I'm always on the lookout for quality businesses that have the aim and history of increasing their dividends for shareholders like clockwork.
Sometimes a business just can't keep increasing the dividend any more due to underlying business performance, but I think there's a few ASX dividend shares that could keep increasing for years to come:
Duxton Water Ltd (ASX: D2O)
Duxton Water is a unique listed company due to the fact that its only business activity is just to own water entitlements and lease them out to agricultural businesses.
The recent dry weather has certainly boosted the value of water, but it could keep going up over time as high water demand crops like almonds can afford to pay a higher price. Duxton Water benefits from the water lease income and the increasing value of water rights.
Every six months Duxton Water has increased its bi-annual dividend by 0.1 cents from 2.3 cents per share to an expected 2.7 cents per share and 2.8 cents per share over the next 12 months.
That means the grossed-up forward yield is 5.4% over the next year, which is solid.
Ramsay Health Care Limited (ASX: RHC)
The large private hospital operator is only one of two ASX businesses to increase its annual ordinary dividend every year since 2000.
The ageing population of Australia and Europe is an excellent tailwind to benefit from, although Ramsay will have to contend with the contentious issue of private health insurance affordability if more young people leave the system. Even so, with Labor not winning the election there will be no limit on the premiums increasing.
With more of the business focused in Europe these days, Ramsay has plenty of avenues to re-invest for future growth of profit and dividends.
It currently offers a grossed-up dividend yield of 2.9%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is the other business that has increased its annual ordinary dividend every year since 2000 and it's one of my favourites.
Its investment conglomerate style means that it can invest in any business (listed or unlisted), property or anything else it thinks could make a solid return for its shareholders.
Having already paid a dividend every year since its inception over a century ago, it could be described as the best dividend share on the ASX, even if some of its largest holdings don't have the best growth prospects at the moment.
It currently has a grossed-up dividend yield of 3.6%.
Foolish takeaway
Each of these businesses have excellent dividend potential. However, at the current prices I am only truly drawn to Soul Patts, the strong run up of water prices puts me off Duxton Water at the moment – a wet year could be a better opportunity to buy Duxton Water shares.
