There are some potentially wonderful ASX dividend shares that could offer compelling payouts for income-seekers in the coming years.
Some businesses on the ASX share market are known for paying dividends such as Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).
However, there are some smaller companies that could provide more compelling income and growth over the long-term:
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Brickworks Limited (ASX: BKW)
Brickworks is a leading construction products business that has a number of leading divisions including Bristle Roofing, Austral Bricks, Austral Masonry, Austral Precast and Pronto Panel. In the US it has acquired a few businesses, making it a leader in some areas of the country – one of those acquisitions was Glen Gery.
This ASX dividend share hasn't cut its ordinary dividend for over 40 years.
Brickworks has two asset divisions that help fund and grow the Brickworks dividend – its large shareholding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares as well as its 50% share of the joint venture industrial property trust with Goodman Group (ASX: GMG).
Soul Pattinson is an investment conglomerate that is invested in various assets and sectors including telecommunications, resources, agriculture, financial services, property, swimming schools and blue chip ASX shares. It has been providing growing earnings and defensive dividends to Brickworks for decades.
There is unprecedented demand for the industrial properties in the trust, which is expected to lead to record earnings in the first half of FY22. The trust continues its development activity. The new, huge Amazon facility was scheduled to be finished at the end of December 2021. The trust will soon have another 75 hectares of land which will extend its development pipeline in order to meet the unprecedented demand for industrial property.
The ASX dividend share currently has a trailing grossed-up dividend yield of 3.6%.
Nick Scali Limited (ASX: NCK)
Nick Scali is a leading furniture business which recently grew even bigger with the acquisition of the Plush-Think Sofas business.
The combined business will have around 110 showrooms and in FY21 the two companies generated a combined $533 million of revenue and $153 million of earnings before interest, tax, depreciation and amortisation (EBITDA).
The ASX dividend share's management believe that Plush has been purchased on attractive financial metrics, there are material synergies to be extracted and that there is a growth opportunity for both a national store rollout and online growth.
Nick Scali has grown its dividend every year since 2013, including through 2020.
The brokers at Macquarie Group Ltd (ASX: MQG) think that Nick Scali is a buy and is going to pay a grossed-up dividend yield of 6% in FY22 and 6.9% in FY23.
Nick Scali is also looking to own more of its own retail stores and expected to complete the acquisition of a new showroom in Townsville by the end of December. This site will also include a new distribution facility serving North Queensland, providing the infrastructure for further growth in that region.
