For investors looking to build long-term wealth through dividend income, one ASX dividend share continues to stand out.
Washington H. Soul Pattinson (ASX: SOL), affectionately known as "Soul Patts", has quietly built a reputation as one of Australia's most resilient dividend payers. It recently notched up its 27th consecutive year of dividend increases, earning it informal 'Dividend Aristocrat' status on the ASX — a rare feat in the local market.
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A $14 billion merger with familiar faces
Soul Patts recently announced it would merge with another iconic Australian company — Brickworks Ltd (ASX: BKW) — in a $14 billion transaction. The two companies have shared a unique relationship for decades — Brickworks owns 26% of Soul Patts, while Soul Patts owns 43% of Brickworks.
At its core, the proposed merger will collapse this long-standing cross-holding structure. A new entity, temporarily dubbed TopCo (to be renamed Soul Patts), will be formed to house the combined group.
The result? A single, simplified listed company. For investors, this marks the beginning of a new chapter — one that preserves the heritage and long-term focus of both businesses, while unlocking greater transparency and efficiency going forward.
Why this stock helps investors sleep at night
There are no guarantees in investing, but Soul Patts offers a rare mix of qualities that make it easier to hang on through volatile markets:
- Unbroken dividend growth streak: The company has raised its dividend every year since 1998 — even during the GFC and COVID downturns.
- Diversification built-in: Soul Patts has exposure to telecommunications, resources, financial services, agriculture, industrials, and now even more property and building products through Brickworks.
- Management with skin in the game: Family ownership, long tenure, and prudent capital allocation are hallmarks of the company's leadership.
- No short-term pressure: Unlike many listed businesses, Soul Patts isn't beholden to quarterly results or market fads. It invests with a true long-term mindset.
Income today, growth for tomorrow
Many income investors chase the highest dividend yields on the market. However, Soul Patts shows there's another way — a steadily rising dividend from a business that reinvests for growth.
It's not just a bond proxy. It's an investor in businesses that grow and compound over time, with distributions that reflect rising earnings and asset value.
That's why some market watchers often highlight Soul Patts as one of the rare ASX shares you could genuinely buy and hold.
