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Are these the 3 best dividend shares of all time?

Credit: GotCredit

Bki Investment Co Ltd (ASX: BKI) is a $1 billion listed investment company (LIC) which owns a portfolio of stocks which it describes as focussed on “dividend growth”.

The LIC’s aim is to create wealth for its shareholders through an increasing stream of fully franked dividends along with capital appreciation.

In a recent quarterly report, management focussed on the power of owning stocks which provide a growing income stream to shareholders. One interesting fact that was highlighted was that since 2000 of all the companies in the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) only three had managed to increase their dividend every year.

Here’s that very short list:

  1. Ramsay Health Care Limited (ASX: RHC)
  2. Woolworths Limited (ASX: WOW)
  3. Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Great history but what does the future hold?

A fifteen-year track record of regularly increasing the dividend payment is incredibly impressive but as always when assessing the investment merits of a stock it is important to consider the future outlook, not just the stock’s history.

In the case of Ramsay Health Care the dividend outlook is nothing short of exemplary with consensus data forecasting growth from $1.01 per share in FY 2015 to $1.36 per share in FY 2017.

Meanwhile, Soul Patts is also forecast to maintain its record of dividend growth with consensus data expecting total dividends paid to increase from 50 cents per share (cps) in FY 2015 to 54 cps in FY 2017.

The outlook for the supermarket retailer isn’t so rosy, however, with expectations that the board will cut the dividend from $1.39 per share in FY 2015 to just $1.13 in FY 2017.

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Motley Fool contributor Tim McArthur has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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