2020 has been a watershed year for ASX dividend shares. Former dividend stalwarts like the big ASX banks, Transurban Group (ASX: TCL) and Ramsay Health Care Limited (ASX: RHC) have slashed, deferred or cancelled their prized dividend payouts already this year. More companies look set to follow. So where are dividend investors to turn in this Brave New World? Well, I've found 3 ASX dividend shares that have already not just reconfirmed their dividends in 2020, but have increased them. That's a good start!
3 ASX dividend shares increasing their payouts in 2020
1) Fortescue Metals Group Limited (ASX: FMG)
Fortescue has been a pillar of strength in the current dividend scene. Just yesterday, the company announced a final dividend of $1 per share. That means shareholders have received $1.76 per share in dividends for FY2020, which represents a 54% increase over FY19's payout. That's what a company can do when it is able to dig a tonne of iron ore out of the ground for US$12.94 and sell it for US$120 (the rough price of iron ore today). If iron ore prices stay even close to their current levels, Fortescue should be able to keep this train going in FY21 as well. With a dividend of $1.76 per share, Fortescue Metals is offering a trailing yield of 9.45% on current prices.
2) APA Group (ASX: APA)
APA is in the business of providing pipelines for gas distribution. It owns the largest gas pipeline network on the east coast of Australia and is responsible for delivering around half of the country's total gas needs. The great thing about this kind of business is its predictability and defensive nature. Regardless of recessions or pandemics, we all need gas all of the time, whether it's for industrial purposes or just cooking and heating our homes. APA's next dividend will be paid on 16 September and will come in at 27 cents per share. That's a nice increase from last year's final dividend of 25.5 cents per share. On current prices, that gives APA shares a trailing 12-month yield of 4.61%.
3) Rural Funds Group (ASX: RFF)
Our final dividend share is this agricultural real estate investment trust (REIT). Rural Funds invests in farmland, which it rents out to clients for rental returns. Given the extremely defensive nature of farmland (we all need to eat), Rural Funds is able to give its investors a reliable stream of dividend distributions, which it aims to increase by 4% annually. 2020 has not been an exception to this rule with Rural Funds delivering a 4% increase for its 2020 payout to 10.85 cents per share. Just this morning, the company also announced a forecast of an 11.28 cents per share payout for FY2021. That takes confidence in this era of uncertainty and gives me assurance in this business as a solid income payer going forward.
