The job of being a dividend investor is getting harder these days.
Some of the favourites like Telstra Corporation Ltd (ASX: TLS) and G8 Education Limited (ASX: GEM) have reduced their dividends.
The big banks like Commonwealth Bank of Australia (ASX: CBA) seem to be under siege from all sides with growth a distant memory.
Some of the genuine strong dividend stocks like Sydney Airport Holdings Ltd (ASX: SYD) and Transurban Group (ASX: TCL) are trading at expensive levels, particularly with interest rates predicted to continue rising.
So, what's a dividend investor to do?
Well, listed investment companies (LICs) are an option, but most of those are trading expensively too.
I think that Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) could be the dividend choice that investors need.
The first thing to look at is of course, the dividend. It's currently sitting at 4.6% grossed-up, which is comfortably higher than the interest rate you can get at a bank.
The other main thing I love about the dividend is that it has been increased every year since 2000, even through the GFC. That's a great record and shows the management's willingness and effort to increase the dividend every single year, as long as it remains prudent to do so.
In-fact, Soul Patts has paid a dividend every single year including through wars.
I also like Soul Patts' long-term focus. It has management from families that are in their third or fourth generation of serving the company. Those families also own a lot of Soul Patts shares, meaning management are extremely aligned to shareholders because they are shareholders themselves.
The investments that Soul Patts makes are for the long-term too. The investment conglomerate house buys stakes of businesses with the intention of holding for a long time, which gives it the best chance to generate long-term returns. Investments in companies like TPG Telecom Ltd (ASX: TPM) should work out in the long run.
Foolish takeaway
Soul Patts has outperformed the ASX over long time periods like 10 years and 15 years whilst delivering a growing stream of fully franked dividends. I think it's the most reliable dividend stock out there, which is why I'm a shareholder.
