For most people, investing is all about setting yourself up to be financially independent by the time you retire (or even before if you're lucky). While some people out there are without question trying to play the 'Wolf of Wall Street' game, I think its safe to say the most tried-and-true investing style is slowly accumulating wealth by buying and holding shares for the long term.
So here are two ASX shares that I think are rock solid companies with a strong history of dividend income – making great investments to own for a stress-free life.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
'Soul Patts' is ASX dividend royalty – being one of the only companies to offer a dividend raise every year this century so far. Just this morning, the company released its yearly earnings results, flagging another bump to its final dividend, which will come in at 34 cents per share.
I can't think of a better income track record to help you sleep soundly at night than the one this company is offering. Soul Patts also invests in a range of ASX businesses across different industries – including TPG Telecom Ltd (ASX: TPM) and Brickworks Ltd (ASX: BKW). This diverse portfolio of quality companies ensures that Soul Patts has a reliable earnings base that should stand strong in any kind of economic environment.
Australian Foundation Investment Co. Ltd (ASX: AFI)
Australian Foundation Investment Company (AFIC for short) is one of the oldest listed investment companies on the ASX, founded way back in 1928. The fact that this company has been through the Great Depression as well as World War II should give you great confidence it will help you have a stress-free life.
AFIC is known to be a conservative, steady-as-she-goes kind of company – investing in the biggest and best businesses on the ASX. Some of its current top holdings include the Commonwealth Bank of Australia (ASX: CBA), CSL Limited (ASX: CSL) and BHP Group Ltd (ASX: BHP). It's also heavily focused on dividend income, currently offering a fully franked 3.78% dividend starting yield. While it doesn't have the same enviable payout history as Soul Patts, AFIC was able to hold its dividends steady throughout the GFC back in 2008/09, so I think it's a great company to hold for the long term.
Foolish takeaway
I think an investment in either of these two ASX businesses would offer vast assistance to living a stress-free life. Both offer compelling income history as well as a safe and steady underlying investment portfolio that should be able to weather any economic storms heading our way.
