Investors wanting dividends are spoiled for choice with numerous Aussie passive income stocks.
But there are not many businesses that have paid dividends to investors for more than two decades.
Dividends are not guaranteed, of course, but when a business has a history of paying dividends, I think it's likely that the company will try to continue paying cash flow to investors if it can.
I'm going to talk about three businesses that have long-term dividend records, and that I consider some of the most reliable payers on the ASX.
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Sonic Healthcare Ltd (ASX: SHL)
Sonic Healthcare is a major pathology business with a presence in a number of countries, including Australia, the US, the UK, Germany, and Switzerland.
I believe the business has defensive earnings – healthcare is typically in demand throughout the year, regardless of economic conditions. On top of that, the business has expanded its geographic presence over the years, unlocking more earnings.
I'm not expecting the business to grow as fast in the future as it has in the past, but I think there is still organic growth potential with growing and ageing populations.
In terms of the dividend, it has grown its payout in most years over the last 30 years, with only a few years in the 2010s where the Aussie passive income stock maintained its dividend.
Sonic Healthcare currently has a dividend yield of approximately 4.7%, as of the time of writing, including franking credits.
APA Group (ASX: APA)
APA is one of the largest energy infrastructure businesses in Australia. It owns a massive gas pipeline network in the country, transporting half of the nation's usage. APA also has solar farms, wind farms, electricity transmission assets, gas storage, gas processing, and gas power plant.
It funds its distribution from the cash flow generated by its portfolio of assets. As the asset base has grown through organic developments (such as new pipelines) and acquisitions, its cash flow has grown.
Impressively, the Aussie passive income stock has grown its distribution every year for the past 20 years, which is the second-best record on the ASX.
It expects to grow its annual distribution to 58 cents per security in FY26. That translates into a forward distribution yield of 6.3%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is an investment conglomerate that's diversified across a variety of sectors.
Some of the sectors in which it has invested include resources, telecommunications, agriculture, water entitlements, swimming schools, healthcare, financial services, building products, industrial properties, and more.
The impressive Aussie passive income stock has built a highly diversified portfolio that generates a steady stream of defensive cash flow each year in the form of dividends, distributions, and interest. Soul Patts then uses a majority of that money to pay a larger dividend than last year, and then it reinvests what's left into additional opportunities.
It has increased its ordinary annual dividend every year since 1998. The FY25 payout translates into a grossed-up dividend yield of 4.1%, including franking credits.
