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3 ASX shares raising their dividends like clockwork

One of the most enjoyable things about owning shares is receiving a growing stream of dividends for no additional work by us as shareholders.

Dividends that grow quicker than inflation means we are steadily getting more purchasing power from our shares.

Not every ASX share raises their dividends like clockwork, but the below businesses are:

Ramsay Health Care Limited (ASX: RHC)

Ramsay is one of the world’s biggest private hospital operators with significant operations in Europe and Australia. It is benefiting from the ageing demographics of the western world and continues to open and expand hospitals.

Ramsay has increased its dividend every year since 2000 which has been very easily funded by its steadily increasing earnings per share (EPS).

It currently has a grossed-up dividend yield of 3.25%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is an investment business that invests in a variety of businesses including TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW) and Australian Pharmaceutical Industries Ltd (ASX: API).

Its long-term investment philosophy has worked very well and its dividend is funded by just the cashflow it receives. It has grown its annual ordinary dividend every since 2000. Indeed, it has paid a dividend every year for over a century, including through wars and recessions.

It currently has a grossed-up dividend yield of 3.4%.

Bapcor Ltd (ASX: BAP)

Bapcor is Australia’s largest auto parts business which operates the Burson and Autobarn networks in Australia.

It is generating solid same store sales growth from its two leading brands whilst expanding profit margins and adding additional stores to the network.

Bapcor’s profit continues to grow year after year and this helps give the Bapcor board the confidence to grow the dividend each year as well. In-fact the dividend payout ratio has been decreasing, making the dividend look more sustainable and allowing for more profit re-investment.

Bapcor is currently trading with a grossed-up dividend yield of 4%.

Foolish takeaway

Each of these businesses are very good ideas for dividends, but out of the three I would much rather own Soul Patts because of its diversified portfolio and the ability to change its assets if it wanted to.

However, this top ASX dividend stock could be the best dividend bet of all with large increases.

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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Bapcor and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks 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.

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