Beating the All Ordinaries Index (ASX: XAO) is a hard ask for most investors. Index investing is a highly efficient process, and if an investor wants to beat the index, they need to have the right temperament, be patient, and of course, find the right individual shares.
So let's talk about one ASX dividend share that I think can help any investor beat the All Ords.
It's Washington H. Soul Pattinson and Co Ltd (ASX: SOL). Soul Patts is one of the oldest companies on the ASX. Its roots go back to pre-Federation days. But today, Soul Patts is a rather unique ASX share.
It is a conglomerate running a massive and diversified portfolio of investments, which includes large chunks of other top-quality ASX shares.
These include Brickworks Ltd (ASX: BKW), TPG Telecom Ltd (ASX: TPG) and New Hope Corporation Limited (ASX: NHC). But Soul Patts doesn't just own other ASX shares. It also has large stakes in unlisted assets. These include farms, swim centres, corporate credit and water rights.
An unstoppable All Ords dividend share?
Apart from this impressive diversification, there are two more reasons why I think Soul Patts has what it takes to be an unstoppable investment and crush the All Ordinaries Index going forward.
The first is its unrivalled dividend track record. Soul Patts is the only ASX dividend share that can boast a 21-year streak of raising its dividend payments.
Since 2003, this company has delivered an 8.5% per annum compounded annual growth rate for its shareholder payouts.
In 2003, the company gave its investors a total of 17 cents per share in dividend income. In 2022, that had grown to 72 cents per share. I see no reason this streak will end anytime soon.
The second is this company's track record of destroying the All Ordinaries Index's returns over decades.
In its recently-held 2022 annual general meeting, Soul Patts confirmed that its shares have delivered a total shareholder return (including capital gains and dividends) of 12.5% per annum over the past 20 years (to 20 November 2022).
That compares rather well against the All Ordinaries Accumulation Index, which averaged 9.1% per annum over the same period. Soul Patts told investors that its shares have given investors a cumulative return of 945% since 2002, more than double the All Ords' 461%.
Here's a look at the Soul Patts share price against the All Ords since the turn of the century:
So it's Soul Patts' diversified portfolio of investments, unbeatable dividend track record, and market-crushing performance over two decades that leads me to believe this ASX All Ordinaries share is an unstoppable market beater.
