The ASX dividend growth stock Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) should be among the first names that lazy investors look at if they want ultra-long-term dividend income.
For those unfamiliar with this business, it started out as a pharmacy business over a century ago, but it has since evolved into a diversified investment conglomerate.
It has already proven to be an extremely resilient business to own for dividends. It has paid a dividend to shareholders every year since it listed in 1903, including through world wars, economic depressions, and global pandemics.
The business has already delivered excellent dividend growth for investors, and I expect a lot more. Let's take a look.
Excellent ASX dividend growth stock track record
The business has increased its annual ordinary dividend every year since 1998, which is the longest-running record of dividend growth on the ASX. That's 27 years of consecutive dividend growth. No other business in Australia has a dividend growth streak that started in the last century.
Excluding $1.09 of special dividends, the annual ordinary dividend has increased at a compound annual growth rate (CAGR) of 10.5% since 1998 to now, which is a pleasing rate of expansion, in my view.
Even more impressively, Soul Patts' rate of dividend growth has increased in the last four years, following the acquisition of the listed investment company (LIC) Milton. Between FY21 and FY25, the annual dividend has increased at a rate of 13.5% per annum.
The dividend has been funded by cash flow growth from its portfolio. That net cash flow from investments per share has increased at 16.5% per annum since the Milton merger.
Why it's such an attractive share for lazy investors
The business has built a high-quality diversified portfolio across asset classes and industries.
That portfolio includes listed companies with long-term compounding potential, 'real' assets (such as real estate, agriculture, and data centres), emerging listed and unlisted companies, credit, and private companies.
Soul Patts is purposefully deploying capital into unlisted assets where there are "strong returns for the risk taken".
The company thinks it has several advantages compared to other institutional investors and the wider market. Its capital is permanent, its asset allocation across the portfolio is flexible, its investment horizons are not defined, and its internalised portfolio management delivers cost efficiencies.
Ultimately, the ASX dividend growth stock aims to deliver both capital and income growth for shareholders.
With a diversified portfolio spanning areas such as telecommunications, swimming schools, resources, financial services, electrification, real estate, and more, there's a lot to like about this portfolio for lazy investors.
To me, it's not a surprise Soul Patts shares delivered an average return per year of 13.7% over the 25 years to 23 September 2025. The way it's set up makes long-term success likely, and the ability to fine-tune the portfolio with local or international names that are listed or unlisted is very pleasing to me.
I'm bullish about the business myself, which is why it'll be one of the biggest positions in my portfolio for decades to come.
