When I'm looking for ASX income stocks to buy, the dividend growth that the stock can potentially offer is far more important than its upfront dividend yield.
Many ASX dividend stocks that offer large upfront yields aren't in a financial position to be able to grow those yields substantially going forward. That puts a speed limit on future potential returns.
But income stocks that offer a potentially long runway of dividend growth can compound their future payouts for the benefit of shareholders. That's the kind of investment I love to buy.
So with that in mind, let's discuss two ASX income stocks that have been growing their payouts at the speed of a rocket.
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Two ASX income stocks growing their dividends at a blistering pace
Washington H. Soul Pattinson and Co Ltd (ASX: SOL)
First up, we have the investing house, Washington H. Soul Pattinson, or Soul Patts for short. Soul Patts runs a massive portfolio of underlying investments on behalf of its shareholders. This portfolio includes large stakes in other ASX blue chips, strategic single stock investments, private credit, venture capital, and property.
In short, a diversified, yet high-performance asset base.
This company has been at this game for decades, and it has the runs on the board to show for it. For one, it is the only ASX income stock that has a 28-year (and counting) streak of annual dividend hikes. These aren't 1% per year hikes either. Soul Patts doled out an annual total of 50 cents per share back in 2015. By 2025, this had grown to $1.03 per share. All fully franked too.
Between 2021 and 2025, this ASX income stock delivered an average annual dividend growth rate of 11.9% per annum. That's real wealth-building material right there.
MFF Capital Investments Ltd (ASX: MFF)
Next, let's check out another ASX income stock in MFF Capital. MFF is a listed investment company (LIC), meaning that, much like Soul Patts, it runs an underlying portfolio on behalf of investors. In MFF's case though, this portfolio consists mostly of US stocks.
MFF follows the Warren Buffett playbook of buying high-quality companies at compelling prices, and holding them for years on end. Some of its largest current positions, which include Amazon, Alphabet, Mastercard, American Express, and Visa, were accumulated years ago.
Let's talk dividends, though. Like Soul Patts, MFF is a dividend growth machine. It doesn't quite have Soul Patts' payout longevity yet. But its growth has been equally impressive.
Back in 2017, MFF forked out 2 cents per share in annual, fully franked dividends to its shareholders. By 2021, the company had hit 7.5 cents per share. Last year, investors enjoyed a total of 17 cents per share. In 2026, the company has told investors to expect a total of 21 cents per share, up 23.5% from just 2025 levels if so. Since 2017, the company has averaged an annual increase of more than 25%. Enough said.
