I think that there are a number of ASX dividend shares that you should never sell.
The benefit of owning shares is that every year those businesses earn profit and then they can pass that on to shareholders with dividends (or distributions). When you've found a good income idea I think it makes sense to hold onto it for the long-term.
However, just because a business pays a dividend doesn't mean it's automatically a buy. We've seen dividend cuts from ASX income shares in recent years like Telstra Corporation Ltd (ASX: TLS) and National Australia Bank Ltd (ASX: NAB).
With that in mind, here are five ASX dividend shares that would make great long-term holdings. I believe you should never sell them:
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
I think Soul Patts is the gold standard for ASX dividend shares. It has a grossed-up dividend yield of 4.1% at the current Soul Patts share price. It's an investment conglomerate that has increased its dividend every year since 2000. And it has paid a dividend every year since it listed in 1903.
It's invested in a variety of different industries like telecommunications, property, building products, pharmacies, agriculture and listed investment companies (LICs).
I think it's a very defensive idea that can continue to fund higher dividends for shareholders as it receives bigger investment income from its holdings.
Brickworks Limited (ASX: BKW)
Brickworks is another great business for dividends. It has a grossed-up dividend yield of 4.6% at the current Brickworks share price.
The ASX dividend share hasn't cut its dividends for over 40 years That's wonderfully reliable. Brickworks actually owns a large chunk of Soul Patts shares, which is a large reason why its dividend has been so reliable over the past few decades because the investment provides steady earnings compared to the variable earnings of building products.
It also has a 50% stake of an industrial property trust which is steadily growing its rental profit and valuation. It will soon have Amazon and Coles Group Limited (ASX: COL) as tenants at two large distribution warehouses.
Rural Funds Group (ASX: RFF)
Rural Funds is one of the most consistent ASX dividend shares out there. It has a FY21 distribution yield of 5.1% at the current Rural Funds share price.
Rural Funds, the farmland real estate investment trust (REIT), aims to increase its distribution by 4% every year. It has achieved this thanks to the help of contracted rental growth, a diversified farm portfolio, property improvements (to unlock more rental income) and the occasional acquisition.
It has grown its distribution by (at least 4%) per annum over the past several years since it listed.
APA Group (ASX: APA)
APA is a very defensive ASX dividend share. It has a FY20 distribution yield of 4.8% at the current APA share price.
The gas infrastructure giant has steadily grown its distribution every year over the past decade and a half. It has one of the best consecutive growth records on the ASX.
There is reliable demand for its large national gas pipeline, which generates reliable annual cashflow. New projects continue to progressively come online, boosting its overall profitability. FY21 guidance seems to have disappointed investors a little, giving income investors the chance to buy at a higher starting yield.
WAM Microcap Limited (ASX: WMI)
WAM Microcap is a listed investment company (LIC), I think it's a great ASX dividend share. It has an ordinary grossed-up dividend yield of 5.6% at the current WAM Microcap share price.
It invests in growth businesses with market caps under $300 million. WAM Microcap has performed very strongly, with gross portfolio returns of 17.8% per annum since inception in June 2017.
That investment performance has been funding growing ordinary dividends and special dividends. It now has a profit reserve big enough to fund the existing dividend for a few years.
Foolish takeaway
I think each of these ASX dividend shares will be able to provide good, hopefully growing, dividends for many years to come. I think WAM Microcap could be the one to deliver the strongest total shareholder returns due to its exciting underlying investments. However, Soul Patts could provide the most reliable dividend over the next decade.
