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2 ASX dividend champions that grow your income every year

There aren’t many shares on the ASX that could be called dividend champions. A lot of ASX shares cut their dividend during the GFC.

However, there are a few out there that have a dividend increase streak going back to before the GFC.

These are the two that have the longest dividend streaks on the ASX:

Ramsay Health Care Limited (ASX: RHC)

Ramsay is the biggest private hospital operator in Australia and one of the biggest in the world, particularly with its European Capio acquisition.

Through a combination of supportive ageing demographics, profit re-investment and acquisitions, Ramsay has managed to increase its dividend every year since 2000.

However, Ramsay is currently facing trouble due to rising living costs for Australians and the unaffordability of private health insurance for younger Australians.

Ramsay is currently trading at 19x FY19’s estimated earnings with a grossed-up dividend yield of 3.8%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is one of the oldest businesses in Australia having operated for over a century.

It’s an investment conglomerate and operates like Berkshire Hathaway. It takes major stakes in ASX listed businesses and also owns some private companies outright.

It has a diverse portfolio with major holdings of businesses like Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API) and New Hope Corporation Limited (ASX: NHC).

Soul Patts can adjust its portfolio to invest in whatever it thinks is the best opportunity. Its this flexibility which has allowed it to increase its annual ordinary dividend every year since 2000.

It’s currently trading at 21x FY19’s estimated earnings with a grossed-up dividend yield of 2.9%.

Foolish takeaway

Both of these businesses are high-quality and have been excellent investments. I wouldn’t call either of them a bargain at today’s prices. I am uncertain what will be the cause of Ramsay picking up growth again, or when, so I’d go for Soul Patts at today’s prices.

Motley Fool contributor Tristan Harrison owns shares of Ramsay Health Care Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks and Ramsay Health Care Limited. 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 Scott Phillips.

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