Some ASX dividend shares are well known for their passive income credentials.
A name like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) has the longest dividend growth record on the ASX.
Stocks like Fortescue Ltd (ASX: FMG) have been known for paying large dividend yields.
A business like Australian Foundation Investment Co Ltd (ASX: AFI) is known for having a diversified portfolio with a stable dividend.
I'm going to discuss two ASX dividend shares that may not be well known but have really impressed me over the past few years.
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Charter Hall Group (ASX: CHC)
Charter Hall describes itself as one of Australia's leading fully integrated property investment and funds management groups. It says it manages a diverse portfolio of high-quality properties across its core sectors of office, industrial and logistics, retail and social infrastructure.
The business now manages $80.9 billion of funds under management (FUM), including $65.5 billion of property FUM, as of June 2024.
While the ASX dividend share has been impacted by the higher interest rate environment, hurting property valuations, Charter Hall thinks it's well-positioned to take advantage of a lower interest rate environment "as it emerges".
Unlike most other real estate businesses, Charter Hall has continued increasing its payout for shareholders during this higher interest rate period – that's impressive, in my opinion. The business has increased its passive income payment every year since 2009.
It's expecting to grow its FY25 distribution per security by 6% compared to the FY24 payout of 45.1 cents per security. The FY24 payout translates into a distribution yield of 2.8%.
Universal Store Holdings Ltd (ASX: UNI)
Universal Store owns a portfolio of premium youth fashion brands, with retail and wholesale businesses, aimed at 16 to 35-year-olds. It currently has 102 physical stores across Australia.
The core businesses are Universal Store and CTC (trading as THRILLS and Worship brands). The company is also rolling out the Perfect Stranger brand as a standalone retail business.
Plenty of retail businesses have cut their dividends over the last year or two. Some companies have been unable to maintain their payouts during this period of high cost of living, and some consumers have suffered.
Impressively, the ASX dividend share has grown its annual dividend each year since it started paying one in 2021.
In FY24, the business grew its underlying earnings before interest and tax (EBIT) by 16.6% to $47.1 million, and the statutory net profit increased 45.3% to $34.3 million. This allowed the business to grow its annual dividend per share by 61.4% to 35.5 cents.
The FY24 payout translates into a grossed-up dividend yield of 7.2%.
