I'm a big fan of ASX dividend shares that can provide a pleasing level of resilient dividend income.
Dividends are not guaranteed, but some businesses have built up a record of passive income and operate in industries that could enable those pleasing payments to continue.
I'm not going to promote stocks like Commonwealth Bank of Australia (ASX: CBA) or BHP Group Ltd (ASX: BHP) because I don't believe they are as defensive as some investors may think. Commodity prices can be volatile, while banks heavily depend on the economy's strength and borrowers' financial health to keep making good profits. The COVID period saw a CBA dividend cut.
Instead, I'll tell you about two ASX shares with a commitment to shareholder payouts.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is one of the oldest businesses on the ASX. It was listed in 1903 and has paid a dividend every year since then.
I think everyone in their 60s or older should be concerned about dividend stability to ensure passive income keeps flowing even during economic downturns. Soul Patts has grown its annual ordinary dividend every year since 2000, the best record on the ASX.
It's an investment house that owns stakes in various companies and sectors, including telecommunications, building products, resources, property, swimming schools, agriculture, and more.
I like the diversification that Soul Patts has within its portfolio; it seems like one of the less risky S&P/ASX 200 Index (ASX: XJO) shares to me because it actually owns a large number of different ASX shares.
It currently has a grossed-up dividend yield of 3.9%, which I think is a solid starting point for dividend income.
Charter Hall Long WALE REIT (ASX: CLW)
This is a diversified real estate investment trust (REIT) that typically pays out 100% of its net rental profit each year to investors, creating a strong dividend yield.
The business has blue-chip tenants (such as government and listed businesses) who are signed on long-term rental leases. This gives the business a lot of income visibility and security. In the FY24 first half-year result, the business had a weighted average lease expiry (WALE) of 10.8 years.
Some of its main types of property investments include offices (leased to a government entity), pubs and bottle shops, telecommunication exchanges, service stations, grocery and distribution, food manufacturing, and waste and recycling management.
While interest rates are a headwind for rental profits and some property valuations, Charter Hall Long WALE REIT is benefiting from steady rental increases. Some of the rent is linked to inflation, while other rental contracts have fixed rent increases.
The ASX dividend share is expecting to generate operating earnings per security (EPS) of 26 cents and pay all of that out as a distribution, which translates into a distribution yield of 7.5%.
