2 ASX dividend shares that could provide steady income retirement

Brickworks is one of the ASX dividend shares that could provide steady income.

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There are a handful of ASX dividend shares that have been providing consistent income and may be able to continue to do so.

The two businesses in this article have already paid a consistent dividend for decades.

Dividends aren’t guaranteed, but boards do have some discretion about what payment they’re going to send to shareholders.

Here are two to think about:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is a large investment conglomerate. It has actually been listed since 1903, making it one of the oldest businesses on the ASX.

The business has a diversified portfolio of assets, both listed shares and unlisted businesses.

Its biggest positions are ones that it has held for many years such as TPG Telecom Ltd (ASX: TPG) and New Hope Corporation Limited (ASX: NHC). But it also has plenty of other investments like Australian Pharmaceutical Industries Ltd (ASX: API), Bki Investment Co Ltd (ASX: BKI), Clover Corporation Limited (ASX: CLV), Tuas Ltd (ASX: TUA), Pengana International Equities Ltd (ASX: PIA) and Pengana Capital Group Ltd (ASX: PCG).

In recent times the ASX dividend share has launched takeover offers for the aged care operator Regis Healthcare Ltd (ASX: REG) and the listed investment company (LIC) Milton Corporation Limited (ASX: MLT). The Regis offer was rejected, but the Milton offer may be successful.

Soul Patts also has a portfolio of stakes in non-ASX businesses such as Apex Healthcare, Round Oak Minerals, Ampcontrol, Pitt Capital and sectors like agriculture, retirement living and financial services.

It has increased its dividend every year since 2000, which is the longest record on the ASX. It has actually paid a dividend every year since listing over a century ago.

Soul Patts funds its dividend from the operating cashflow from the investment income sent to it, after paying for its expenses.

At the current Soul Patts share price, it has a grossed-up dividend yield of 2.6%.

Brickworks Limited (ASX: BKW)

Brickworks is another business which has a long dividend record. It hasn’t cut its dividend in the last 40 years.

It has a number of brands in the construction sector. Brickworks is the market leader in bricks with a number of brands including Austral Bricks, Bowral Bricks and Daniel Robertson. Other building product businesses in Australia include Austral Masonry, Austral Precast and Bristle Roofing.

The ASX dividend share has some businesses in North America (after acquiring them) called Glen Gery, Sioux City Brick and Lawrenceville Brick.

The business funds its dividends from two assets. It has a joint venture industrial property trust with Goodman Group (ASX: GMG).

Brickworks pointed out that industrial real estate has been particularly resilient throughout the COVID-19 pandemic. There is significant land for further development at the estates. It has 171,300 square metres of lease pre-commitments already secured. The completion of these facilities over the next two years will result in gross rent within the trust increasing by around $38 million. This represents a 40% uplift from the current level.

In addition to the pre-committed developments, a further 336,900 square metre of gross lettable area is available for development, which provides further opportunity for growth in the years ahead.

Brickworks also has a large holding of Soul Patts shares, which provides Brickworks with stable earnings and growing dividends.

Brickworks has a grossed-up dividend yield of 3.4%.

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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Clover Corporation Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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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