The global share markets are moving like rollercoasters, and the risk of volatility appears to be growing. When things are tumultuous, dividend shares can be the best place to hide.
These shares provide a steady income and offer the potential for capital appreciation.
What's even better is finding those ASX dividend shares whose dividends keep on growing year after year.
Here are three such ASX shares, all with consistent dividend growth and fully franking dividends, making them attractive options for investors seeking stability and growth.
Steadfast Group Ltd (ASX: SDF)
The first company is the insurance brokerage firm Steadfast Group. Founded in 1996, Steadfast has grown to become the largest general insurance broker network in Australasia, with more than 480 brokerages servicing more than 2 million policies annually.
As the business continues to expand, Steadfast's earnings have steadily increased. In FY23, the company reported a 14.6% growth in its diluted earnings-per-share (EPS) to 20.15 cents.
Management believes the EPS growth will accelerate in FY24, guiding for a 16% to 17% growth, based on solid trading performance to May 2024.
Solid earnings growth has sustained increasing dividend payments over the last decade, climbing from 6 cents in FY16 to 15.75 cents in the past 12 months.
While this translates into a dividend yield of just about 2.5% for now, if history is any guide, the dividends are very likely to continue growing as long as the company continues to grow.
Washington H Soul Pattinson & Company Ltd (ASX: SOL)
Next up is Washington H Soul Pattinson, often called Soul Patts.
Founded in 1903, the company has a long history of delivering consistent returns to its shareholders through a diversified portfolio of investments.
Originally a pharmacy business, Soul Patts has evolved into a dynamic investment house with interests in various industry sectors, including telecommunications, resources, building materials, financial services, and healthcare.
Soul Patts is known for its conservative and long-term investment strategy, which has helped it weather various economic cycles and market conditions. As of January 2024, the company's net asset value had grown to $11.5 billion.
Backed by its strong cash flow generation, the company has increased its dividends for 24 consecutive years! That is a record to keep.
Over the last 12 months, its dividend per share (DPS) was 91 cents, implying a dividend yield of 2.7%.
Brickworks Limited (ASX: BKW)
Last but not least, we have Brickworks, which is a manufacturer of bricks and other building materials on the outside but moonlights as a property developer.
Brickworks manufactures and distributes building products in Australia and North America.
In addition to selling bricks, masonry blocks, pavers, roofing tiles, and more, the company has also ventured into property development projects. Brickworks is currently collaborating with Goodman Group (ASX: GMG) in two joint ventures focused on developing industrial properties.
If you're enthusiastic about property investment as much as you are about shares, Brickworks could be a way to achieve both purposes in one investment choice.
In fact, Brickworks' property division is growing so fast that its net asset value (NAV) reached $1.95 billion in December 2023. This represents more than half of its reported shareholders' equity of $3.5 billion and about 35% of the "total inferred asset backing", which management estimates to be $5.6 billion.
Similar to Soul Patts — the two companies own some shares of each other — Brickworks has an excellent track record as a consistent dividend payer. The last time the company cut its dividends from the previous year was in 1976.
Brickworks' dividend yield of 2.4% today may seem unimpressive, but it's important to note that its dividends tend to increase annually. Therefore, time is on your side, which is good news for long-term investors.
