The Motley Fool

3 quality ASX shares raising their dividends like clockwork

In an era where wage growth, interest rates and inflation are so low, I think it could be an idea to look for businesses that are increasing their dividends to shareholders every year to make up for the flat income from work.

Obviously a dividend has to be funded by underlying earnings growth too, some dividends could become unsustainable if they depart from the reality of the underlying business.

Here’s three ASX shares that fit the bill:

Ramsay Health Care Limited (ASX: RHC)

Ramsay is one of the world’s largest private hospital businesses and it has increased its dividend every year since 2000.

This dividend growth could continue thanks to two important elements. The first is that the ageing demographics point to a long and steady growth tailwind for Ramsay as long as the private health system remains viable.

The other is that Ramsay continues to add new hospitals to its network through organic construction of new buildings (and through acquisitions) as well as expanding its existing hospitals.

It currently has a grossed-up dividend yield of 2.9%.

REA Group Limited (ASX: REA)

REA Group is Australia’s largest property real estate portal business which owns sites like and It has increased its dividend each year since 2009.

Owning the number one property portal gives REA Group a lot of pricing power with how integral it is to sell a property. Being number one attracts the most potential buyers, which then attracts the most sellers, which attracts the most buyers and so on.

Over the long-term I’m attracted to the idea of REA Group’s various overseas investments that could turn into sizeable earnings generators.

REA Group currently has a grossed-up dividend yield of 1.7%.

Duxton Water Ltd (ASX: D2O)

Duxton Water is the only company on the ASX which is a pure-play on owning water entitlements and leasing them to agricultural businesses.

The likely long-term growth in water value will help boost the lease income and the price of the water that Duxton Water owns. More frequent drought conditions and higher usage of water by high-value crops such as almonds could be very profitable for Duxton Water.

It aims to increase its dividend every six months and has done so since it started paying a dividend in 2017.

Duxton Water has a forward grossed-up dividend yield of 5.7%.

Foolish takeaway

Each of these businesses are attractive for dividend growth, but I would definitely prefer Duxton Water because of the higher yield and the discount to its underlying value.

Here are some more top-notch ASX shares that are also regularly growing their dividends for investors.

Looking For Income? These 3 Dividend Shares Could Be Great Picks

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. The first two currently offer fat, fully franked yields. The last is a surprising REIT offering you the benefits of being a landlord with none of the hassle! You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. 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 copy right now!

Motley Fool contributor Tristan Harrison owns shares of DUXTON FPO. The Motley Fool Australia has recommended DUXTON FPO, Ramsay Health Care Limited, and REA Group 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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have 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 2.7% 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.