There is a group of ASX dividend shares that have a history of growing the dividend each year.
Plenty of businesses had to, or decided to, cut their dividend in FY20 because of the impacts of COVID-19.
But these two have kept increasing the dividend:
APA Group (ASX: APA)
APA is one of the largest ASX dividend shares that have a long-term dividend growth streak that goes back to before the GFC.
It's a large energy infrastructure ASX share that owns a national gas pipeline delivering around half of the nation's natural gas. It also has investments in a number of gas-related and renewable energy assets.
Its distribution growth is funded by long-term operating cashflow growth. FY21 half-year operating cashflow grew 1.4% to $519 million and the interim distribution rose 4.3% to 24 cents per security.
APA recently announced an investment that could unlock further cashflow growth. It is going to commence the expansion of the transportation capacity on its east coast grid, linking Queensland with southern markets, by approximately 25% through expansion two stages. It also signed a "significant" new gas transportation agreement with Origin Energy Ltd (ASX: ORG).
This expansion by the ASX dividend share is going to come at a cost of around $270 million. Engineering and design works continue on a potential third stage expansion on the east coast grid to add a further 25% transportation capacity.
The latest distribution increase means the APA distribution yield is currently 5.5%.
JB Hi-Fi Limited (ASX: JBH)
JB Hi-Fi is one of the largest retailers in Australia and it sells a number of essential items for daily life including laptops, appliances and phones.
The ASX dividend share is currently rated as a buy by Credit Suisse. The broker has a price target on the retail business of $57.39, which suggests a potential upside of almost 20% over the next 12 months.
JB Hi-Fi has been increasing its dividend every year for almost a decade.
Strong retail sales growth of 23.7% saw net profit after tax and earnings per share (EPS) both increase by 86.2% to $317.7 million and 276.5 cents respectively.
It was this profit growth that funded a 81.8% increase in the interim dividend to $1.80 per share.
The business is benefiting from operating leverage as it gets bigger, with a focus on cost discipline and efficiency.
Despite the huge growth in online volume, JB Hi-Fi's supply chain and logistics were able to keep up. Online sales soared 161.7% to $678.8 million.
Looking at Credit Suisse's estimates for FY21, it's expecting JB Hi-Fi to pay an annual dividend of $2.69 per share. That translates to a grossed-up dividend yield of 8%. JB Hi-Fi is valued at 15x FY22's estimated earnings according to the broker.
