The S&P/ASX 200 Index (ASX: XJO) is full of ASX dividend shares. However, I think only a certain number of them will be able to pay good passive income for decades to come.
I'm not going to talk about the big ASX bank shares like Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group Ltd (ASX: ANZ). They may well be around for decades, but there are other ASX 200 dividend shares that are worth considering.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Pattinson may be the leading idea when it comes to dividend longevity. The investment business has been listed on the ASX since 1903. It has also paid a dividend every year since it listed. On top of that, the company has grown its dividend every year since 2000, the longest record on the ASX, though of course nothing is guaranteed going forwards.
I think it will be able to keep paying long-term dividends because of its ability to shift its portfolio to be future-focused and become more diversified.
It is investing in various sectors for long-term growth such as electrical parts, agriculture, and swimming schools, while also having its traditional portfolio of blue chips and strategic positions in names like Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG), and New Hope Corporation Limited (ASX: NHC).
It's the name in my portfolio that I think is the one I'll likely hold the longest. At the current Soul Pattinson share price, it has a grossed-up ordinary dividend yield of 3.6%.
APA Group (ASX: APA)
APA is one of the largest energy infrastructure businesses in Australia. It owns national gas pipelines, renewable energy generation assets, gas storage, and gas power generation.
The ASX 200 dividend share has been listed since 2000. Its energy asset portfolio continues to grow as it builds more pipelines. It also recently acquired the Basslink – a cable that links Tasmania with the mainland and enables the island state to export renewable energy.
Gas could be an important part of the energy mix for decades, particularly as a replacement for coal. Plus, the business is working on a way to transport hydrogen through its pipelines. APA is also looking at renewable energy and other electricity transmission assets.
It has grown its distribution every year for a decade and a half. It's expecting to pay an annual distribution of 55 cents per security in FY23, translating into a distribution yield of 4.9%.
BHP Group Ltd (ASX: BHP)
BHP is the largest company on the ASX, with a market capitalisation of $235 billion according to the ASX. The company itself was incorporated in 1885, but it can trace its roots back to the 1850s.
The ASX 200 dividend share has been paying dividends for many years, and I think this can continue. I believe that the world will continue to need resources, perhaps forever. BHP can produce what the world needs. It's focused on growing in areas like copper, nickel, and potash but in the future, it could be something else. BHP can adjust its resource portfolio over time as it sees fit.
I don't think BHP is the type of business that can pay ever-growing dividends. But its dividends can rise with the cash flow when times are good. I think it makes sense to invest in BHP shares when the company seems to be going through a cyclical low point.
