The Motley Fool

3 very reliable ASX dividend shares

If you rely on dividends to fund your life’s expenses, I would want to make sure they are very reliable ASX dividend shares.

That means I would be focusing on ASX shares that have long-term growth potential, seemingly can grow their dividend and have a solid starting dividend yield.

These are three solid dividend shares on the ASX:

Brickworks Limited (ASX: BKW)

Brickworks is a diversified building materials business which is currently facing a rough time due to the difficult Australian construction conditions. I think it looks more attractive with the share price down 12% over the past month.

It’s an attractive dividend share because it has maintained or grown its dividend every year for decades, with no decreases. Its Property and Investment assets have helped even out its earnings when construction activity wavers.

It currently has a grossed-up dividend yield of 4.7%, and the dividend could keep growing higher if it manages to do well with its US brick manufacturing expansion plans.

Rural Funds Group (ASX: RFF)

Rural Funds is a farmland real estate investment trust (REIT) that leases out vineyards, almonds, macadamias, cotton, cattle and poultry farms to high-quality tenants.

Farmland has been a useful asset for many centuries and should continue to be useful as long as humans get their nutrition from farmland. Inflation and a growing population should help Rural Funds grow its distribution for many years to come.

Rural Funds aims to increase its distribution by 4% a year, driven by rental increases built into its contracts. It currently has a FY19 distribution yield of 4.7%.

Australian United Investment Company Ltd (ASX: AUI)

This is one of the oldest listed investment companies (LICs) on the ASX, it invests in many of the biggest businesses on the ASX like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP). The strength of the Australian economy has helped AUI grow over the past couple of decades.

It has increased or maintained its dividend each year going back to at least FY93, offering reliable income security for shareholders.

AUI has a grossed-up dividend yield of 6.2%, which looks attractive compared to current interest rates.

Foolish takeaway

I expect each of these ASX shares can at least maintain their dividends for many years to come. It would take an Australian GFC for a dividend cut to be on the cards. At the current share prices I think Brickworks looks like the best choice because of the discount to its underlying assets.

These quality ASX shares also pay great dividends and have been rock-solid payers over the years.

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked...

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2019."

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia owns shares of RURALFUNDS STAPLED. 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!