The Australian share market is not short of ASX dividend shares.
While some companies, such as banks and miners, have dividends that rise and fall during cycles, others are on a consistent upward trajectory. These companies can be classed as ASX dividend growth shares.
By focusing your investments on companies with a proven track record of growing their payouts, investors can leverage the power of compounding to build significant wealth over time.
Let's take a look at a couple of ASX dividend growth shares for investors to consider. They are as follows:
Accent Group Ltd (ASX: AX1)
Accent Group is a great example of an ASX dividend growth share.
A decade ago in FY 2015, the leisure footwear retailer was rewarding its shareholders with a 5 cents per share dividend.
According to analysts at Bell Potter, they expect the company to pay 13.9 cents per share in FY 2025 and then 15.8 cents per share in FY 2026. The latter is over 200% greater than its payout in FY 2015.
In light of this, it will be no surprise to learn that Accent Group's shares have beaten the market over the past 10 years. During this time, its shares have delivered an average return of 18.4% per annum. This would have turned a $10,000 investment into approximately $54,000.
And with the company's store expansion continuing, don't be surprised if this outperformance continues over the next decade.
Bell Potter currently has a buy rating and $2.50 price target on its shares.
APA Group (ASX: APA)
Another ASX share to look at is APA Group. It is an energy infrastructure company that owns a high quality $26 billion portfolio of gas, electricity, solar and wind assets around Australia.
APA Group is close to completing 20 years of dividend increases in a row, firmly cementing its position as an ASX dividend growth share.
Back in FY 2005, the company paid out 22.5 cents per share. According to Macquarie, loyal shareholders can expect dividends of 57 cents per share in FY 2025 and then 58.5 cents per share in FY 2026. The latter is a 160% increase on FY 2005's payout.
This has helped its shares generate an average return of 10.8% per annum over the past 15 years. This would have turned a $10,000 investment into almost $47,000.
Macquarie believes that there are more gains ahead for investors. It currently has an outperform rating and $8.47 price target on its shares.
