There’s a group of S&P/ASX 200 Index (ASX: XJO) shares that keep increasing their dividends.
One of the two businesses in this article announced another increase today:
Magellan Financial Group Ltd (ASX: MFG)
Magellan is one of the biggest funds management businesses in Australia, with Hamish Douglass at the helm of the investing team.
Whilst the performance fees and performance special dividends can be variable, the ordinary dividend of Magellan continues to climb.
In the result for the first half of FY21, Magellan decided to increase the interim dividend by 5% to 97.1 cents per share.
That dividend was declared with the release of its report. The ASX 200 dividend share showed that average funds under management (FUM) went up 9% to $100.9 billion, with management and service fees revenue up 8% to $311.4 million. Profit before tax and performance fees of the funds management business went up 8% to $256.2 million.
Net profit after tax grew 3% to $202.3 million, whilst adjusted net profit after tax fell 2% to $213.1 million.
Magellan said that it expects the funds management business expenses in FY21 to be at the lower end of the $110 million to $115 million range.
The ASX 200 dividend share gave an insight into how its investments in Barrenjoey and Guzman y Gomez are going.
Barrenjoey has welcomed David Gonski as the independent chair. Magellan said that Barrenjoey has established many of the key foundations and is on track to complete those that remain. It now has around 150 employees, assembled from around 30 different institutions. The advisory business has been operating since late 2020. The markets businesses are due to go live progressively from the second quarter of 2021. The client onboarding process has commenced and the integration with Barclays is “well progressed”.
Guzman y Gomez has $410 million of annualised global sales, with $387 million of annualised Australian sales. Australian like for like sales growth was 27% in FY21 to date. More than 70% of restaurants have a return on investment (ROI) of more than 25%.
At the current Magellan share price it has a partially dividend yield of 4.5%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is the ASX 200 dividend share that has grown its dividend for the most years consecutively in a row. The current streak goes back to 2000. It has also paid a dividend every year since it listed in 1903.
It started out as a pharmacy business but has evolved into a diversified investment conglomerate with investments across many different sectors.
Soul Patts owns large stakes in ASX companies like TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Australian Pharmaceutical Industries Ltd (ASX: API), Bki Investment Co Ltd (ASX: BKI), Milton Corporation Limited (ASX: MLT) and Tuas Ltd (ASX: TUA).
Not only that, but the ASX 200 dividend share also owns a number of stakes in unlisted businesses. It’s invested in agriculture, resources, financial services and swimming schools. It also owns stakes in businesses like Ampcontrol, Dimeo and Verdant Minerals.
One of the most recent investments was the allocation to agriculture. It bought defensive assets benefiting from the opening up of trade, including citrus, macadamias, avocados, stone fruit and table grapes.
Soul Patts also owns a small cap portfolio which aims to identify fast-growing companies that are outside the companies monitored by the large cap portfolio managers.
At the current Soul Patts share price it has a grossed-up dividend yield of 3%.