These ASX dividend shares keep giving investors a payrise

Bapcor and APA are two ASX dividend shares that have kept giving payrises.

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There are a number of ASX shares that have increased dividends for several (or more) years in a row.

Dividends aren’t guaranteed, but it might be interesting to know some businesses have been growing their dividends for a number of years and might increase the dividend again.

Here are two that might be worth thinking about:

APA Group (ASX: APA)

APA is one of the largest infrastructure businesses on the ASX. It specialises in gas assets. The business owns a large gas pipeline around the country, it transports around half of Australia’s natural gas. It also has investment stakes in assets like gas storage, gas power generation and gas processing.

The ASX dividend share has been diversifying its asset base in recent times with renewable energy. It has exposure to both wind farms and solar farms.

APA has grown its distribution every year for a decade and a half. The gas infrastructure giant pays its distribution from the operating cashflow that it makes each year. That cashflow has been rising thanks to APA’s growing asset base.

It has a number of projects in the works right now.

For example, in December it announced a two phased power expansion agreement with an existing customer, the Gruyere Gold Mine in Western Australia, which will increase total installed capacity by 45% from 45MW to 64MW. This includes creating the ‘Gruyere Hybrid Energy Microgrid’. This is its first hybrid microgrid investment. Total capital expenditure for all expansion works will be approximately $38 million.

APA is also commencing a 25% expansion of its east coast grid. This expansion will be delivered in two stages at a capital cost of $270 million. It will increase winter peak capacity, delivering gas from Queensland and the NT to southern markets.

At the current APA share price, it has a distribution yield of 5.3%.

Bapcor Ltd (ASX: BAP)

Bapcor is a large auto parts business with operations in Australia, New Zealand and Asia.

The ASX dividend share has a number of brands including Burson, Autobarn and various specialist wholesalers, including electrical parts and truck parts.

Bapcor has been increasing its dividend for the last several years. FY21 has seen strong profit growth in these strange COVID-19 times.

Asia is becoming a larger focus for Bapcor. It recently bought 25% of Tye Soon, a Bapcor-like business with operations in Malaysia, South Korea, Australia, Singapore and other Asian countries. It’s also starting a Burson network in Thailand where it wants to open more than 60 locations with a turnover target of $100 million.

In Australia and New Zealand the ASX dividend share wants to grow the number of locations, improve its existing store locations and increase the amount of own brand products it sells.

Bapcor’s FY21 half-year result saw pro forma earnings per share (EPS) growth of 28.9% to 20.7 cents. This helped fund a 12.5% increase of the interim dividend to 9 cents per share.

The current trailing grossed-up dividend yield is 3.2%.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended APA Group and Bapcor. 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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