Compelling ASX dividend shares might be worth looking at during November 2021.
Interest rates are still expected to stay low for years, which could make the investment income from these businesses attractive to think about.
Not every business that pays a dividend has a history of consistency, but these two do:
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is the ASX dividend share with the longest dividend growth record on the ASX. The investment conglomerate has increased its dividend every year since 2000.
It has a diversified portfolio, which helps it lower exposure risk to any particular industry or investment. Some of sectors that it's invested in includes telecommunications, building products, resources, property, agriculture, financial services and listed investment companies (LICs).
In terms of actual businesses it is invested in, they include: TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Ampcontrol, Pengana Capital Group Ltd (ASX: PCG), Pengana International Equities Ltd (ASX: PIA), Bki Investment Co Ltd (ASX: BKI) and Round Oak.
The business receives investment income each year from its portfolio. This allows Soul Patts to pay out that steadily-growing dividend whilst re-investing for more opportunities.
After the recent merger with Milton, there are a number of areas that the ASX dividend share is looking for more opportunities: global shares, health and ageing, the energy transition, agriculture, financial services and education. The Milton merger will give it more than $2 billion of additional liquidity as well as additional debt capacity at a low cost.
At the current Soul Patts share price, it has a grossed-up dividend yield of 2.7%
Charter Hall Long WALE REIT (ASX: CLW)
This is one of the larger real estate investment trusts (REITs) on the ASX with a market capitalisation of around $3 billion according to the ASX.
It owns a portfolio of different properties across different sectors. The one thing that all the properties have in common is that the REIT aims to have a long rental tenancy with them.
Some of the sectors it's invested in includes social infrastructure, office, industrial, diversified long weighted average lease expiry (WALE), convenience retail, hospitality and agri-logistics.
After its latest transaction, this business is expected to have a WALE of 12.6 years with a weighted average rent review (WARR) of 2.9%.
It has many high-quality tenants including Endeavour Group Ltd (ASX: EDV), various federal and state government entities, Telstra Corporation Ltd (ASX: TLS), BP, Inghams Group Ltd (ASX: ING), Coles Group Ltd (ASX: COL), David Jones and Metcash Limited (ASX: MTS).
The ASX dividend share's property portfolio has an occupancy rate of 98.4%. Combined with the long WALE, this business has a high level of income visibility.
It aims to pay investors a distribution payout ratio of 100%, which results in a relatively high yield.
At the moment, Charter Hall Long WALE REIT is rated as a buy by the broker Morgan Stanley, with a price target of $5.51.
Based on Morgan Stanley's projections, the REIT will pay a yield of 6.3% for FY22.
