The ASX share market has a range of high-yielding ASX dividend shares across banking, retail and resources. These are good for high levels of passive income. But there aren't many with long consecutive annual dividend growth records.
There are a group of businesses in the US that have increased their dividends every year for more than 25 years. They are called dividend aristocrats. Examples include McDonald's, Coca Cola, Procter & Gamble, and S&P Global.
On the ASX, there aren't any names that have managed to do that, though the investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is getting very close, having increased its dividend every year since 2000.
This article is going to be about two ASX dividend shares that could pay (growing) dividends for many years ahead. I'm looking for businesses that could achieve resilient cash flow and that could enable the dividend payments to keep flowing.
Shaver Shop Group Ltd (ASX: SSG)
Shaver Shop has increased its dividend every year since 2017, meaning it kept increasing during COVID-19.
It currently has a grossed-up dividend yield of 11.7% after a payment of 10 cents per share in FY22. The numbers on Commsec suggest that the business could grow the dividend and pay 10.5 cents per share in FY23, translating into a grossed-up dividend yield of 12.3%.
By FY25, the business could pay an annual dividend per share of 12 cents, which be a grossed-up dividend yield of 14%.
This business doesn't just sell advanced shavers, clippers and trimmers, and wet shave items, it also sells products across oral care, hair care, massage, air purity treatment, and beauty categories.
Shaver Shop is expanding its product ranges, growing its store network, benefiting from scale and selling the latest products.
I think people are going to keep shaving, even if fashion trends do change over time. In my opinion, this could be one of the underrated ASX passive income ideas with a market capitalisation under $1 billion.
Brickworks Limited (ASX: BKW)
Brickworks is the largest brickmaker in Australia and the northeast of the US. It recently signed a deal to start sending large quantities of bricks to the UK as well. The business also sells other building products in Australia, such as roofing, masonry, and cement.
But, the parts that make it an interesting dividend idea are its other assets.
It owns a large chunk of Soul Pattinson shares, which gives Brickworks a steady and growing stream of dividend cash flow to fund its own dividend. Plus, Soul Pattinson is achieving capital growth for Brickworks as well.
Brickworks also has a growing industrial property trust which it owns alongside Goodman Group (ASX: GMG). The idea is to build high-quality warehouses on excess land that Brickworks no longer needs. This unlocks the potential value of the land, plus creates strong rental cash flow. I think businesses will always need good logistics locations (warehouses), so this property trust could do well for many years ahead, helping the passive income.
The Soul Pattinson dividend and property trust rental income essentially funds the Brickworks dividend, with building product earnings being a bonus.
Brickworks has grown its dividend each year since 2014 and hasn't cut its dividend for more than 40 years.
It currently offers a grossed-up dividend yield of 3.7%.
