One of the most satisfying things about owning good ASX dividend shares is when they increase the dividend each year.
Not only does that help protect against (or outperform) inflation, but it also helps us feel wealthier. I love seeing dividend money hit the bank account.
By focusing on businesses with growing payouts, this implies they are much less likely to cut their dividends. If I'm relying on dividends, I don't want to see my dividend income disappear during an economic downturn.
I think the two businesses below are among the best on the ASX for regular dividend growth.
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APA Group (ASX: APA)
I'd say APA has the second-best record on the ASX for consistent payout increases. It has increased its payout every year since 2004.
As an energy infrastructure owner, the business plays a key role in Australia's economy by transporting gas from sources of supply to demand. Impressively, the business supplies half of the country's gas usage.
The ASX dividend share's key asset is a huge gas pipeline network across Australia. APA has regularly expanded its network over the years (with some projects currently in progress), which has helped increase its earnings and cash flow.
It's the growth of cash flow that helps fund a larger distribution to investors each year. APA also has a portfolio of other energy assets, including renewable energy generation, batteries, electricity transmission, gas power stations, gas storage, and gas processing facilities.
With most of its revenue linked to inflation, it has a pleasing tailwind for growth.
Its guided FY26 payout of 58 cents per security translates into a current distribution yield of 5.6%, at the time of writing.
WCM Global Growth Ltd (ASX: WQG)
WCM Global Growth is a leading investment company (LIC) that aims to generate investment returns through a global share portfolio.
With a great long-term portfolio performance, shareholders can see both a solid dividend and longer-term capital growth.
WCM aims to find high-quality businesses that have expanding economic moats (improving competitive cultures) and a corporate culture that fosters that improvement.
Since the ASX dividend share's inception in June 2017, its performance (after fees) has been an average of 15.4% per year, outperforming the global benchmark by more than 2% per year.
In 2023, the LIC changed to paying dividends quarterly and has increased the payout every three months. The annual dividend has increased each year since 2019, when it began paying dividends.
The next four dividends to be declared are expected by the LIC's board to come to 9.69 cents per share, translating into a forward grossed-up dividend yield of approximately 7.5%, including franking credits, at the time of writing.
