There are a number of S&P/ASX 200 Index (ASX: XJO) shares that could be good options to consider for dividend income for the long-term.
Businesses that are growing their operating earnings over the long-term have the ability to grow their cash payouts to shareholders over time as well.
Not every ASX 200 share that pays a dividend is worth owning.
But these two ideas could be ones to think about:
Centuria Industrial REIT (ASX: CIP)
As the name suggests, this is a real estate investment trust (REIT) which focuses on quality industrial properties.
In FY21, the portfolio expanded to 62 industrial assets, with the total portfolio value increasing to $2.9 billion. During the year, it acquired 18 assets worth $966 million and introduced two new industrial sub-sectors, being data centres and cold storage.
It was a strong year for the ASX 200 dividend share with a $587 million increase in valuation, representing a 25% lift in the valuation.
The portfolio has a high level of income visibility. It has a weighted average lease expiry (WALE) of 9.6 years with an occupancy rate of 96.9%.
In FY21, the business generated funds from operations (FFO) of 17.6 cents per unit, or $91.4 million in total. With that rental profit, it paid a distribution of 17 cents per unit.
In FY22, Centuria Industrial REIT is expecting to report growth. FFO per unit guidance is at least 18.1 cents and a distribution per unit of 17.3 cents. That translates to a FY22 yield of 4.3%.
The fund manager of the REIT, Jesse Curtis, has said:
The domestic industrial market has continued to strengthen the strong tailwinds from increased adoption of e-commerce as well as demand from tenants onshoring operations. With record low vacancy rates across all major markets, Australia's industrial real estate sector remains a highly sought-after market attracting investment demand and creating robust competition for quality industrial and logistics assets.
It's currently rated as a buy by the broker Macquarie Group Ltd (ASX: MQG).
Rural Funds Group (ASX: RFF)
Rural Funds is an ASX 200 dividend share that aims to grow its distribution by 4% per annum. It's a landlord that owns a diversified farm portfolio including cattle, almonds, macadamias, vineyards and cropping (sugar and cotton).
The business doesn't carry the operational risks of farming, that's on the tenant. But Rural Funds does own a large amount of water entitlements for farmers to use.
Rural Funds looks to grow its distributions thanks to two organic elements. Its rental income is contracted to grow at the farms, either with a fixed 2.5% annual increase or linked to CPI inflation, with some contracts having market reviews. It is also investing in some farms to make them more productive, such as more water access points.
The ASX 200 share's farms are spread across different states and climate conditions, so it's increasingly diversified in that regard.
Rural Funds saw its pro forma adjusted net asset value (NAV) increase by 13% to $2.20 per unit after property revaluations during the year.
In FY22, Rural Funds has forecast a 4% increase of the distribution to 11.73 cents per unit. That translates to a forward distribution yield of 4.4%.
