Here are 2 ASX dividend stocks often mentioned in the same breath by income investors — but for very different reasons.
Coles Group Ltd (ASX: COL) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) sit at opposite ends of the market. One sells groceries to millions of Australians every week. The other quietly compounds wealth through long-term investments.
What the ASX dividend stocks share is a reputation for dependable dividends. The question is how reliable that income really is from here.
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Coles
Coles has positioned itself as a defensive income stock since its demerger, with dividends paid twice a year and typically fully franked. The ASX 200 share aims to return a large portion of earnings to shareholders, and that policy has delivered a steady, if unspectacular, yield.
The strength of Coles lies in its predictability. Australians keep buying groceries regardless of economic conditions, which gives Coles resilient cash flow and earnings visibility.
That stability underpins its dividend reliability and makes it attractive to conservative investors. For example, Coles' dividends have steadily risen from 35.5 cents per share in 2019 to 57.7 cents in 2020, 61 cents in 2021, 63 cents in 2022, 66 cents in 2023, and 68 cents in 2024.
All of those dividends came with full franking credits attached too.
Coles' weakness is growth. Supermarket margins are thin, cost pressures are constant, and competition from Woolworths Group Ltd (ASX: WOW) and Aldi limits pricing power. When earnings come under pressure, the ASX dividend stock has limited flexibility because its payout ratio is already high.
Looking ahead, Coles is likely to remain a steady dividend payer rather than a growing one. Coles maintained its dividend streak in 2025, paying 37 cents per share in March and 32 cents in September. The 69-cent total marked a 1.47% increase on 2024's payout.
Since hitting a record high in September, the blue-chip share has fallen to $21.28 at the time of writing. That's lifted the trailing dividend yield to 3.24%, or 4.65% grossed-up with full franking—though this reflects past dividends, not future payouts.
In 2026, investors should expect consistency over excitement, with modest dividend growth tied closely to cost control and execution.
Washington H. Soul Pattinson
This $15 billion ASX dividend stock is one of the quiet achievers of the ASX. Soul Pattinson's dividend policy is simple and powerful: pay a fully-franked dividend every year and aim to increase it over time.
That approach has resulted in one of the longest dividend growth records in Australian market history. The investment house has been the most reliable ASX dividend share over the last three decades, as it has grown its payout every year since 1998.
The company's strength is diversification. Its portfolio spans telecommunications, resources, property, credit and private equity, smoothing earnings across cycles. Management takes a long-term view and prioritises balance sheet strength, which supports dividend durability even in weaker markets.
The trade-off is yield. Soul Pattinson's dividend yield is lower than many traditional income stocks, reflecting its focus on sustainability rather than maximum payout. As mentioned, Soul Patts hasn't got the largest payout, with a grossed-up dividend yield of 3.9%, including franking credits, in 2025.
The outlook remains solid. As long as the company continues to reinvest wisely and protect capital, this ASX dividend stock looks well placed to keep delivering slow, steady dividend growth for patient investors.
