Are you looking for ASX dividend shares to boost your income? There could be some ideas to consider in this article:
Pacific Current Group Ltd (ASX: PAC)
Pacific Current has a grossed-up dividend yield of 8.1%.
In FY20 it grew its dividend by 40% to $0.35 per share on the back of underlying earnings per share (EPS) going up by 18% to $0.51.
It generates earnings by making investments into quality fund managers around the world and benefiting from growth in funds under management (FUM) of those managers. In FY20, FUM grew 62% to $93 billion, largely thanks to fund manager GQG.
For the quarter to 30 September 2020, the ASX dividend share’s FUM went higher by 14% to $106.4 billion, again GQG was the main contributor for growth.
Dean Fremder of Perpetual Limited (ASX: PPT) said when Pacific Current shares were a bit lower: “The stock’s really cheap. It is on nine times earnings. It’s growing earnings at double digits, so more than 10% a year. It’s paying a 6.5% fully franked yield. And most excitingly, we think they can pay out a much larger portion of their earnings as dividends. We see no reason, given the surplus franking credits they have on the balance sheet, they can’t be paying a 10 or 11% fully franked yield in the next 12 months. So, really excited about that one.”
According to Commsec, it’s valued at 9x FY23’s estimated earnings.
Brickworks Limited (ASX: BKW)
Brickworks has a grossed-up dividend yield of 4.3%.
The ASX dividend share hasn’t cut its dividend for over 40 years. The dividend is supported by its non-construction assets.
Brickworks owns approximately 40% of investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Soul Patts has plenty of different listed and unlisted investments. Some of the holdings on the ASX are TPG Telecom Ltd (ASX: TPG), Brickworks itself, New Hope Corporation Limited (ASX: NHC), Australian Pharmaceutical Industries Ltd (ASX: API), Milton Corporation Limited (ASX: MLT), Bki Investment Co Ltd (ASX: BKI) and Palla Pharma Ltd (ASX: PAL). Unlisted investments include financial services, resources, agriculture and swimming schools. Soul Patts has increased its dividend per share to Brickworks every year since 2000.
The other asset that funds Brickworks’ dividend is its 50% stake of a joint venture property trust with Goodman Group (ASX: GMG). This trust builds quality industrial properties for tenants on the excess land that Brickworks no longer needs. The latest property being built is a huge, high-tech warehouse for Amazon. When the Amazon warehouse, and one for Coles Group Ltd (ASX: COL), is completed it’s expected to push the gross assets of the trust up above $3 billion and increase the rental profit distributions by at least 25%.
As a bonus about Brickworks for ASX dividend share investors, the Australian construction sector is starting to recover from COVID-19 impacts. However, the US construction industry is still struggling.
APA Group (ASX: APA)
APA owns a large network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets and delivers half the nation’s natural gas usage.
The energy infrastructure giant funds its annual distribution from the operating cashflow, which grows as more projects come online. APA just announced another pipeline project in WA which is expected to unlock more cashflow in the coming years.
At the current APA share price, it has a distribution yield of 5.2%. The ASX dividend share has increased its distribution every year for a decade and a half, which is one of the longest records on the ASX, behind Soul Patts.