There are few businesses on the ASX that have given shareholders payrises every year since before the GFC.
But, there are only two ASX shares that have been giving payrises every year since 2000, which are these two dividend winners:
Ramsay Health Care Limited (ASX: RHC)
Ramsay is one of the world’s largest private hospital operators with major operations in Australia and Europe. Its European segment has just become significantly larger thanks to its acquisition of Capio, a large healthcare business which has a significant presence in Scandinavia and Germany.
It has managed to increase its dividend every year since 2000 due to its impressive re-investment strategy which results in hospital expansions as well as new hospitals being opened every year.
Recent issues with private health insurance affordability has seen Ramsay’s earnings growth rate reduce significantly, but it may still be able to deliver 2% profit growth in FY19. The private health problems have been reflected in the fall of the Ramsay share price.
Ramsay is trading at 20x FY19’s estimated earnings with a grossed-up dividend yield of 3.6%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is arguably the best investment company on the ASX. It’s been going for over a century and has paid a dividend every year in that time including through wars and recessions. It could be the safest dividend share in Australia.
The investment conglomerate owns some businesses outright and it also has major stakes in other ASX shares like TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW) and Australian Pharmaceutical Industries Ltd (ASX: API).
Soul Patts is currently trading at 19x FY20’s estimated earnings with a grossed-up dividend yield of 3.1%.
Both businesses have been dividend stalwarts for investors. Out of the two, Soul Patts would be my clear favourite because of how diverse its holdings are. I’m fairly confident Soul Patts will be around for the next few decades, with growing dividends for patient investors.
However, Soul Patts is not trading as cheaply as it once did, so there may be better value investment ideas on the ASX.
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, Ramsay Health Care Limited, and TPG Telecom 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.