There aren’t too many ASX 200 dividend shares that I think are worth buying for income, but I think the two shares in this article are good options.
Shares like Telstra Corporation Ltd (ASX: TLS) have shown that simply going for the biggest dividend yields with limited growth prospects is not a great idea for consistent or growing income.
That’s why I’m attracted to the following two shares:
Brickworks Limited (ASX: BKW)
Brickworks is one of the largest building products businesses in Australia. Some of the products that it offers are bricks, precast concrete panels, pavers, roofing tiles and timber products.
It also has a major holding of the investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).
Brickworks recently bought one of the larger brick businesses in the US called Glen Gery, which opens up another avenue of growth for the company.
Over the past two decades it has been one of the most reliable dividend payers on the ASX. It has maintained or increased its dividend each year since 1999. It currently has a grossed-up dividend yield of 4.6%.
InvoCare Limited (ASX: IVC)
InvoCare is Australia and New Zealand’s largest funeral operator. That may seem morbid, but it has been a great investment for shareholders. Over the past 15 years the share price is up nearly 500% due to organic growth and acquisitions.
The dividend has increased every calendar year since 2006, which provides excellent income security.
Its share price has fallen about 37% since its all-time high due to price competition worries, a lower death rate and its renovation plans.
I think the renovation plans are actually a good idea. It’s brightening up all of its locations to be celebratory and modern, which is what families want. This could lead to sustainable earnings per share (EPS) growth of 10% per annum according to management.
InvoCare currently offers a trailing dividend yield of 5.7%.
I believe both Brickworks and InvoCare can grow their dividends for many years to come due to the sectors they operate in and long-term focus of management.
They aren’t the only good dividend stocks out there, this top ASX income idea just grew its dividend by 20% last year.
Our top dividend stock pick for 2019 currently boasts a 5.4% dividend yield (fully franked). I believe it’s a perfect fit for a well-diversified, income-focused portfolio.
Even better, this yield comes attached to an attractive and still-growing business which could keep expanding throughout Australia and New Zealand for years to come. With disciplined management, and a long track record of building wealth for shareholders, this company is a serious candidate for any income-minded investor’s portfolio.
Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.
Motley Fool contributor Tristan Harrison owns shares of InvoCare Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks and InvoCare 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.