Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), or Soul Patts, is an investment conglomerate business with a market capitalisation of $4.35 billion.
I think Soul Patts is one of the best dividend stocks on the ASX for the following reasons:
Diverse holdings
Soul Patts has a variety of holdings in its portfolio including large stakes of businesses such as TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC) and Australian Pharmaceutical Industries Ltd (ASX: API).
Having a diverse group of large holdings allows Soul Patts to invest in whatever business it thinks is the best value at the time. It isn't as diverse as an index fund, but it's only concentrating on businesses it thinks will provide good returns for shareholders.
Long-term management
There aren't many companies on the ASX that have management as aligned as Soul Patt's management.
The company has been served by five generations of the Pattinson family and three generations of the Dixson, Spence, Rowe and Letters families. They have significant share holdings in the company and are all aiming for its success.
Growing dividend
Soul Patts has grown its ordinary annual dividend every year since 2000, including through the GFC.
Not many companies on the ASX can point to this type of dividend strength. It's creating the increasing income completely organically too, it's only paying out 77.9% of its regular operating cash flows, which doesn't include any gains in its asset values.
The company has been listed on the ASX since 1903 and has paid a dividend every year for many decades.
