2 ASX 200 shares that keep growing the dividend every year

These 2 S&P/ASX 200 Index (ASX:XJO) shares have been growing their dividend every year for shareholders for over a decade.

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The two S&P/ASX 200 Index (ASX: XJO) shares in this article have been growing their dividends every year to shareholders for over a decade.

It’s quite rare to find an ASX 200 share that has a dividend growth record going back over a decade. The GFC ended a number of dividend growth records, including the one belonging to Ramsay Health Care Limited (ASX: RHC).

The business with the longest dividend growth record in the ASX 200 is Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

But this article is about these two ASX 200 dividend growth shares:

Domino’s Pizza Enterprises Ltd. (ASX: DMP)

Domino’s actually has a dividend growth streak going back to the GFC. Since then the pizza business has become a global fast food powerhouse.

In the latest result, being the FY21 half-year report, it reported it made $1.84 billion of network sales (up 16.5%) and online sales grew by 25.4% to $1.42 billion.

At the end of the half, it had grown its store count to almost 2,800. Over the next decade or so it’s looking to grow that store count to around 5,550. Europe will account for around half of that total, with the Japanese store target goal being 1,500 and ANZ making up the rest.

The ASX 200 share is still forecasting solid medium-term growth. Over the next three to five years it thinks that the annual same store sales could grow by 3% to 6% per annum, with an outlook for annual organic new store additions of between 7% to 9% per annum.

Japan is a region that the company is “very confident of ongoing expansion”. In the FY21 half-year result it saw online sales growth of 56.6%, network sales growth of 42.6% and same store sales (SSS) growth of 36.4%.

Overall, Domino’s half-year net profit grew 32.8% and free cashflow went up 50.3%, funding a 32.5% increase to the dividend.

APA Group (ASX: APA)

APA’s distribution growth record actually extends back before the GFC. It’s one of the longest records on the ASX.

This ASX 200 share is a major Australian energy infrastructure business that owns and/or manages and operates a portfolio of assets worth around $22 billion. It has 15,000 kilometres of natural gas pipelines that connect sources of supply and markets across mainland Australia. It connects 1.4 million Australian homes and businesses to natural gas, supplying around half of the nation’s usage.

The business also has investments in a number of other energy infrastructure assets such as wind farms, solar farms, gas storage, gas processing and gas power stations.

APA continues to look for new investments that can grow its operating cashflow, which is what funds the distribution to shareholders. It’s looking to expand into high growth infrastructure markets. It said it will invest in contracted and regulated energy infrastructure (gas, electricity and renewables) in Australia and North America.

The ASX 200 dividend share has also established its ‘pathfinder program’ to explore a range of new energy technologies.

It’s expecting to organically spend more than $1 billion over FY21 to FY23, including building the new $460 million Northern Goldfields Interconnect and $38 million Gruyere Hybrid Energy Microgrid.

APA continues to hunt for opportunities in the US, but factors like COVID-19 and the US federal election resulted in a number of opportunities being put on hold in 2020. More activity is expected in FY21.

In the FY21 half-year result APA grew the distribution by 4.3% to 24 cents per security, with guidance for the full year distribution to by 51 cents – a 2% total increase. This equates to a forward distribution yield of 5.2%.

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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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