There is one ASX dividend share that can claim to have the longest dividend growth record on the Australian Stock Exchange. It's called Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), or Soul Patts for short.
What is the record?
Soul Patts has increased its dividend every year since 2000. That means the consecutive growth streak has been going on for 20 years.
The dividend payments have kept increasing through two global share market crashes. There was the GFC over a decade ago, and it also increased its dividend last year despite the impacts of COVID-19.
The ASX dividend share also has another impressive dividend statistic. It has paid a dividend every year since 1903, which is the year that it listed.
What is Soul Patts?
As I just mentioned, Soul Patts was listed in 1903. It was previously two separate pharmacy companies, Pattinson and Co. and Washington H. Soul and Co.
It's now an investment conglomerate that has assets across a diverse range of industries including resources, building materials, telecommunications, retail, agriculture, property equity, investments and corporate advisory.
The ASX dividend share has been managed by the same family. Soul Patts says that's the key to its strength. It says:
Its leadership has been grounded in successive family members who value the history of the company, yet are able to adapt to changing times and economic conditions. All have had the ability to spot talented people to fill senior and middle management positions.
In turn, management has always been supported by able, loyal and long-serving staff. More than 40 employees have worked for the company for over 50 years. Five generations of the Pattinson family have served the company, as have three generations of the Dixson, Spence, Rowe and Letters families.
What's in the portfolio now?
Soul Patts has a broad range of investment holdings. In terms of listed holdings, it has: TPG Telecom Ltd (ASX: TPG), Tuas Limited (ASX: TUA), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Bki Investment Co Ltd (ASX: BKI), Milton Corporation Limited (ASX: MLT), Pengana Capital Group Ltd (ASX: PCG), Pengana International Equities Ltd (ASX: PIA), 360 Capital REIT (ASX: TOT), Australian Pharmaceutical Industries Ltd (ASX: API), Palla Pharma Limited (ASX: PAL) and Apex Healthcare.
The ASX dividend share also has stakes and investments in a number of private businesses including Round Oak Minerals, Pitt Capital Partners, Ironbarn Asset Management, Contact Asset Management, Ampcontrol, Aquatic Achievers, Seven Miles, Verdant Minerals and Dimeo. It's also invested in luxury retirement living.
One of the most recent investments was a large investment in agriculture, which Soul Patts said were defensive assets benefitting from opening up to foreign trade. Some of the produce that it's invested in includes citrus, macadamias, avocados, stone fruit and table grapes.
How is the dividend funded?
Soul Patts says that it's focused on two key things. The first is growth in the capital value of the portfolio (measured by growth in the net asset values). The second is steady and growing dividends, paid from the cash generation of the portfolio.
Its biggest investments are responsible for the biggest proportion of the cashflow. TPG, New Hope and Brickworks are the biggest three sources of cashflow for the ASX dividend share right now.
In FY20, Soul Patts paid out 56.9% of its regular operating cash flows, allowing the retained amount to be invested in more opportunities and this could help grow the dividend further.
