Getting a decent pay rise each year as employees seems to be a thing of the past for most. But by investing in quality companies which grow their dividends over time, we can experience this again.
Many ASX shares have a great history of providing shareholders with more income year after year. Here are three to get you started.
Carsales.com Ltd (ASX: CAR)
I think now could be a great time to pick up shares in this dominant online classifieds business. The Carsales.com platform continues to perform well domestically, and there’s potential for strong growth from its South Korean and Latin American divisions.
Carsales has grown its dividend to shareholders every year since its first dividend in 2010. Shares currently trade on a solid fully franked dividend yield of 4.1%, or 5.8% including franking credits.
Washington H. Soul Pattinson & Co. Ltd (ASX: SOL)
The investment conglomerate continues to perform well and delight shareholders. It’s a very diversified company with interests in mining, telecommunications, building materials and financial services.
In FY18 Soul Patts announced another increase to the dividend as Group Regular Profit after tax climbed by 17.4% over the year. That’s now 18 years in a row Soul Patts has increased the dividend, matched only by Ramsay Health Care Limited (ASX: RHC).
Shares trade on a fully franked dividend yield of 2.2%, or 3.2% including franking credits.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
There’s no question Sydney Airport is a quality company. It’s also been well managed, adding more services, shops, and accomodation options, to make the most of increased tourism numbers.
With strong domestic population growth and increasing numbers of visitors to Australia, Sydney Airport should continue to be a major beneficiary. For shareholders, this should translate into higher income over time.
Sydney Airport has increased the dividend for the last 6 years in a row, and that streak seems likely to continue for a while longer. Shares trade on a yield of 5.6% unfranked.
Motley Fool contributor Dave Gow owns shares of carsales.com Limited, Ramsay Health Care Limited, Sydney Airport Holdings Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended carsales.com Limited 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.