1 impressively awesome Australian dividend stock down 20% to hold for decades!

This business looks far too cheap to me.

Key points
  • Washington H. Soul Pattinson operates as an investment conglomerate, with the flexibility to invest in diverse asset classes for long-term growth and stability.
  • The company has expanded its investments into areas like nuclear energy and agriculture, enhancing its portfolio's strength and potential future returns.
  • Known for stability, Soul Patts has a 120-year track record of annual dividends and a continuous growth streak since 1998, with a current yield of 4.1%.

The Australian dividend stock Washington H. Soul Pattinson and Co Ltd (ASX: SOL) looks far too cheap to me after its fall of approximately 20% since 10 September 2025, as the chart below shows.

There are not many businesses as old as Soul Patts on the ASX – it has already been listed for 120 years.

I'd say there are plenty of reasons to believe the business will continue to be an excellent ASX dividend share for decades to come, for both passive income and capital growth.

There are a few reasons why I've made this business my largest holding and why I'm optimistic about the future.

Australian notes and coins symbolising dividends.

Image source: Getty Images

Long-term investing

The business operates as an investment conglomerate, it makes active decisions about what to invest in.

Management has broad flexibility to invest in virtually any asset class, whether it's a large or small business.

Thankfully, the company doesn't need to invest with any particular time horizon in mind, unlike some active fund managers. The Australian dividend stock can be an investor, a partner, or the complete owner of the businesses/assets it invests in.

By taking a long-term approach with its own investments, Soul Patts itself is able to be a pleasing long-term investment for Aussies.

It has invested in a number of compelling areas in recent times, such as nuclear energy, agriculture, swimming schools, a funeral operator, electrification, industrial properties, building products, and more to diversify and potentially strengthen its long-term returns.

I think the business is boosting its appeal as it steadily adds to its portfolio. Its investment flexibility allows it to ensure its portfolio is future-proof by selling assets with weakening outlooks and buying into more appealing ideas.

Great dividend track record

In my view, Soul Patts is the best Australian dividend stock around. It doesn't have the highest dividend yield. But it does have an incredible record of consistency for paying dividends.

It has paid a dividend every year in its listed life (of around 120 years) – that's through the world wars, global pandemics, economic crashes, and various other challenges.

The business has also increased its annual ordinary dividend every year since 1998. That's the longest dividend growth streak on the ASX and suggests to me the business is heavily focused on continuing that record of payout growth for investors, though that's not a guarantee.

I'm expecting the business to grow its dividend in FY26, with the 2025 financial year payout of $1.03 per share translating into a grossed-up dividend yield of 4.1%, including franking credits. That's a great starting point, in my view, and the payout could steadily grow over the coming years.

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. 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 man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Dividend Investing

These cheap ASX dividend shares are down 30%+ and could be bargain buys

These beaten down shares could be worth a closer look at current prices.

Read more »

A woman holds out a handful of $50 Australian dollar notes.
Dividend Investing

296,399 shares of this ASX dividend stock pays an income equal to the Age Pension

This ASX dividend stock could be precisely what income seekers are looking for.

Read more »

Businessman smiles with arms outstretched after receiving good news.
Dividend Investing

Forget term deposits! I'd buy these ASX dividend shares instead

ASX dividend shares offer multiple benefits compared to banking products.

Read more »

Senior couple enjoying each other's company while walking on the beach.
Dividend Investing

3 super ASX dividend stocks that make my shortlist in November for passive income in 2027

Looking for an income boost next year? Here are three shares to consider.

Read more »

Man holding fifty Australian Dollar banknotes in his hands, symbolising dividends.
Dividend Investing

2 compelling ASX shares with dividend yields above 10%

These businesses offer exceptionally high dividend yields.

Read more »

Rising stacks of coins next to a piggy bank.
Dividend Investing

$4,000 buys 2,564 shares in an impressively reliable ASX dividend stock

This stock offers significant dividend income.

Read more »

Woman shopping for cleaning products at a supermarket.
Consumer Staples & Discretionary Shares

Coles shares fell 13%. How's the dividend yield looking?

Coles' pain could be income investors' gain.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Dividend Investing

2 ASX dividend shares I'd use to generate $400 a month in 2027

These two businesses have incredibly attractive income characteristics.

Read more »