In this era of low interest rates it's not surprising that people are turning to ASX dividend shares to boost their income.
It is crazy to think that you could have $1 million in the bank and be earning less than $30,000, or less than someone working full-time for minimum wage.
The great thing about owning businesses is that as time goes on they will hopefully grow their profit and the dividend. You're not stuck earning the same amount every year.
That's why these three ASX shares are very appealing to me:
WAM Research Limited (ASX: WAX)
WAM Research is one of the best listed investment companies (LICs) on the ASX in my opinion. It has grown its dividend every year since the GFC, which is a great record.
It has handily outperformed the S&P/ASX All Ordinaries Accumulation Index by 6.9% per annum since July 2010 by focusing on smaller growth shares where the investment team can see a catalyst to boost the share price. That strong performance has been whilst holding a high level of cash for protection and opportunities. At the end of February 2019, 32.9% of net assets were cash.
It currently has a grossed-up dividend yield of 9.7%.
Brickworks Limited (ASX: BKW)
Brickworks is a construction product, property and investment business that has maintained or increased its dividend every year since 1976 – which has a fantastic record.
Australia's economy has gone on a great run, which has helped the construction side of things, and Brickworks' stake of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) has performed very well.
Whilst construction may look a bit wobbly in the short-term, Brickworks' recent expansion into the US could turn out particularly well if it can capitalise on the opportunity.
Brickworks has a grossed-up dividend yield of 4.4%.
Arena REIT No 1 (ASX: ARF)
Arena is a real estate investment trust (REIT) that mostly owns childcare centres and leases them to quality tenants like Goodstart Early Learning and G8 Education Ltd (ASX: GEM).
Arena has increased its distribution every year since it started paying one in 2013 because of rental increases and opening additional centres. In the recent half-year result, Arena said it achieved an average rent review increase of 3.1%. It currently has a weighted average lease expiry of 14.2 years, which is one of the longest in the REIT sector.
The REIT currently offers a FY19 distribution yield of 4.8%.
Foolish takeaway
All three of these investments have decent starting yields, solid payment histories and the potential for income growth for many years to come.
At the current prices I would choose Brickworks because the other two are trading at significant premiums to their underlying values, but any of them could be good long-term buy and holds.
