-Palmolive Company (NYSE: CL), and Altria Group Inc (NYSE: MO).

Does the ASX offer any dividend aristocrats?

Unfortunately, here on the ASX, we have no dividend aristocrats by the US definition. Let alone dividend kings.

But we do have a couple of ASX dividend heavyweights that come close. And they are two shares that I think any investor could comfortably buy and hold for the long term.

The first is Brickworks Limited (ASX: BKW). Brickworks is a building and construction materials company. But it also has a few other earning streams, including from its lucrative property business.

Brickworks has a strong dividend track record. It hasn't raised its dividend for 25 consecutive years, so we can't call it an official dividend aristocrat.

But what it does have is a 45-year history of not cutting its dividends. In other words, Brickworks has either maintained or increased its annual dividends every year since 1976. Definity heavyweight material.

Soul Patts: 3 years to go

The second is Washington H. Soul Pattinson and Co Ltd (ASX: SOL).

Soul Patts is the closest thing to a dividend aristocrat the ASX has. No, Soul Patts hasn't quite got to 25 years of annual dividend raises. But it has upped its annual dividend every year since 2000. That means it's only three years away from becoming the ASX's first dividend aristocrat.

Soul Patts is a rather interesting company. It functions more as a listed investment company (LIC) than a traditional ASX business, owning large chunks of other ASX shares in a massive investment portfolio.

This it runs for the benefit of its shareholders. Soul Patts' largest holdings include TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC), and Brickworks itself.

But Soul Patts also owns a large and diversified portfolio of ASX 200 shares, thanks to the acquisition of ASX LIC Milton Corporation last year. These include your typical ASX holdings like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA).

Both of these would-be ASX dividend aristocrats have a long history of delivering meaningful returns to their shareholders. And both boast unrivalled dividend records on the ASX, if not yet long enough to qualify for the 'dividend aristocrat' tag.

As such, Soul Pattss and Brickworks are two ASX dividend heavyweights that I would happily buy and hold until retirement and beyond.

Motley Fool contributor Sebastian Bowen has positions in Altria Group, Caterpillar, Coca-Cola, McDonald's, and Washington H. Soul Pattinson And. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson And. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson And. The Motley Fool Australia has recommended Tpg Telecom. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A man with a wide, eager smile on his face holds up three fingers.
Dividend Investing

3 reasons to buy this $28 billion ASX 200 dividend stock today

The ASX 200 stock recently boosted its dividend payout by 27%.

Read more »

A man in a business shirt and tie takes a wide leap over a large steel trap with jagged teeth.
Dividend Investing

Warning: These 2 ASX shares could be dividend traps

A high dividend yield can be deceptive.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

The big 4 ASX bank share that stands above the rest

ANZ's market-leading yield comes with a catch.

Read more »

An Australian farmer wearing a beaten-up akubra hat and work shirt leans on a fence with livestock in the background and a blue sky above.
Dividend Investing

1 ASX dividend stock down 45% I'd buy right now

This is a business offering investors fertile returns.

Read more »

Magnifying glass in front of an open newspaper with paper houses.
Dividend Investing

I rate this ASX dividend stock as a top buy right now

I think this stock could be a leading buy for income today.

Read more »

Happy young couple saving money in piggy bank.
Dividend Investing

Invest $5,000 into these top ASX dividend shares right now

Analysts think these shares could be top picks for income investors.

Read more »

a hand reaches out with australian banknotes of various denominations fanned out.
Dividend Investing

2 Australian dividend shares to buy while they are still dirt cheap

Analysts believe that these shares could be top picks for income investors.

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Dividend Investing

Looking to retire in style? Here are 3 quality ASX passive income stocks that could help

I think these ASX dividend stocks should continue to reward passive income investors.

Read more »