It's getting harder to find good sources of income these days with banks offering a very pitiful interest rate on money in the bank. The best rate you can find these days is between 2.8% to 3%, depending on the bank and its rules.
Shares are the only game in town to generate good income, which is why income investors would be well suited to look at some shares on the ASX.
However, just because something has a big yield doesn't mean it's necessarily good.
Here are two options I think dividend investors should be interested in:
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is one of the oldest companies trading on the ASX, having operated for over 100 years.
It's an investment conglomerate that makes tactical investments into other businesses to generate good returns. It has large stakes in businesses like TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW) and Australian Pharmaceutical Industries Ltd (ASX: API).
The investment team at Soul Patts have beaten the index over the long-term whilst delivering an ever-increasing dividend stream. It has increased its annual ordinary dividend every year since 2000.
It's currently trading with a grossed-up dividend yield of 4.39%.
WAM Leaders is one of the largest listed investment companies (LICs) run by Wilson Asset Management. This LIC focuses on just the large end of the Australian share market, which means it might be able to offer slightly less volatile returns compared to the other WAM LICs.
It's steadily growing its profit reserve and has outperformed its benchmark since inception.
It's currently trading with an expected grossed-up dividend yield of 6.1%.
Foolish takeaway
I'm a fan of both of these companies. If I had to choose one, it would Soul Patts because it has a great history of paying dividends through wars and recessions.
