Do you have some money to invest into ASX shares for dividends?
There are some good contenders to think about for income:
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts has the best dividend record when it comes to consecutive years of dividend increases.
The ASX dividend share has increased its income payment to shareholders every year since 2000. It has also paid a dividend every year since it listed in 1903.
Soul Patts started out as a pharmacy business. It still has an indirect investment in the Soul Pattinson Chemists business through its holding of Australian Pharmaceutical Industries Ltd (ASX: API) shares.
But that isn't the only investment that Soul Patts owns. It now runs as an investment conglomerate, so it has a diversified portfolio across telecommunications, healthcare, property, building products, listed investment companies (LICs), resources, agriculture and financial services.
Those sectors are represented by listed businesses like TPG Telecom Ltd (ASX: TPG), Apex Healthcare, Brickworks Limited (ASX: BKW), Bki Investment Co Ltd (ASX: BKI), Milton Corporation Limited (ASX: MLT), Round Oak Minerals and Pengana Capital Group Ltd (ASX: PCG). Those investments pay dividends to Soul Patts, which it can then pay on to shareholders.
Bapcor Ltd (ASX: BAP)
Bapcor currently has a grossed-up dividend yield of 3.1%. It was one of the few S&P/ASX 200 Index (ASX: XJO) shares that increased its dividend in FY20. Bapcor has increased its dividend consecutively for the last several years.
The company's trading conditions have been elevated in recent months after everything that has happened with COVID-19 and the related impacts.
The ASX dividend share is expecting to report a "strong" FY21 first half result. For the first five months of FY21 to November 2020, revenue was up 26% with the net profit after tax (NPAT) achieving operating leverage from lower expenses in areas such as travel and other areas of discretionary expenditure, as well as lower interest rates and the contribution from Truckline which was not included in the prior corresponding period.
For the first half of FY21, Bapcor anticipates that it will achieve revenue growth of at least 25% over FY20, and a net profit after tax increase of at least 50%.
Over the next few months, Bapcor is expecting its automated picking system to become operational at its Victorian distribution centre that will deliver significant operational benefits.
Charter Hall Long WALE REIT (ASX: CLW)
This ASX dividend share is one of the few real estate investment trusts (REITs) that increased its distribution in FY20. Another increase is expected in FY21.
What is Charter Hall Long WALE REIT? It's a commercial property trust with long rental leases which is operated by Charter Hall Group (ASX: CHC). It's liked by brokers such as Morgan Stanley which like the high quality tenant base and the access to the Charter Hall platform.
Some of the tenants that are leasing the properties include Telstra Corporation Ltd (ASX: TLS), Australian government entities, BP, Woolworths Group Ltd (ASX: WOW), Inghams Group Ltd (ASX: ING), Coles Group Ltd (ASX: COL), Metcash Limited (ASX: MTS) and Arnott's Group.
The REIT is steadily adding to its portfolio. Recent acquisitions include the flagship David Jones store in Sydney and a portfolio of BP service stations.
There is rental growth built into the contracts and it has a weighted average lease expiry (WALE) of 14.2 years, which is among the longest in the sector.
FY21 it's expecting to generate at least 29.1 cents per unit, which equates to a distribution yield of 6.1% for the ASX dividend share.
