Is this the most reliable ASX dividend stock?

I think this Australian business is unmatched on the ASX.

| More on:
a woman in a business suit uses an old fashioned tape measure holding it up against the tallest bar in a bar graph on a wall.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Reliable ASX dividend stocks are exactly what I want to have in my portfolio because of how much confidence they give me that expected dividend payments will continue to be paid to me.

If I want that dividend cash flow to spend in my life, I need to find businesses with resilient profitability and a history of regularly increasing payouts.

During the COVID-hit year of 2020, we saw dividend cuts from many of Australia's largest ASX blue-chip shares, including Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and ANZ Group Holdings Ltd (ASX: ANZ).

In 2025, we've seen dividend cuts from Australia's biggest miners – BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Fortescue Ltd (ASX: FMG). Owners of Woodside Energy Group Ltd (ASX: WDS) shares have also seen dividend cuts in recent results.  

There are a fair few Australian businesses that have increased their payout every year since before COVID struck the world. But it's even rarer to find reliable ASX dividend stocks that have increased their dividend payout every year since the GFC.

There's only one name on the ASX that has increased its annual (ordinary) dividend every year this century.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

This business is the ultimate leader on the ASX when it comes to dividend growth.

It has grown its regular dividend every year since 1998. That means its payout has grown through the high inflation period, COVID, the GFC, and the dot com crash.

In fact, this company has paid a dividend every year (though not grown it) since 1903 when it first listed, including through wars and all the financial crashes.

While past dividends are not a guarantee of future dividends, I think this business is set up to remain the most reliable ASX dividend stock because of how it's set up.

It's an investment business that has a portfolio of both listed (almost entirely ASX) shares and private businesses.

Some of its largest ASX share investments include Brickworks Ltd (ASX: BKW), TPG Telecom Ltd (ASX: TPG), Tuas Ltd (ASX: TUA), New Hope Corporation Ltd (ASX: NHC), BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), and Wesfarmers Ltd (ASX: WES).

Its private businesses are spread across industries like agriculture, swimming schools, financial services, and electrification.

I like the diversification offered by this varied portfolio.

The company has built its portfolio to be resilient and generate defensive cash flow, which allows those assets to continue sending money to Soul Patts in the form of dividends. The defensive cash flow adds another layer of protection for the Soul Patts dividend. Plus, those assets are regularly growing, making it likely they can increase their payouts to Soul Patts.  

But it's not as though this reliable ASX dividend stock is paying out all of its profit to shareholders each year. It retains a portion of its cash flow (after paying for its operating expenses), which then gives the business funds to invest in more opportunities. In the FY25 half-year result, its dividend payout ratio represented only 55.8% of its net cash flow from investments.

I think this reliable ASX dividend share is likely to continue growing its annual dividend for the foreseeable future, particularly if its largest investments continue paying sizeable dividends.

Motley Fool contributor Tristan Harrison has positions in Brickworks, Fortescue, Tuas, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Macquarie Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Brickworks, Macquarie Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A woman wearing yellow smiles and drinks coffee while on laptop.
Dividend Investing

Forget CBA and buy these ASX dividend shares

Let's see why analysts think these shares could be buys and better than Australia's largest bank.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Buy these ASX dividend stocks for 5% to 8% dividend yields

Analysts think these stocks would be great picks for income investors.

Read more »

A man walks up three brick pillars to a dollar sign.
Dividend Investing

How to turn ASX dividends into long-term wealth

This simple strategy could be an easy way to build wealth in the share market.

Read more »

Woman using a pen on a digital stock market chart in an office.
Dividend Investing

Here's my top ASX dividend stock for 2026

With a growing dividend, resilient traffic trends, and inflation-linked revenue, this is my top ASX dividend stock for 2026.

Read more »

A businessman in a suit adds a coin to a pink piggy bank sitting on his desk next to a pile of coins and a clock, indicating the power of compound interest over time.
Dividend Investing

These ASX dividend stocks are built to keep paying and paying

Here are two of the ASX's best dividend payers...

Read more »

man using a mobile phone
Dividend Investing

Why Telstra and these ASX dividend shares could be top buys

Analysts think these shares are buys for income investors.

Read more »

A happy couple looking at an iPad.
Dividend Investing

Why AFIC shares are a retiree's dream

This stock looks like an excellent pick for retirement.

Read more »

Woman holding $50 and $20 notes.
Dividend Investing

The top 3 Australian dividend stocks I'd tell anyone to buy

Not all dividend stocks are created equal. These three stand out for balance sheet strength, resilience, and the potential to…

Read more »