Income investors all love a fat, fully-franked yield from their ASX dividend shares. While large dividend yields might be good for immediate passive income and cash flow, there is arguably more beauty in a small, but fast-growing dividend yield.
So today, let's look at some ASX dividend shares that perhaps won't immediately catch the eye with their yields, but are growing their dividends at breakneck speeds. Who knows, maybe these shares will be the heavy-hitting dividend payers of tomorrow.
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3 ASX dividend shares with fast-growing payouts
WiseTech Global Ltd (ASX: WTC)
Wisetech shares would be very familiar with ASX growth investors. This logistics tech company has been delighting investors for years on the ASX and even used to be the premier member of the old WAAAX club of ASX growth stocks.
Now right now, Wisetech shares offer a trailing dividend yield of just 0.16%. That's obviously not very impressive on a surface level. But diving deeper reveals something far more striking. Five years ago (over 2018), Wisetech shares gave investors an annual total of 2.7 cents per share in fully-franked dividends. By 2022, this had risen to 11.15 cents per share.
That's an increase of 280% in just four years. Even better, this year's interim dividend of 6.6 cents per share represents a 38.95% rise over the 4.75 cents per share investors received just last year for their interim dividend.
Thus, it's clear that if this kind of growth trajectory continues over the coming years, Wisetech shares won't have a dividend yield of 0.17% for very long.
Altium Limited (ASX: ALU)
Another old WAAAX share, Altium stock is also worth a deeper dive when it comes to dividends. This printed circuit board software company is another unsung hero when it comes to growing its shareholder income. Again, that isn't obvious from a look at the present Altium dividend yield. Right now, Altium shares offer a trailing yield of 1.39%.
But again, we have a company that has been dialling up its dividend dramatically in recent years. In 2018, Altium investors received a total of 27 cents per share in dividends. Last year, that had risen to 47 cents per share, a rise worth just over 74%. And Altium's last interim dividend, worth 25 cents per share, that we saw paid out in March was a 19% jump from the 21 cents per share that investors bagged in March 2022.
Those are the kinds of numbers that any ASX dividend growth share investor would be delighted to see.
Washington H. Soul Pattinson and Co Ltd (ASX: SOL)
Right off the bat, Soul Patts doesn't offer the same kinds of explosive ASX dividend growth rates as Altium or Wisetech shares do. The ordinary dividends this investment house's investors received in 2022 came to 72 cents a share, a respectable, but not mind-blowing, 28.6% rise over 2018's total of 56 cents.
But what Soul Patts shares can offer is an unrivalled dividend growth streak on the ASX, which in my view is more than enough to give this company a spot on today's list.
Washington H. Soul Pattinson is the only ASX dividend share on the entire stock market that can tell its investors it has raised its dividend every single year since 2000.
Today, Soul Patts shares have a 2.45% dividend yield on the table. But, as we covered earlier this year, an investor who bought this share in 2000 would be enjoying a yield-on-cost of roughly 22% today. Enough said.
